written by reader IIRP….what’s up

By sageisis, July 23, 2019

HI Travis any idea on the punishing of IIRP’s stock price. I get they issued new shares at a lower price than market. the reaction seems severe. wondering if you have any insight?

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Dutta
1 year ago

I realize the comment was for Travis, but here is a quick take. There is a component of the price dropping because of the capital raise as you mention. The rest seems to be because of falling marijuana sector. The next TA point seems to be in the high 80’s range and given earning is not till Aug 7, it’s possible to test this level. Post earnings, hard to say which way the stock will move.

Pricing wise as Travis has been saying, the stock is over-valued (severely). These kinds of businesses can be valued pretty easily (as Travis has done), but this one in particular is acting like a crazy marijuana stock Vs a focused real estate investment trust.

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Travis Johnson, Stock Gumshoe

I’m digging into the IIPR numbers again to incorporate their latest deals and the new equity raise, and will be writing in some more detail on Friday… assuming my portfolio doesn’t change in the interim (if it does, I’ll update you). When I took profits at $134 with about 20% of my position last month, I wrote: “I think IIPR could go to $200 if they lever up with a bond offering as Wall Street loosens up in marijuana, or they could fall to the $50s or $60s if sentiment swings the other way” (the stop loss level, per TradeStops, is about $83, FWIW)

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