IIPR Outlook: Changed from Slightly Bullish to Neutral
Late last year in 2019 I was bearish on this stock and rightfully so, however earlier this year my outlook changed to slightly bullish however I have regressed back to a neutral stance (i.e. on hold).
The reason is, is that this stock, along with other stocks, like Beyond Meat, ran up very quickly in 2019 and are now suppressed by shorts and a valuation that really has no basis. IIPR continues to trade at over a 55x P/E which is absurd for essentially a REIT, however, the speculative nature and growth of the company allows it to remain at these levels.
While it looked promising that IIPR may rally on 3 or 4 occasions in the past month, every-time the rally failed and trended back to the 70-75 level and has created similar lows but lower highs. Despite dividend hikes and good earnings reports, the stock has failed to gain any ground.
So what will cause IIPR to rise? It seems like until money flows back into the cannabis sector, this stock will float around from $70-80 level but may not actually 'break-out' for "real" until money returns into the pot sector which may be later in 2020 or perhaps not until 2021.
- zSplit
The reason is, is that this stock, along with other stocks, like Beyond Meat, ran up very quickly in 2019 and are now suppressed by shorts and a valuation that really has no basis. IIPR continues to trade at over a 55x P/E which is absurd for essentially a REIT, however, the speculative nature and growth of the company allows it to remain at these levels.
While it looked promising that IIPR may rally on 3 or 4 occasions in the past month, every-time the rally failed and trended back to the 70-75 level and has created similar lows but lower highs. Despite dividend hikes and good earnings reports, the stock has failed to gain any ground.
So what will cause IIPR to rise? It seems like until money flows back into the cannabis sector, this stock will float around from $70-80 level but may not actually 'break-out' for "real" until money returns into the pot sector which may be later in 2020 or perhaps not until 2021.
- zSplit