realty income alert

Realty Income

On May 4, 2017, a story came out about Spirit Realty having credit issues with some tenants.  Shares for Spirit then proceed to drop 20%.  In the wake of that, other triple-net lease players fell hard, including Realty Income.  This is a textbook example of Custom Stock Alerts.

Realty Income is one of the most beloved REITs – especially given that it bills itself as “The Monthly Dividend Company”.  Shares tend to trade at a premium in the REIT space which in turn helps the company maximize money received by issuing shares.

As an existing shareholder, I am always looking to add to holdings when, in my opinion, they are unfairly beaten down.  That’s precisely what happened when an unrelated company reported bad earnings.

Custom Stock Alerts

My site, customstockalerts.com helped me out here.  I had existing alerts setup for Realty Income, seen here (this is how it looks after the fact, note the 2 inactive alerts).

realty income alerts

I have a multitude of alerts setup for the company, proximity to 52 week high or low, daily price movement, dividend yield above 5% and just a rough ballpark of a price I’d be interested in.

Alerts

At the market open I received two alerts back to back, one was for proximity to a 52 week and the other for a 5% price movement.  This is actually a screenshot from the text on my phone.

realty income alert

Armed with that knowledge, I did a quick check on whether shares seem reasonably valued.

Valuation

Fast Graphs is a tool I use often, the blue line represents the average multiple over a given time period.  The black line is the stock price and you can see it meander back and forth.  This represents times when, roughly speaking, the stock may be over or under valued.

o reasonably valued

The movement yesterday put the stock essentially at the blue line, which is good for me.  Other than a very brief stint near the end of 2016 (which I also purchased), the company spent the entirety of 2015 in a more “overvalued” state.

The Aftermath

The following day, May 5th, another story comes out basically giving the all clear.  The issues were – in fact – just limited to Spirit Realty!  I, for one, am shocked that the market overreacted.

Shares of the companies, including Realty Income, that were beaten down just the day prior, suddenly bounce back up.

Summary

Just like that, the opportunity door closes.  This is why this is a textbook example of Custom Stock Alerts and why I’m so passionate and adamant about the site.

Something happened, I got an alert, I acted on it.  In all honesty I would have otherwise missed it being busy with my day job and life in general.

Come and start a free trial, no credit card required.  I’m going to be bringing more features over time but I am always looking for ideas and feedback.

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