Thursday, March 16, 2017

Recent Buy: Store Capital (STOR)



On March 15-16, I bought 69.3053 shares of Store Capital (STOR) with an average price $23.26 for a total of $1612.00. at 5% yield this buy increased by dividends by $80.39 for a total of $3,385.47. This buy increase my Stor Position to 118.552 shares. I'm going to hoard as much as I can at 5% yield.

For those unfamiliar with STOR it's the O Jr. of the stock market. Whereas O deals in A-AAA+ leases STOR specializes in BBB-B+ (some unrated) companies such as restaurants, movie theaters, etc. If you're interested below is an article on STOR. It's also one of the fastest growing reit in the market with an extremely low payout ratio. Caution Grander Mountains (one of STOR leasee) is currently in bankruptcy. It makes up a small amount of STOR income and Grander Mountains has agreed to pay all of its leases in bankruptcy but you know how the market is. Also STOR is a small cap so it's riskier than O

http://seekingalpha.com/article/4049887-now-time-focus-store-capital

My next buy might be Compass Mining (CMP). At 4% yield with a 60% coverage and near 52 weeks low CMP is looking interesting. there is a huge negativity on its next quarter earnings so I might buy now or wait. Not sure yet.

Disclaimer: trust no one.

2 comments:

  1. I just did a quick 5 minute analysis and fund that STOR yield is about the same as Realty Income. If it's more risky, why did you buy it over Realty Income? Just curious.

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    1. Hi HI, sorry for the late reply.

      Stor is a bit higher yield than O but it's currently trading at below fair value (due to grander mountain bankruptcy) and has a higher growth potential than O. I still own O and buys it monthly in my motif but for a company that is basically O in the mid credit sector + higher yield + better growth opportunities sign me up. I hope that helps

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