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+--- Thread: HCP on sale? (/showthread.php?tid=240)
HCP on sale? - hendi_alex - 10-04-2013
According to a Seeking Alpha article, HCP is the only REIT on the Dividend Aristocrats index. Shares originally tumbled with the whole sector because of interest rate fears. Now the CEO has been fired in what would have to be viewed as a very unusual way. The company has experienced great success during Flaherty's ten year reign. So the main question arrives. Is HCP a bargain at today's price? Shares have moved from $55.28 in May to under $39 today.
Current yield = 5.4%
For the second quarter, funds available for distribution = $0.62 per share, against a distribution of $0.525 per share. Pay out ratio of dividend versus FAD = 85%
Dividend has steadily moved from $0.30 in 1997 to its current $0.525 today, and there was a 2:1 split in 2004.
I just bought a few shares at $38.90, but will watch very closely until the conference call at the end of this month. It is pretty clear that the company has not told the entire story related to this firing.
RE: HCP on sale? - fiveoh - 10-05-2013
(10-04-2013, 01:17 PM)hendi_alex Wrote: According to a Seeking Alpha article, HCP is the only REIT on the Dividend Aristocrats index. Shares originally tumbled with the whole sector because of interest rate fears. Now the CEO has been fired in what would have to be viewed as a very unusual way. The company has experienced great success during Flaherty's ten year reign. So the main question arrives. Is HCP a bargain at today's price? Shares have moved from $55.28 in May to under $39 today.
Current yield = 5.4%
For the second quarter, funds available for distribution = $0.62 per share, against a distribution of $0.525 per share. Pay out ratio of dividend versus FAD = 85%
Dividend has steadily moved from $0.30 in 1997 to its current $0.525 today, and there was a 2:1 split in 2004.
I just bought a few shares at $38.90, but will watch very closely until the conference call at the end of this month. It is pretty clear that the company has not told the entire story related to this firing.
Fastgraphs has the stock at slightly overvalued compared to its historical FFO(current 16.8, historical 14.8). That being said, I know nothing about HCP.
RE: HCP on sale? - hendi_alex - 10-07-2013
Nice bounce for HCP, up over a dollar today, currently trading at $40.08!
RE: HCP on sale? - TomK - 10-07-2013
You've probably see this article already, I imagine.
Brad Thomas seems like a bright guy and certainly seems to know the REIT space. That said, he seems to change his opinion of specific REITs, and to trade in and out of positions, pretty quickly and easily. This article is a fine example of that.
He raises a good point about the explanation provided about the firing, and that more transparency would be good. But is the outgoing CEO all that this REIT had going for it?
RE: HCP on sale? - hendi_alex - 10-07-2013
Someone pointed out that the company had gone through 4 CFOs in the past ten years. That brought up the suggestion that maybe it is impossible to work with this guy. I don't think that we will get any solid answers until the CC later this month.