Orion Office REIT: The Downturn Continues

Summary

  • Orion Office REIT Inc. is a new company formed from the office properties of Realty Income and VEREIT upon their merger.
  • The office sector is currently out of favor, but the need for office spaces will likely increase in the future.
  • The stock price has been dropping, but spinoffs tend to outperform the market over time and the company has potential for long-term success.
  • A conservative balance sheet and management experience should get the company through the near-term challenges.
  • This speculative idea needs to wait until the selling pressure subsides.  It does look like the Orion Office REIT selling is almost done.
  • This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »

Empty CEO Office Interior With Table, Office Chairs, Cabinets And Brick Wall

onurdongel/E+ via Getty Images

Orion Office REIT Inc. (NYSE:ONL) management is forecasting another down year ahead. Real estate, even office real estate is often cyclical. Generally, the time to buy is when the market believes that there is nothing but

Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

This article was written by

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Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA.

He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of O either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I may initiate a position in ONL without further notice. Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation of the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits their own investment qualifications.

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