Q: Thank you for your response to my previous question. I still find the issues involved puzzling. Stating the apparently conflicting issues i) while the same store growth is expected to be modest at around 2% the overall revenue growth appears to have been closer to 20% (for 2019) and ii) while analyst share price expectations have been rising notably of late that has occurred in the face of reduced earnings expectations; according to First Call these have been declining modestly but consistently for at least the past year.
The rationale for investing in this company was at least in part based on its competence as evidenced by the share price growth and its participation in an industry sector that offered significant opportunities for growth as a result of substantial sector fragmentation, to which they appear to be willing and able to respond. I subsequently see that COLD also has substantial industry participation both in the US as well as overseas, and promotes its competence in its management and operating systems. I also see that the REIT sector is currently under pressure and, or perhaps despite, that the cost of capital should be low as a result of all time low prevailing rates of interest. The obvious question is whether the current valuation represents a significant entry opportunity for a company which is doing well but still sorting out the bugs resulting from its growing interests. I would be interested in your response.
The rationale for investing in this company was at least in part based on its competence as evidenced by the share price growth and its participation in an industry sector that offered significant opportunities for growth as a result of substantial sector fragmentation, to which they appear to be willing and able to respond. I subsequently see that COLD also has substantial industry participation both in the US as well as overseas, and promotes its competence in its management and operating systems. I also see that the REIT sector is currently under pressure and, or perhaps despite, that the cost of capital should be low as a result of all time low prevailing rates of interest. The obvious question is whether the current valuation represents a significant entry opportunity for a company which is doing well but still sorting out the bugs resulting from its growing interests. I would be interested in your response.
