Join        Login             Stock Quote

Readers' Mailbox: What We Think About NNN, LULU, LCC, FDO, And DLTR

 May 14, 2012 12:59 PM

(By Rich Bieglmeier)

Hi Rich, what's your take on NNN? I've read quite a bit of good stuff about it.



Ron, since you have brought NNN to our attention, we have read a lot of good stuff about it, too.

National Retail Properties, Inc. (NNN) is Real Estate Investment Trust (REIT) that focuses on single tenant net lease retail properties with $3.4 billion total assets, with 1,422 properties in 47 states across 37 industry classifications.

The company has increased dividends 22 years in a row and a 15 year average total return of 11.8% for investors, including 14.9% for the past decade. Currently, National Retail Properties yields a healthy 5.6%.

[Related -Family Dollar Stores, Inc. (FDO): More Headwinds Than Tailwinds In Near-Term]

On a last 12 months funds from operations (LTM FFO) standpoint, NNN payout ratio is 97.15%, which is normal as by law, REITs have to return 90% of their taxable income to shareholders. There is one small issue that did catch our eye, the company's year-over-expenses increased by more than 20%; however, that was more than offset by a 28% increase in rental income.

iStock sees NNN as long-term, low beta holding for investors interested in above average dividend yields. The stock is flirting with a 52-week high, so, patience might be rewarded with a little better entry point.

Ledger for Charlotte North Carolina asks about LCC, LULU, FDO, and DLTR.

[Related -Lululemon Athletica inc. (LULU): Near-Term Risks Could Further Derail Investor Confidence]

The sector chart for airlines looks ready to outperform going forward, which means US Airways Group, Inc. (LCC) should do well. Additionally, the fall in oil prices is a positive for the cost side of the business.

Fundamentally, airlines' numbers tend to be messy and weighed down by debt making, valuation look cheaper than they might actually be. US Airways is no different with a whole lot more debt than equity.

LCC has busted out on declining volume, not a combination iStock likes. Additionally, we are a little worried about the state of the economy. If GDP falls off as many are predicting, Airline stocks could suffer. If we owned the stock, we would hang on to it with trailing stops; however, we would not initiate new positions at the current level.

LCC Technical Chart - 05/14/2012

The iStock technical outlook for the clothing sector is turning bearish, which is evident in Lululemon Athletica Inc.'s (LULU) chart.

Next Page >>12
iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageThe Soda Industry Is Dying - But PepsiCo Will Thrive

Although diet crazes come and go, one trend has become clear: Americans are drinking less soda. Per-capita read on...

article imageDefensive Sectors Lead Hesitant Market, But Traders Honor Long-standing Bullish Support

Last week, the major indexes fell back below round-number thresholds that had taken a lot of effort to read on...

article imageWill Janet Yellen's Outlook Prevail?

Federal Reserve Chairwoman Janet Yellen told the crowd last week that rate hikes are coming. The rise will read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.