SwingTrade Member Forum

[SSKILLZ1]

OHI

I brought a bunch of OHI at around $32.94, here is what I like.

1) Stock only trades at less then 10 times Adjusted FFO. and they have a great track record of growing that number year in year out.

2) Stock has a 7.4% yield but they are a serial raiser yet are paying out nowhere near their AFFO levels. So I expect them to continue their path of raising their divy like a .01 a quarter like they have been on.

Conclusion: I think OHI is a great income producing stock, and I think the stock is very undervalued here. It should trade at least 12 times. And one can make and arguement for closer to 15. But the stock is a good 20-25% undervalued in my opinion, and they pay you roughly 7.5% while you wait. All is just my opinion, and I could always be wrong though.