Looking for a stock that’s going higher? Try Innovative Industrial Properties ($IIPR)…AGAIN! (January 27, 2020)
IIPR
Let’s look at Innovative Industrial Properties ( NYSE: IIPR ). This is a pot sector stock. They are the ones that buy the land. I look at them like back in the gold rush days when I was a young kid. The guys that made all the money were the hardware stores; the ones that were selling the pickaxes and the gold pans and all that stuff; not the gold miners.
I could go into my feelings about that on the public side with respect to competing against cartels with M16s and all that stuff. I think that it is better in the land investing business than the pot growing business. It has a dividend of almost 4 percent. The cool thing on this was, this is actually on our Growth Stock List; on Thursday night the company reported that they were going to be issuing a secondary offering, I think it was like 3 million shares, I forget and it doesn’t matter, the details are not important until they are and they are not.
The share offering is down here, about $73.00 or something like that. And so you would think that the stock would gap down and keep going as everybody is going, “Oh crap. They think their stock is worth $73.00.” Well, it did gap down and it almost immediately turned up; and so that to me indicated a buying opportunity or in our case an opportunity to add to your position. I think this is another opportunity like right here, right now. The stock traded at 85.17, it has closed right around 85.00.
I think that tomorrow, if the stock runs up above 85.17 it is likely running and going to test 90.00, maybe a bit higher. You could say, “So you’re giving me an idea for a 5 percent move in a stock?” Darn straight I am. Once it gets up here we don’t know whether it’s going to turn around or not. But I like the way that this stock has went under distribution; markdown phase, typical Wyckoff Composite Man stuff (members, you know what I am talking about), and now it has been building a base, a higher base, see a rising line here?
I think if this stock runs up and can break through the 200-day moving average that’s another opportunity to add. And the next thing you know the stock is up at $100.00 and that’s when you are going, “Oh Dan, you told me, as a Free Chart idea, to get in at 85.00. Now I’m up over 15 percent. Hey, do you think it can go higher?” I would say, “Let’s just get to $90.00 first.”
Free Chart