Trade Idea – Ford

On 6 February 2018 the Ford shares have been sold at USD 10.5. The 1-day realized return before any taxes and fees is 2.14%.

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Trade Idea – Ford

On the basis of increased market volatily a short term focused trade has been initiated in Ford (which is one of the most oversold stocks currently) at USD 10.28 on 5 February 2018.

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Historical share price development of Ford (source: Yahoo Finance)

From technical perspective the stock is clearly following a long-term downward sloping trend, but some return might be possible over a couple of days.

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FY 2017 adjusted profit before tax results (in mn, source: Ford)

Performance of the automotive segment was driven by North America and the financial services gained a lot as well.

Link to the IR site of the company for background data and insights.

Trade Idea – HCP

HCP is an integrated REIT that invests mainly in healthcare related real estate portfolio (senior housing, life science and medical office) in the US. Since 1985 it has been a publicly listed company and is the first healthcare REIT selected into the S&P 500 index.
Mostly inorganic type of growth strategy characterized its development.

  • In 1999 it completed a merge process with American Health Properties, which was the largest transaction ever closed in the healthcare REIT sector at that time (USD 1bn deal value). Its assets under management reached USD 2.5bn.
  • With the acquisition of CNL Retirement Properties in 2006 for USD 5.3bn value it practically doubled its size.
  • In 2007 it created the life science platform through the USD 2.9bn value purchase of Slough Estates (83 properties).
  • In 2012 it acquired a USD 1.7bn senior housing portfolio from a joint venture between Emeritus and Blackstone.
  • In 2016 the spin-off of Quality Care Properties (QCP) into an independent publicly-traded REIT has been completed.

 

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Historical share price development of HCP (source: Yahoo Finance)

Currently the company is on the path of revitalizing/transforming its portfolio (reducing Brookdale concentration, announced sales process related to the remaining UK holdings, reentering the Boston life science market).
The latest (2017 Q3) report provided lower net income and FFO numbers compared to the previous comparable period.
Many REITs are underperforming nowadays on the basis of increasing rates, however HCP still offers significant expected dividend yield (over 6% per annum).
Long position in HCP has been opened on 18 January 2018 at USD 23.4.

Trade Idea – Foot Locker

The negative environment related to traditional US department store titans has already been mentioned in the previous post. In case of Foot Locker the shares are under heavy pressure on the news Nike – its most important partner – might team up with Amazon. Needless to say, this would be very disruptive for FL which operates more than 3000 footwear stores globally.

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Historical share price performance of Foot Locker (USD), source: Yahoo Finance

Based on this significant share price decrease, this company seems to have the lowest RSI level currently with relatively high number of buy recommendations. In my opinion it is worth to try it on for some days at least 🙂

On 21 June 2017 long position has been opened at USD 45.4 and on the same trading day I closed it at USD 46.98. The realized 1-day return before any taxes and fees is 3.48%.

Link to the IR site of the company for background data and insights.