As we discussed this week with the CCI, investors continue their search for yield. Today we analyze AVB which we were WRONG about on the short side, but when the facts change, what do you do sir? Below is how we examined the name in our Tuesday 10/6 Game Plan. Anyone who would like a full copy of Tuesdays Game Plan email me at firstname.lastname@example.org.
Stocks to be viewed as shorting opportunities are AVB. AVB is a REIT play up 8% YTD and 24% over last one year period and sports a dividend yield of 2.8%. Earnings have not moved the needle much with a gain of .8% on 7/28 and losses of .2, 1.5 and .6% on 4/28, 1/29 and 10/28. Since the stock took out a flag pattern above the round 160 number almost a year ago on 11/26/14 it has bounced between a range of 160-180. It is approaching the round 180 number for the 4th time in ’15 and each time it was sent lower quickly. Look to short a move near that number at 178.75. One note of caution ’14 was a very nice year for AVB (lost ground just 11 weeks all year) and it could be just consolidating for 10 months. A buy stop to cover here could be used to actually go LONG.