New stocks getting cheap

The 3rd quarter of 2017 began with whipsaw action in the shortened holiday week.  Monday and Friday were sharply up with REITs taking a dive on Wednesday and Thursday.

Source: Yahoo Finance chart

This volatility afforded a sale of City Office REIT which somehow evaded much of the price decline and gave us a cheap entry point for some more shares of Global Net Lease.

Other opportunities created in the shakedown were Brandywine (BDN) and RLJ Lodging (RLJ).  Neither of these are in 2CHYP yet, but we will be watching for an ideal time to get in.

Brandywine has a massive development pipeline which could greatly increase FFO/share as it kicks in.  We like its geographic concentration as it is getting to a point of having synergy in its market share.

RLJ is more of a deep value play.  Since its purchase of Felcor, the market has not liked it and has sold it to a point of significant undervaluation.  We will let you know if and when we commence either of these trades, so stay tuned.

Commentary may contain forward looking statements which are by definition uncertain.  We retain no obligation to update or correct forward looking statements should the available information change.  Actual results may differ materially from our forecasts or estimations.

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7/6/17 2CHYP Performance since inception

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