Additional Trading Ideas:
In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Some of these may need to see a break past key support or resistance:
FBHS, PCTY, BECN, PPC, ARRS, WCN, ATO, ALB, UDR, NDAQ, IPXL, EPAY, ICLR, PODD, PFPT
NEW BULLISH Plays
National Health Investors - NHI - close: 62.37 change: +0.81
Stop Loss: 59.85
Target(s): To Be Determined
Current Gain/Loss: Unopened
Entry on December -- at $---.--
Listed on December 28, 2015
Time Frame: Exit prior to earnings in February
Average Daily Volume = 251 thousand
New Positions: Yes, see below
Assisted living and senior (citizen) housing is a growth business. Nearly 10,000 baby boomers hit retirement age every single day. The probability of becoming disabled and needing care or becoming cognitively impaired is almost 70% for people age 65 and older. One way to play this major demographic trend is NHI.
NHI is considered part of the financial sector because it is a REIT. According to the company, "National Health Investors, Inc., a Maryland corporation incorporated and publicly listed in 1991, is a healthcare real estate investment trust (REIT) specializing in financing healthcare real estate by purchase and leaseback transactions, RIDEA transactions and by mortgage loans. NHI's investments include senior housing (assisted living, memory care, independent living and senior living campuses), skilled nursing, medical office buildings and specialty hospitals." They currently have
188 properties in 31 states. More than 60% of their housing is focused on senior living.
Shares of NHI did not have a very good year. The stock peaked near $77.00 a share in January 2015 and plunged toward $54 by early September. The $54.00 region was major support and NHI began to bounce. The bounce was likely driven by income investors since NHI, at its lows, at a dividend yield of more than 6%. The stock still yields more than 5.4% today. The company's next dividend ($0.85) is coming up in January.
Technically the stock appears to be turning around. November saw NHI shares produce a higher low. Lately investors have been buying the dips. The last few days have seen the stock breakout past significant resistance in the $61-62 area. The point & figure chart is bullish and forecasting a long-term target of $74.00.
Today's display of relative strength (+1.3%) and breakout above $62.00 looks like a bullish entry point. However, the simple 200-dma could be resistance and it is directly overhead at $62.84. Therefore we are suggesting a trigger to launch bullish positions at $63.05. We will plan on exiting prior to NHI's earnings in February.
Trigger @ $63.05
- Suggested Positions -
Buy NHI stock @ $63.05
Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.
Option Format: symbol-year-month-day-call-strike