Kimco, a publicly-traded real estate investment trust, has
specialized in shopping center acquisitions, development and
management for more than 40 years, and owns and operates the
nation's largest portfolio of neighborhood and community shopping
centers with interests in 691 properties comprising approximately
102.0 million square feet of leasable space located throughout 42
states, Canada and Mexico.
[Source: Company Press Release]
Reasons to Invest:
Wow! What a difference a week makes. Last week the markets
looked like they couldn't weather any more bad news. While Crude
continues to set record highs, investors managed to push the
markets higher 4 out of the past 5 sessions. A quick look at the
indexes and I am intrigued by the way the DJUSHB Dow Jones US
Home Construction Index has fared over the past week. In fact,
the index finally closed over its 100 DMA in consecutive sessions
for the first time in 4 months. This is generally a good
indication that builders and housing stocks are also going to be
on the rise. For this reason, this week's DOTW is Kimco Realty
Kimco just posted an increase in revenues of 16%, to $270.4
million, and an increase in net income of 26%, or $133.8 million
for the first half of 2004. Not only are these figures
impressive, but KIM also raised its fiscal 2004 guidance to
$3.53/share, which is one cent over expectations of $3.52/share.
Furthermore, they raised their fiscal 2005 guidance to $3.75-
$3.82/share, which is also well above analyst expectations of
$3.74/share. If Kimco can follow through with their estimates,
than we can expect to be happy with our hypothetical investment
in their stock.
From a technical standpoint, KIM's chart looks phenomenal. The
stock has been in an ascending regression channel since October
of 2002. It wasn't until March that the stock broke over the top
bar of this channel, only to fall subject to some hardcore profit
taking in April and May. Since May however, the stock has been
trending back inside of its channel, using its moving averages as
support for higher ground.
The daily/weekly charts note KIM on buy signals for both the MACD
and Stochastics indicator. If the stock can remain inside of its
channel we should be able to see a 3-5 point gain by year-end.
While 3 to 5 points may not be that enticing, our plan isn't to
sell the stock in 4 months. Our initial plan should be to hold
this stock through 2005, and then re-evaluate our position at
that time. Remember, it is important to not only have a plan,
but to trade your plan. Actually every DRIP investor should
remember this phrase, plan your trade, and trade your plan (at
least this tangent is insightful - GRIN).
Did I mention that KIM also has an absolutely amazing Point-and-
Figure chart? Kimco is trending in a Double-Top-Breakout
pattern, with a Bullish price objective of 98.00. Yes, you read
that right, ninety-eight. Do I think that the stock is going to
make it this high? Yes. Do I think that the chances are good
that we will still be enrolled when the price objective is met?
Probably not. If the stock was to remain in its channel until
October of 2008, then we may see the objective met, but this
would require remaining involved in the DRIP for four years, and
more importantly, it would require the stock to remain bullish
for four years. I think the chances of the stock remaining in
the channel are slim to none, especially since the stock has been
in the channel for nearly two years now. Don't get me wrong; I
am hoping to own the stock until it reaches about 75.00, which I
think we could see over the course of the next 2.5-3 years.
Enough with my speculation lets talk dividends! Kimco has a
hefty annual dividend of $2.28/share owned/year, or 4.73 percent.
This ends another exciting episode of the DripAdvisor.com Drip of
the Week. Stay tuned next week, as we will spotlight another
stock worthy of the DripAdvisor.com limelight.
Until Next Week,
Strong Buy 4
Strong Sell 0
Brokers Covering 18
Shares to Qualify = 1
Auto-reinvestment = Yes
Accept Foreign Accounts: No
Temper Enrollment: Yes
Min/Max Investment = $100-$25,000/quarter
Reinvestment Fees -
Dividend investment fees: $0.00
Cash investment fees: $0.00
Auto reinvestment fees: N/A
3333 New Hyde Park Road
New Hyde Park, NY 11042
Phone: (516) 869-9000
Fax: (516) 869-9001