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Post by anitya on Jul 5, 2023 19:24:53 GMT
Anybody here holds this stock? what are your current thoughts on this company stock for a multi month trade or long term hold? Pays 4+% dividend and so the opportunity cost relative to Treasuries is not severe. As a REIT div, I think we get taxed only on 80% of the div which would make the div competitive against Treasury rates. Strangely, M* shows Price to Cash flows (16%) is higher than P / E (12%) - may be they have more fully depreciated properties than new ones. P/S is also 12. The stock price has not made much progress since late 2015 peak. It seems to be forming a good base here. richardsok, PSA seems to have issued a lot of preferred stock and I thought you might have a view about this company.
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Post by richardsok on Jul 6, 2023 11:16:06 GMT
Anybody here holds this stock? what are your current thoughts on this company stock for a multi month trade or long term hold? Pays 4+% dividend and so the opportunity cost relative to Treasuries is not severe. As a REIT div, I think we get taxed only on 80% of the div which would make the div competitive against Treasury rates. Strangely, M* shows Price to Cash flows (16%) is higher than P / E (12%) - may be they have more fully depreciated properties than new ones. P/S is also 12. The stock price has not made much progress since late 2015 peak. It seems to be forming a good base here. richardsok , PSA seems to have issued a lot of preferred stock and I thought you might have a view about this company. PSA preferreds tick off several boxes for me: Recent Mer Lynch "Buy" on the common shares, good earnings, large insider ownership, common dividend, Tip Ranks score:7. However, as you point out, the preferreds, barely breaking above 5% yield, are insufficient for me. I try to reach for at least 7% in my "hold for income" bucket. Below 6% is a deal-breaker. Heck, even CNLPL gives you that much. The good news is that the PSA preferreds I looked at are selling well under par. If interest rates drop significantly, management may have sufficient reason to redeem the preferreds at $25, giving the owners a nice one-time windfall. But if interest rates remain 5-6% or so, preferred owners will limp along indefinitely. I have not looked deeply enough to see which preferreds are redeemable and when. How I'd play it: To use PSA-J as an example, note at 22.40, it's been lower only a couple of times during the past three years, and then only relatively briefly. If I really wanted to own PSA-J (for some reason) I'd put in a low-ball GTC buy order at about 21.40 or so. Then just leave it there and forget it. Maybe oppty will strike. I looked at the possibility of selling PSA naked puts. Uber low vol -- Not worth the trouble right now. The common has been directionless for almost a year. That can't last.
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Post by anitya on Jul 6, 2023 18:09:16 GMT
richardsok , Thanks. Sorry, I forgot that you are travelling / on vacation. When are you back in the States? Based on your comment that the preferred are barely breaking 5%, I suspect they were issued when interest rates were rock bottom and the preferreds are unlikely to ever be called. I think you are right, they are a no touch. Re common being directionless (for 9 months), which way do you think it might break? May be uncleharley would have an opinion on this. Edit: I noticed uncleharley has not posted for five days. I do not recall him saying he was going to be off. I hope he is doing well and taking a summer vacation. A
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Post by uncleharley on Jul 7, 2023 13:09:29 GMT
anitya,I'm alive & well. The markets seem to be a bit boring right now. I guess some people would call this the summer doldrums.
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Post by anitya on Jul 7, 2023 20:15:10 GMT
anitya ,I'm alive & well. The markets seem to be a bit boring right now. I guess some people would call this the summer doldrums. uncleharley , Glad you are back. Is the sell off in SPY and QQQ into the close today a result of options expiration where retail piled into options in mega cap tech and the dealers selling today their hedges they held against those options they wrote? In other words, is it a one off sell off in SPY and QQQ as smaller caps and junkier tech did alright?
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Post by uncleharley on Jul 7, 2023 20:46:37 GMT
anitya ,I'm alive & well. The markets seem to be a bit boring right now. I guess some people would call this the summer doldrums. uncleharley , Glad you are back. Is the sell off in SPY and QQQ into the close today a result of options expiration where retail piled into options in mega cap tech and the dealers selling their hedges they held against those options they wrote? In other words, is it a one off sell off in SPY and QQQ as smaller caps and junkier tech did alright? Ask me after the break from a completed pattern. For now I think it is a one off, but I am assuming a tight flag pattern continues to develop on light volume before the break. If that continued development happens and the break is up, we can expect the major indexes to challenge their all time highs on the next run. We shall see next week or the week after.
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