Superfito wrote: HurricaneKid wrote:
I am a conservative investor and financials always seem so cheap. Right now I like STOR. They are a Warren Buffet Pick. They are a real estate investment firm. They purchase store fronts and rent them out. They have mostly long term leases so their income stream is good. At $24 they pay a 6% dividend and have OK run in them. I think they could get back to $35-$37 in the next year or two. You are not going to get rich off of it. However if you are looking for a solid stock that is a little undervalued and could make you a little money in the next year or two, they are a solid pick.
Financials are going to get crushed as defaults skyrocket. There isnt a prognostication out there that doesn't believe loan defaults aren't going to be an issue in coming years.
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I'm no pro but I wouldn't touch any company that's reliant on commercial real estate over the next few years.
I don't know I am more prone to buying companies that are at a deep discount. Both of these stocks have your guys opinions built into them. Discover financial and Synchrony Financial were $80 and $40 before the pandemic. I bought Discover at $30 and now it is hovering around $50. I bought into Synchrony at $15 and now it is hovering around $23.
Before the pandemic STOR was hovering around $40. They dropped to $15. I bought in at $20 a little while ago and it is now at $23.5. IT pays a 1.5% quarterly dividend which it just signed off on and distributed. The dividend has increased by 6% year over year since its inception 6 years ago. They own the store fronts in big cities which they lease to companies. The leases are long term and if a company goes under they still own the valuable real estate which they can lease to another company. It is kind of like getting rich off selling the equipment to gold miners instead of being the gold miner.
These biases that the general public have are really built into the price but if you actually look at the company it has really solid financial footing and kind of a money maker.
Also I am not saying anybody should be taking large positions (3+% of portfolio) in any of these companies. However I think you should have some of your portfolio in discounted stocks. Because if you buy at the right time you can make quite a bit of money on them. I expect STOR to get to around $35 again in the next couple of years. I think Discover and Synchrony have a little run in them yet and plan to hold them for the year.
I also like BMO Harris as a Buy and a long term hold in the financial sector.