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Real Estate Operations Stocks, Including General Growth Properties, Making Big Moves on September 11, 2012
The morning has been good for the market. The Nasdaq has climbed 0.3%; the S&P 500 has increased 0.6%; and the Dow is trading up 0.7%.
Underperforming the market overall, the Real Estate Operations sector (IYR) is up 0.1%, and these are its current biggest movers:
Software Summary: Finviz.com Stock Screener
After rising 4.2%, iStar Financial (NYSE:SFI) is currently trading at a share price of $7.95. So far today, the company's volume is 428,901 shares, one times the current daily average. The trading volume for a stock indicates the level of investor interest. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. One of the favorite tools of many value investors is analyzing price/book value ratios, as it provides a measure of the underlying value of a company's assets as compared to the valuation of its equity. The P/B ratio for SFI is 0.47 because the stock is trading for less than its book value. This could mean that either the market believes the asset value is overstated, or the company is earning a very poor (even negative) return on its assets. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Investment Valuation Ratios: Price/Book Value Ratio
At $44.15, Sun Communities (NYSE:SUI) has slipped 3.8%. So far today, the company's volume is 854,662 shares. If a stock price moves on high volume, this means that the change is a significant one. While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. For investors primarily interested in the income a stock can generate, the dividend yield is an important determinant of how attractive a stock is. Dividend yield for SUI is 5.5%. To calculate the dividend yield, divide the level of dividends by the stock price; the higher the yield, the more attractive the security. SEE: Dividend Yield For The Downturn
General Growth Properties (NYSE:GGP) is trading at $19.95 per share, down 3.2%. The company's volume is currently 6.5 million shares for the day, which is more trading activity than there was yesterday. A stock's volume conveys how excited investors are about it. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. The P/S ratio for GGP is 6.96, which is relatively high. This could be a good sign if the share price increases. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
Corporate Office (NYSE:OFC) has risen 2.2% and is currently trading at $23.85 per share. So far today, the company's volume is 314,773 shares. This is 0.7 times its average volume over the past three months. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. A company's value as an investment is more easily estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. The debt ratio for OFC is 65.7%, which is relatively high. This means that the company's cash flow is significantly impacted by paying off principal and interest and that any negative change in performance or rise in interest rates could result in default. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.
St. Joe (NYSE:JOE) is currently trading at $20.46 per share, a 2.1% increase. The company's volume is currently 177,009 shares for the day, consistent with its current daily average. Volume indicates the level of interest that investors have in a company at its current price. A company's investment value can be estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. To a large degree, the debt-equity (D/E) ratio provides another vantage point on a company's leverage position, in this case, comparing total liabilities to shareholders' equity, as opposed to total assets in the debt ratio. The debt-equity ratio of 9% is relatively low. This shows that the company's assets are financed primarily through equity. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
Universal Health Realty (NYSE:UHT) is up 1.2% to reach a current price of $45.13 per share. The company's volume for the day so far is 13,206 shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The capitalization ratio measures the debt component of the capital structure, or capitalization of a company (i.e., the sum of long-term debt liabilities and shareholder equity) to support operations and growth. UHT has a capitalization ratio of 39%. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
LaSalle Hotel (NYSE:LHO) is at $28.45 per share after an increase of 1.1%. So far today, the company's volume is 234,833 shares, on pace to finish the day below yesterday's volume of 740,958 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. The price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. LHO's P/B ratio of 1.49 shows that its share price is higher than its book value. It is important to take the company's debt into account when using the P/B ratio as debt can boost a company's liabilities to the point where they wipe out much of the book value of its hard assets, creating artificially high P/B values. P/B value ratios are particularly useful to value investors, distressed or "vulture" investors, or any other investors purchasing beaten-down securities but are less useful to investors focused on growth stocks, purchasing IPOs, or investing in technology or other "asset-lite" companies. SEE: Using The Price-To-Book Ratio To Evaluate Companies
