Conclusion, Investment Implications, Strategy
Apartment Investment and Management Company (AIV) appears to be resuming its late March advance following about 10 weeks of sideways investor indecision. A sustained rise above the upper boundary of the indecision area, currently near $38.30, would target an eventual, additional 35% rise to $52.50 per share. This is an Asbury Momentum idea.
Analysis and Rationale
Aimco (AIV) is a real estate investment trust focused on the ownership and management of quality apartment communities located in select markets in the United States. Aimco is one of the country’s largest owners and operators of apartments, with ownership interests in 124 apartment communities in 17 states and the District of Columbia. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV and are included in the S&P 500.
Chart 1 below plots AIV daily since January and shows that price is currently breaking out higher from about 10 weeks of sideways investor indecision from the late March lows. A sustained rise above the upper boundary of the indecision area, currently near $38.30, would target an eventual, additional 35% rise to $52.50 per share.
Chart 1
Table 1 below shows that, considering the aforementioned upside target and a protective stop placed below the $36.86 area, a long entry price of $38.85 would provide a 1:6.9 risk/reward ratio (risking $1.00 to make $6.9) with an initial risk of 5.1%.
Table 1
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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.