Retail Opportunity Investments Corp. (NASDAQ:ROIC)

CAPS Rating: 5 out of 5


Player Avatar TMFMattyA (99.71) Submitted: 8/19/2013 10:47:25 AM : Outperform Start Price: $12.29 ROIC Score: +10.53

Going back for seconds on ROIC.

REITs in general have sharply underperformed recently thanks to the Fed taper talk which has caused a spike in Treasury yield and, consequently, hurt everything else on the planet that pays any kind of meaningful yield.

ROIC is an exceptionally managed REIT that has put its capital to work buying grocery-anchored shopping malls, mostly on the West Coast. The past few years have been great for bargains in that area, and CEO Stuart Tanz and team have taken advantage. ROIC is cheap relative to NAV and comparable REIT yields, and also comes with very low leverage. Now that most of ROIC's outstanding warrants have been retired, there should be much less of a damper on the stock. Expect this one to outperform.

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