Monday, June 13, 2011

Regency Centers Corporation (NYSE: REG) Q3 2011 Price Target

Recent price: 41.62$
P/E Ratio: -
3 Months Target Price: 47$

Company Description
According to data provided by Reuters, Regency Centers Corporation is a real estate investment trust. The Company is the managing general partner in Regency Centers, L.P., the Operating Partnership. It focuses on owning, operating and investing in a portfolio of primarily grocery-anchored shopping centers that are tenanted by grocers, anchors, specialty retailers, and restaurants located in areas with above average household incomes and population densities. All of the Company’s operating, investing, and financing activities are performed through the Operating Partnership, its wholly-owned subsidiaries, and through its investments in real estate partnerships with third parties. The Company owns 99% of the Operating Partnership.

Confidence Margins
Strong resistance $47.51 (+14%)
Light resistance $46.65 (+12%)
Light support $41.18 (-1%)
Strong support $39.89 (-4%)

Market movements over the past couple of weeks have driven the company to year-to-date lows. At current price levels however, the dividend yield of the company will serve as a break on the slide in the stock price as it gets more and more attracting.

Entry strategy
For the cautious investor:
Buy the stock for 42$ or less.

For the risk-taking trader:
The October 2011 45$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 155$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 47$.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 47$.

No comments:

Post a Comment