Profiting from the Aging of America

Featuring Peter Boockvar

Peter Boockvar, Chief Investment Officer at Bleakley Advisory Group and editor of the Boock Report, discusses the opportunity he sees in healthcare-focused REIT HCP. He explains why demographic shifts could benefit the company in this interview with Justine Underhill. Filmed on May 7, 2018.

Published on
11 May, 2018
Topic
US Economy, Trading, Micro
Duration
10 minutes
Asset class
Equities
Rating
17

Comments

  • DF

    Daniel F.

    15 5 2018 14:30

    0       0

    HCP (27)is actually the most expensive as compared to Vantas and Welltower(both 20). The rerating might actually be downward..?

  • CV

    Cesar V.

    13 5 2018 23:18

    1       0

    Beware of tips. "A man who relies on tips to get in, must rely on tips to get out..."

  • CM

    Chris M.

    13 5 2018 01:55

    1       0

    I love the idea behind this trade. So I looked at the technicals and on a 10 yr weekly, I like the oversold condition, crossing over on the rsi, and mfi. Price action had consolidation and recently double bottomed and broke trend. So I will be going long with LEAPS Jan 2019 27.5 C. Great interview, thanks for the idea!

    https://twitter.com/pockets2567/status/995481834334105602?s=21

    Chris

  • NI

    Nate I.

    12 5 2018 14:24

    6       0

    Have to disagree on this one. Healthcare is a good space with a stellar demographic tailwind, but HCP is just another insanely indebted US company that will struggle with rising rates. $13.6B in property and $8B in debt. Effective interest rate of 4.20% and a weighted average maturity of six years on that debt mountain. No thanks - not until someone can tell me who is going to buy the ocean of sovereign bonds flooding the market. Call me at $11 per share.

  • ZP

    Zachary P.

    12 5 2018 09:34

    0       0

    Is HCP not intending to dispose of additional senior living assets and focus on the other areas of their portfolio? Also, the multiple expansion is based on a 16x P/FFO for "more healthy areas of real estate" meaning?? The health care REIT average is below 12.

  • CB

    Chris B.

    11 5 2018 21:56

    0       0

    Boomer generation most unhealthy generation ever, combine with medical innovation keeping even the unhealthiest living longer set's up bigger demand then is really being appreciated especially within Acute and Sub-Acute Rehab facilities.

  • KJ

    Kulbir J.

    11 5 2018 14:11

    48       8

    Dear Real Vision,

    Please listen to the community and change the music. Something more mellow rather than the war style music would be greatly appreciated.

    Apart from that, loving the content!

    • MS

      Michael S.

      12 5 2018 06:08

      18       0

      Or at least mix it down about -5 db so I don't have to remix it on my end, with my hand on the volume at the beginning of every one of these "Trade Ideas" videos.

    • ZY

      ZHENG Y.

      12 5 2018 12:09

      5       0

      especially when i always play the video at 7am!

  • BT

    Brian T.

    11 5 2018 12:27

    8       0

    Clearly a credible guy. IMHO, you have to be bullish bonds near term to buy this stock as a short-term "re-rate" trade. 6% yield is attractive though. If long term rates rise more, this instrument will decline in price in all likelihood, or at least put in a lower low. Many macro services RVTV has on are bearish bonds (e.g., MSA). Lots of conflict in the market between bulls and bears, guess that is why the market is so choppy in virtually every instrument. Turns (if this is one) are always difficult.

    • RS

      Ronan S.

      11 5 2018 14:20

      6       0

      Hi Brian,
      Thanks for your insight- I found this to be a really interesting idea especially in line with RVTV's recent video on the impending retirement crisis. I don't know much about REITs in that they can be fairly leveraged at the best of times. HCP is currently leveraged 2.70x with about 16% of its debt at a floating rate ( about 3.49% of this floating rate debt is hedged by swaps). I think in the short term, the tightening environment is going to be a drag on HCP just for the exact nature of being a high yielding stock but in the long term (much longer than Peter's investment horizon) I can see this being a great pick for the reasons Peter pointed out. I would be jumping at this perhaps after a correction in the market

    • BT

      Brian T.

      11 5 2018 19:35

      9       0

      Ronan - totally agree with you, I put it on my watch list, would love to pick it up for 10-15% yield in the next bear market which I suspect is 6-24 months away....