{"id":43441,"date":"2013-10-26T12:07:50","date_gmt":"2013-10-26T16:07:50","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=43441"},"modified":"2013-10-26T12:07:50","modified_gmt":"2013-10-26T16:07:50","slug":"reits-insider-buying-seen-in-stag-industrial","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/10\/26\/reits-insider-buying-seen-in-stag-industrial\/","title":{"rendered":"REITS: Insider Buying Seen In STAG Industrial"},"content":{"rendered":"

By The Sizemore Letter<\/u><\/p>\n

In the world of triple-net REITs, most of the attention in the past week has been on the planned merger of American Capital Realty Properties<\/b> (<\/span>ARCP<\/a>)<\/span><\/strong> and Cole Real Estate Investments<\/b> (<\/span>COLE<\/a>)<\/span><\/strong>.\u00a0 I recently wrote about ARCP<\/a>, noting that the stock had seen heavy insider buying over the summer\u2014at prices higher than today\u2019s\u2014and recommended the stock based on its growth prospects within a sector I love and its high dividend yield\u20146.5% at today\u2019s prices.<\/p>\n

ARCP fell on the news on the COLE merger, which is typical for the acquiring firm (as a general rule, the acquirer falls and the acquired rises).\u00a0 But I continue to see value in ARCP.<\/p>\n

Today, however, I want to highlight insider buying in one of ARCP and COLE\u2019s competitors, STAG Industrial<\/b> (<\/span>STAG<\/a>)<\/span><\/strong>.<\/p>\n

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The scale of the insider buying of STAG is considerably smaller than that of ARCP.\u00a0 But its scope is every bit as wide, as six company officers have made purchases in the past quarter.\u00a0 As you can see from STAG\u2019s insider trading history<\/a>, the company\u2019s officers have been steadily and consistently accumulating the shares over the past year.<\/p>\n

Should you follow their lead?<\/p>\n

With bond yields back to 2.5% and with quantitative easing promising to stay in place a little longer, STAG\u2019s 5.8% dividend is attractive, if not spectacular.\u00a0 STAG is also a young, growing REIT with a small market cap of less than $1 billion and a clean balance sheet.\u00a0 STAG is not likely to double in price in the next year or two, but in my view it would be a nice addition to a diversified income portfolio.\u00a0 And given its size and pricing, I expect it to outperform most of its peers in the REIT sector.<\/p>\n

Disclosures: Sizemore Capital is long ARCP. This post first appeared on TraderPlanet<\/a>.<\/p>\n

Charles Lewis Sizemore, CFA, is the chief investment officer of the investment firm Sizemore Capital Management.\u00a0<\/em>Click here<\/em><\/a><\/strong>\u00a0<\/strong>to receive his\u00a0<\/em>FREE 8-part investing series that will not only show you which sectors will soar but\u00a0also which stocks will deliver the highest returns. The series starts\u00a0November 5 and\u00a0includes a FREE copy of his\u00a02014 Macro\u00a0Trend Profit Report.<\/em><\/i><\/p>\n

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This article first appeared on Sizemore Insights as REITS: Insider Buying Seen In STAG Industrial<\/a><\/p>\n

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