Most property stocks have broken their long term uptrends and are displaying the early signs of a “rollover” type pattern. We’ll most likely see a bounce from the current oversold level, driven from an outcome on the December Fed rate hike. However, the probability of a bearish lower high in the next 3 to 6 months will mean the counter trend trade from the current lows will be short and explosive but the real opportunity to watch will be the short side trade in 2017.
The above picture applies to most property trusts and property development companies. The exception appears to be SGP and LLC. Out of the two names, my preference remains Lend lease.
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FY17 should deliver EBITDA of $1.2b, EPS of $1.30 and DPS of $0.68 placing the stock on a forward yield of 4.9%
Bob Chapman says:
Hi Leon,
What is the “HL” in the green circle? Also, what does “TP” mean?
Leon says:
Hi Bob,
“HL” is higher low and “LH” is lower high. In uptrends I’ll often flag the higher lows and in downtrends I’ll flag the lower highs.
“TP” relates to a turning point. These are references for general peaks and troughs.