How to Profit from the Commercial Real Estate Blow-Up
Feb 26th, 2009 | By Charles Delvalle | Category: Chart of the DayWith consumers losing savings, their jobs and their homes, it was only a matter of time before businesses across the country began to feel pain.
And it’s no surprise to see corporations hit the wall all across America (Wolf Camera was the latest filer). Nor is it any surprise to see commercial real estate vacancies rocket higher.
Although vacancy rates haven’t hit their recent 2003 peak, they should surpass it in the next month or two.
This is a clear signal that most commercial real estate investment trusts (REIT) are going to see their earnings take a big hit.
We already saw commercial REIT Developers Diversified Realty Corp. (NYSE:DDR) take a huge hit.
But DDR has already dropped too far to be an attractive short.
(As a general rule, if a stock is selling for under $5 it’s too cheap to short).
Kimco Realty Corporation (NYSE:KIM), on the other hand, still has a ways to drop.
Better still, KIM recently hit new lows and is sure to suffer as the commercial real estate market continues to fall apart.
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Charles Delvalle is a self-taught market-timing professional and value analyst who's followed and invested in the market for the past ten years. He uses a unique combination of technical and fundamental research to pinpoint rapid profit opportunities with stocks and options.
Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering undervalued, cash-rich companies. He frequently mocks government stupidities and points out the "inaccuracies (or lies, take your pick) that government reporting frequently dispels as "truth".
