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Summary

  • Check out this video interview with Stuart Tanz, CEO of Retail Opportunity Investments Corporation.
  • This REIT is as hot as a firecracker and given the CEO’s (Stuart Tanz) drive for success, I suspect ROIC will top $20 by year-end.
  • ROIC is a solid REIT that trades at sound value (P/FFO of 18.1x).

A few weeks ago I wrote an article on Retail Opportunity Investments Corporation (NASDAQ:ROIC). I summed up the article as follows:

ROIC's current share price of $15.93 is trading at a level influenced by the recent S&P 600 induction. I would not recommend buying shares until there is a meaningful margin of safety. I am moving my target BUY price (in my SALSA portfolio) from $14.00 to $14.50. ROIC has become a meaningful player that deserves more shelf space… I knew I should have moved earlier since "you had me at hello".

Admittedly, it may be hard to get your hands on ROIC shares trading under $14.50 (my target price). This REIT is as "hot as a firecracker" and given the CEO's (Stuart Tanz) drive for success, I suspect ROIC will top $20 by year-end. ROIC has a current market cap of around $1.2 billion with a total capitalization north of $1.9 billion. The company now trades at $15.55 with a Price to Funds from Operations (P/FFO) multiple over 18x and a current dividend yield is 4.12%.

Earlier this week, I caught up with Tanz at ReCon 2014 in Las Vegas to discuss his company's first quarter results as well as ROIC's value proposition. You can view this video below:

For more information on ROIC and other REITs in my SALSA portfolio, check out my monthly REIT newsletter HERE.

Disclaimer: This article is intended to provide information to interested parties. As I have no knowledge of individual investor circumstances, goals, and/or portfolio concentration or diversification, readers are expected to complete their own due diligence before purchasing any stocks mentioned or recommended.

Source: An Inside Look At The 'Smoking Hot' Retail Opportunity Investments Corporation