Room to run for Real Estate?

Featuring Kevin Kelly

Kevin Kelly, managing partner at Benchmark Investments, is utilizing optionality for a unique play on warehouse giant, Prologis. In this interview with Brian Price, Kevin says E-Commerce will drive greater demand for the real estate solutions offered by Prologis. Filmed on July 16, 2018.

Published on
19 July, 2018
Topic
Micro, US Economy, Trading
Duration
12 minutes
Asset class
Real Estate, Equities
Rating
29

Comments

  • DR

    David R.

    23 7 2018 17:45

    0       0

    No comment on his Prologis call but I would sell short anyone who speaks in that fashion. Wreaks of overconfidence. Hope he does well though.

  • RS

    Rajesh S.

    21 7 2018 02:05

    1       0

    How can a stock have stable cash flows as well as stock price being steady and yet have high premium for call options.

  • BM

    Beth M.

    20 7 2018 18:44

    1       1

    Nice socks!

  • NI

    Nate I.

    20 7 2018 01:48

    2       0

    I've owned Prologis for approximately 20 years. You could say that I've followed it for a day or two :-) It's a bit expensive here at my estimate of 1.5 times tangible book. If your macro outlook is for much higher interest rates, then I believe you can safely sell that $70 call and I wouldn't incur the losses on the underlying - just use a $70/$75 spread to limit upside losses if you're wrong. On the other hand, the stock could easily exceed $70 if rates come down. Rates are the key driver IMO.

  • lb

    larry b.

    19 7 2018 22:53

    0       1

    looks pretty volatile to me. big down move 3 days ago.