Stock to Sell #1 – Alexandria Real Estate Equities (ARE)
Alexandria Real Estate Equities (ARE) is a real estate investment trust (REIT) that focuses on office and laboratory space, which are dependent upon a strong economy and government spending — two negatives. Additionally, ARE has over 2.1 million square feet of new space under construction or development at a cost of $1.4 billion — an enormous risk. If the economy stumbles, this REIT will probably have to cut its $2.72 annual dividend (4.2% yield).
Technically, ARE is in a bear market. It triggered a death cross (long-term sell signal) in June, fell through its 200-day moving average and failed to regain it during a rally in July, and issued a sell signal from our proprietary internal indicator, the Collins-Bollinger Reversal (CBR), in September. Sell ARE at the market.