The Bottom Line The nature of the market is such that stocks will have good days and bad days. It is important to weigh current activity against historical performance when making any investment decisions. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
Underperforming the market overall, the Real Estate Operations sector (IYR) is up 0.1%, and these are its current biggest movers:
| Company | Market Cap | Percentage Change |
| iStar Financial (NYSE:SFI) | $638 million | +4.2% |
| Sun Communities (NYSE:SUI) | $1.22 billion | -3.8% |
| General Growth Properties (NYSE:GGP) | $19.33 billion | -3.2% |
| Corporate Office (NYSE:OFC) | $1.68 billion | +2.2% |
| St. Joe (NYSE:JOE) | $1.85 billion | +2.1% |
| Universal Health Realty (NYSE:UHT) | $565.8 million | +1.2% |
| LaSalle Hotel (NYSE:LHO) | $2.43 billion | +1.1% |
After rising 4.2%, iStar Financial (NYSE:SFI) is currently trading at a share price of $7.95. So far today, the company's volume is 428,901 shares, one times the current daily average. The trading volume for a stock indicates the level of investor interest. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. One of the favorite tools of many value investors is analyzing price/book value ratios, as it provides a measure of the underlying value of a company's assets as compared to the valuation of its equity. The P/B ratio for SFI is 0.47 because the stock is trading for less than its book value. This could mean that either the market believes the asset value is overstated, or the company is earning a very poor (even negative) return on its assets. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Investment Valuation Ratios: Price/Book Value Ratio
At $44.15, Sun Communities (NYSE:SUI) has slipped 3.8%. So far today, the company's volume is 854,662 shares. If a stock price moves on high volume, this means that the change is a significant one. While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. For investors primarily interested in the income a stock can generate, the dividend yield is an important determinant of how attractive a stock is. Dividend yield for SUI is 5.5%. To calculate the dividend yield, divide the level of dividends by the stock price; the higher the yield, the more attractive the security. SEE: Dividend Yield For The Downturn
General Growth Properties (NYSE:GGP) is trading at $19.95 per share, down 3.2%. The company's volume is currently 6.5 million shares for the day, which is more trading activity than there was yesterday. A stock's volume conveys how excited investors are about it. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. The P/S ratio for GGP is 6.96, which is relatively high. This could be a good sign if the share price increases. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
St. Joe (NYSE:JOE) is currently trading at $20.46 per share, a 2.1% increase. The company's volume is currently 177,009 shares for the day, consistent with its current daily average. Volume indicates the level of interest that investors have in a company at its current price. A company's investment value can be estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. To a large degree, the debt-equity (D/E) ratio provides another vantage point on a company's leverage position, in this case, comparing total liabilities to shareholders' equity, as opposed to total assets in the debt ratio. The debt-equity ratio of 9% is relatively low. This shows that the company's assets are financed primarily through equity. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
Universal Health Realty (NYSE:UHT) is up 1.2% to reach a current price of $45.13 per share. The company's volume for the day so far is 13,206 shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The capitalization ratio measures the debt component of the capital structure, or capitalization of a company (i.e., the sum of long-term debt liabilities and shareholder equity) to support operations and growth. UHT has a capitalization ratio of 39%. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
LaSalle Hotel (NYSE:LHO) is at $28.45 per share after an increase of 1.1%. So far today, the company's volume is 234,833 shares, on pace to finish the day below yesterday's volume of 740,958 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. The price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. LHO's P/B ratio of 1.49 shows that its share price is higher than its book value. It is important to take the company's debt into account when using the P/B ratio as debt can boost a company's liabilities to the point where they wipe out much of the book value of its hard assets, creating artificially high P/B values. P/B value ratios are particularly useful to value investors, distressed or "vulture" investors, or any other investors purchasing beaten-down securities but are less useful to investors focused on growth stocks, purchasing IPOs, or investing in technology or other "asset-lite" companies. SEE: Using The Price-To-Book Ratio To Evaluate Companies
The Bottom Line The nature of the market is such that stocks will have good days and bad days. It is important to weigh current activity against historical performance when making any investment decisions. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
by
Investopedia Staff
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