06-08-2015, 09:08 AM
I've been trying to dump HCP for a while. Last attempt was in selling June $40 calls for about $1.90. Finally decided to close the calls last week for 15 cents and then sold HCP straight out for $$38.38. Sure am glad that I didn't wait on expiration, as shares are trading today for near $37.
I'm bullish on REITs long term, but think that they will see a bottom far down from current levels, with the blue chips like SPG yielding closer to 5% versus its current 3%+ yield. I'm currently accumulating my two REIT funds KBWY and ROOF, but very slowly and in very small increments. Probably won't add more shares until after at least a 5% drop from current levels. Would love to add some exposure via VNQ which holds mostly higher quality larger cap REITs. Won't add that until the yield is north of 4.5%-5.0%. I'm confident that day is coming, just need to be very patient and keep the cash available to buy when the opportunity comes. Instead of buying VNQ, may instead construct a motif and buy a basket of favorites. With the motif there are no management fees, there are low trading costs, and the basket approach offers easy, inexpensive diversification within the sector.
I'm bullish on REITs long term, but think that they will see a bottom far down from current levels, with the blue chips like SPG yielding closer to 5% versus its current 3%+ yield. I'm currently accumulating my two REIT funds KBWY and ROOF, but very slowly and in very small increments. Probably won't add more shares until after at least a 5% drop from current levels. Would love to add some exposure via VNQ which holds mostly higher quality larger cap REITs. Won't add that until the yield is north of 4.5%-5.0%. I'm confident that day is coming, just need to be very patient and keep the cash available to buy when the opportunity comes. Instead of buying VNQ, may instead construct a motif and buy a basket of favorites. With the motif there are no management fees, there are low trading costs, and the basket approach offers easy, inexpensive diversification within the sector.
Alex