Well, I was screaming "Buy!" at 21, a few years back, when the risk/reward was very favorable. Anyone buying at 40- anything hardly has/had that advantage. Hardly conservative investing, like people like fme3456 would have you believe.
But you gamblers go ahead. Go ahead and try to reach for that last, late dollar.
Oh, by the way, the stock is back into the 40s again. Hope you took my recent advice and sold at 56 fme3456. (or smarter yet, bought puts then, like I did). So far, you're not looking too smart hanging on to an overpriced REIT in a market where interest rates are going up (and show no signs of stopping anytime soon).
Self-esteem is hardly the issue. Risk/reward is.
The short term spike is over. A couple cents here or there is not the issue.
This stock, and this sector, is vastly over valued. You will kick yourself later for letting the (tax) tail wag the dog.
FYI, these are the puts I bought back a couple of weeks ago.
Last trade(March 17) was mine, at $1.05.
Notice today that they are bid at about $1.50.
I believe that is 40%+.
But, I haven't sold yet. Not even close to doing that.
The stock is down 2 points since I bought puts, and the puts are up about 40%. The leverage in them make that possible(of course, that leverage works in reverse, so I'm not calling this investing, either - this is speculation).
>>And besides, timing the top is difficult. Like you said. <<
I said it was difficult to time it, but not to determine it is too high and too risky.
It's like driving a car at 200 mph. Hard to predict exactly when it will crash, but, it's not hard to predict that it will, and that, therefore, you shouldn't be in it!
Stand back and ask yourself, are you getting paid enough of a yield to chase a REIT that has almost tripled in price in the past couple of years, particulary when you can get a higher, safer yield from a 3 year CD ?
Something is way, way out of whack.
I'm thinking of buying puts here, even though I love the company and the management. Nothing personal, but this stock is very overblown and it either gets bought out by some 'buy-high' private equity group for a slight premium, or it will fade back down $10-20 within a year or so.
This stock is way overdone and the puts are a good bet. (I bought some SEPT 50s and some JUN 55s today).
That said, I will never disparage the company. It's a good one.
But the recent buyers of its stock are out to lunch.
I figure the stock is worth a little under $40 currently, based on $2.38/.06. A fair yield would be about 6% today, and that's generous, I think. A couple of years ago, when rates were lower, this stock was priced to yield 8-9%.
I think it is last call at the REIT/Yield chasing party. Enjoy that last round!
I can't believe whats going on with REITs. I was following MAA when it was at $21 a share. I got in at $21 and sold at around $26. It's VERY scary that people are willing to buy at an all-time high to get a 4.10% yield. You can get that in a money market account, let alone a 3 year CD! I would not buy at these levels. Where is the upside potential at $59 a share? This is mind-boggling. Congratulations to REIT investors who have held on the last few years. WoW