January Stock Consideration

This month I want to buy shares in a company that I already own. So I screened my portfolio to see which of my companies trades at 52-week low. I screened out two REIT stocks that offer good value today.

Brookfield Property Partners (TSX: BPY.UN)
Brookfield Property owns, operates, and invests in commercial properties in North America, Europe, Australia, and Brazil. They diversify themselves into different sectors such as Office, Residential, Retail, Industrial, Hospitality, and Others.

The stock currently trades at 0.7 to its book value and offers a dividend yield of 5.6%. Its 5-year historical average suggests that the stock can trade as low as 0.5 to book value and as high as 1.0 to book value.

The 3-year chart suggests that the stock reached a solid support level and should bounce off from here. But it struggles every time it reaches the $31 level. My intuition tells me the next time it reaches $31, it will break that resistance.



If the stock trades below $27 level in two weeks then I will buy it. If it bounces off from here and rise above $29 then I won’t touch it.



Plaza Retail REIT (TSX: PLZ.UN)
Plaza Retail REIT is a developer, owner and manager of retail real estate, with a focus on central and eastern Canada. It’s a pure Retail play.

The stock currently trades at 1.0 to its book value and offers a dividend yield of 6.3%. Its 5-year historical average suggests that the stock can trade as low as 0.9 to book value and as high as 1.1 to book value.

The 3-year chart shows that the stock peaked at $4.90 and started to go down. However it built a nice support base around $4.20 and held up very well. 



If the stock trades below $4.30 in two weeks then I will buy it. If it bounces off from here and rise above $4.60 then I won’t touch it.



So these are my two picks for January. Let me know what you think about both companies. Would you buy them at those levels?

6 comments:

  1. I am not big in timing the market. So hard to say what is a good time to buy. But, stocks look good for long term buy and hold strategy.

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    1. Yes, timing is tough and something we cannot control, but buying it while it's cheap should yield better results long term.

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  2. Hi! Just wondering if you purchased bpy.un yet? The price is looking very attractive. Do you have any concerns with interest rates going up?

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    1. I didn't purchase it yet. I will be ready to buy it by the end of next week. Hopefully the price stays below $27. This is a good entry point. In my case, I will be adding to my position. Interest hires is a gradual process. I'm pretty sure BPY and other big cap stocks will do fine.

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  3. I've owned Plaza for a couple of years now. I like to add to my position when it dips - won't see much capital gains from it - but a 5-7% yield (depending on when you buy) is not bad...plus they keep raising the dividend. One of the stocks I love Dripping each month.

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    1. Yes, Plaza has a nice yield and never fails to raise it. However, my Plaza holding is twice as big as BPY. So I would like to increase my exposure in BPY first and then add some more shares of Plaza REIT. I would like to see it below $4.

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