IIRP….what’s up

by sageisis | July 23, 2019 1:26 pm

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?

Source URL: https://www.stockgumshoe.com/2019/07/microblog-iirp-whats-up/

  1. Avatar
    Jul 23 2019, 03:56:35 pm

    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.

  2. 12839 |
    Travis Johnson, Stock Gumshoe
    Travis Johnson, Stock Gumshoe
    Jul 23 2019, 04:03:01 pm

    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)

  3. Avatar
    Jul 23 2019, 04:03:03 pm

    thanks for your take valentinoamoro. it is acting like a crazy Marijuana stock when i would like to see more of the plodding REIT performance. nothing like over valuation and a dicey market to get things bouncing.

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