If you’re looking for a bull market, try storage facilities.
Most people barely notice their huge buildings as they pass them on their daily commutes…
But I’ve learned what they really represent, both in their assets and income streams.
These companies are parking places for land and real estate.
For raw land, they make for easy setups that can be taken down if and when the owner has a better use or for a sale.
And for urban settings, buildings can be easily converted for storage and can be reversed with relative ease.
This makes storage facilities an ideal way to generate cash flow from real estate while it is idle.
Passing Along Profits
Then, there are the income streams. Self-storage is in demand in up and down economic times.
In tough times, folks need to move or are forced to move, creating the need to store stuff.
In good times, we all get more stuff and need a place to keep it.
Set up as real estate investment trusts (REITs), these self-storage companies own real estate and pass the profits along to investors.
In fact, they’re required to pay out at least 90% of profits in the form of dividends.
This combination makes these companies good for nearly all economic and market times.
And if you look at the trading of the leaders in this segment over the past weeks, the personal storage sector market is booming right now.
Storage Showing Strength
The overall market has been terrible for the last few weeks, with many stocks well off of their highs.
But someone forgot to tell storage stocks to come down.
Extra Space Storage Inc. (EXR), Life Storage, Inc. (LSI), Public Storage (PSA) and several others are all making new all-time highs.
Just take a look at their charts below…
Right now, most of these stocks look extended.
They need to consolidate a bit and create a low-risk entry point before I’ll consider taking a position.
But keep them on your radar.
Stocks showing strength in a weak market are usually good bets for the next wave higher.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
