Pure Storage: Underappreciated Growth Story With Growing Subscription Business (NYSE:PSTG)

Pure Storage (PSTG), one of the best All Flash Array (AFA) makers in the industry, is a buy in our opinion as it continues to grow faster than market and is taking share from large incumbents such as NetApp (NTAP), Hewlett Packard Enterprise Company (HPE), Dell (DELL) and IBM (IBM). Yet it is unloved and underappreciated by investors. Customers, however, love Pure Storage’s products (a high Net Promoter Score of 86 confirms the affection) and Gartner and other third party independent analysts also consider the products some of the best in the industry. Despite reporting solid results and issuing positive commentary when Pure Storage last reported results on May 29th, the stock has languished. Given our confidence in its continued ability to take share, out-execute its larger rivals by launching quickly and efficiently products based on newer NAND flash geometries, compelling valuation, and a potential for a catchup trade, we would be buyers of the shares.

Pure Storage has one of the best portfolios in the industry

Pure Storage, despite having one of the best and modern product portfolios in the industry, continues to underperform the broad tech market. Many investors we spoke to believe that majority of the new storage capacity is going to be deployed in cloud and on-premises storage growth is likely to continue to decline. While we agree that majority of the growth will likely be coming in the cloud, a significant portion of workloads (more than 50%) will still continue to remain on-prem. Much of the on-prem storage infrastructure is still based on old spinning hard disk drive technology which is slow and inefficient.

Enterprises are upgrading their existing storage infrastructure with newer and modern data arrays that are based on NAND flash. The newer storage arrays are smaller, consume less power, are less noisy and do not generate excess heat in the data center and hence do not need to be cooled. Flash storage arrays in general are cheaper to operate and are extremely fast, speeding up applications. Pure Storage by all accounts makes the best storage arrays in the industry and continues to grow faster than major storage vendors such as NetApp, Dell, HPE and IBM.

According to Gartner, Pure Storage’s market share was 12.7% in C1Q20 and was up from 10.1% in the prior year. HPE, NetApp and IBM lost share. According to blocksandfiles.com, AFA vendor market share sizes and shifts are paraphrased below:

  • “Dell EMC – 34.8% (calculated $766m) vs. 33.7% a year ago
  • NetApp – 19.3% at $425m vs. 26.7% a year ago
  • Pure Storage – 12.7% at calculated $279.7m vs. 10.1% a year ago
  • HPE – 8.4% – $185m vs. 10% a year ago”

Pure has been gaining share almost every year since it began selling storage arrays in 2011. According to Gartner, Pure Storage is consistently rated the highest for the completeness of vision as the following chart illustrates.

Source: Gartner

Investors are concerned storage is in secular decline

Investors we spoke to are concerned that storage is in a secular decline due to workloads moving to public cloud vendors such as Amazon Web Services (AWS), Microsoft Azure Services (MAS) and Google Cloud Platform (GCP). Investors seem to think that storage companies such as Pure Storage will likely have their business decimated by the movement of applications to public cloud. While Cloud is certainly making the growth of on-prem storage to slow, the impact is mainly being felt by larger incumbent vendors such as Dell, HPE, NetApp and IBM. Each of these companies saw their storage revenues decline last three to four years, given many customers think their products are somewhat inferior to Pure’s products. However, Pure Storage has the distinction of growing its revenue in each of last 9 years.

What are Pure Storage revenue drivers

Pure has products to address the growth of Cloud storage as well as products to drive the growth of on-prem storage. For on-prem data center, Pure sells Flash Array to address block storage workloads (for databases and other mission-critical workloads) and FlashBlade for unstructured or file data workloads. On-prem storage revenue is mainly driven by legacy storage array replacement cycle.

In addition, the company also sells subscription products such as Pure-as-a-service and Cloud Block Store. Enterprises buy storage from vendors such as NetApp or Pure in the cloud to prevent vendor lock-in by the cloud providers.

Despite double-digit revenue growth, Pure Storage underperformed the market

Despite reporting solid results both in F4Q20 and F1Q21, Year-to-date (YTD), Pure Storage is only up around 2%, while the Nasdaq is up around 17% and the SOX Index is up nearly 11%.

Source: Yahoo Finance

Pure Storage is currently trading at 1.9x EV/C2021 sales versus NetApp that is trading at 1.6x. While Pure Storage is expected to grow around 16%, NetApp is only expected to grow around 2%. The following chart illustrates valuation of hardware peer group.

Source: Author based on Thomson Reuters Data

Source: Author based on Thomson Reuters Data

Guidance and estimates

Pure Storage has a history of beating estimates and guiding up. Over the last 20 quarters, the company beat revenue 17 quarters by an average of $4.9 million or about 3%. Out of the three times that the company missed on revenues, once was due to supply constraints at one of its distributors and the other two times were due to Average Selling Prices (ASP) declining faster than the company forecasted. Higher-than-expected ASP declines (due to NAND oversupply) is one of the risks of the storage business. The following chart illustrates Pure Storage’s performance on meeting its outlook.

Source: Author based on Thomson Reuters Data

After the company reported F1Q21 (April quarter) results, the company did not provide formal guidance for F2Q21 (July quarter) citing lack of visibility into its pipeline and potential deal closings. Pure Storage also withdrew its full-year guidance, citing increasing uncertainty with macro and loss of visibility into deal closings. However, the company commented that the “sales will be near flat year-over-year and operating profit will be near break-even” and cautioning investors that these comments should not be construed as formal guidance. Given the aforementioned comments, the Street is forecasting revenue to be around $396 million, essentially flat year-over-year, and EPS of a penny. We believe this guidance is conservative and is more than achievable.

A number of companies such as Micron reported recently better-than-expected results and also provided guidance that was ahead of estimates. Given this and our belief that storage is less discretionary than many on the street agree, we believe Pure Storage will likely beat estimates when it reports results on August 19th. We also expect the company will desist from providing formal guidance given the uncertainty surrounding the opening of the economy following COVID-19. Since we believe storage is less discretionary than what many people believe, we are incrementally more optimistic on Pure Storage’s outlook. Therefore, our revenue and EPS estimates are ahead of consensus. Here is the chart of our estimates, when compared to the consensus.

Source: Author from Thomson Reuters Data

Risks to owning the stock

Pure Storage competes with some of the stalwarts of technology industry such as NetApp, Dell-EMC, Hewlett Packard Enterprise, IBM, Hitachi, etc. These companies control vast distribution networks, have incumbency with many of the biggest storage spenders in the industry, and have strong balance sheets. All of the aforementioned companies also generate solid cash flow from operations and are plush with cash. Time and time again, these large companies have resorted to cutting the price of their products and even selling the products at a loss to lock up certain strategic customers. Many of these large companies also use bundling (i.e. bundle servers along with storage) to foreclose opportunities for smaller competitors. Prolonged and indiscriminate price war within the storage industry could have a negative impact on Pure Storage’s revenue and earnings. Any shortfall in revenue and profits due to price wars or other bundling techniques could lead to a stock sell-off.

Pure Storage buys raw NAND flash from OEMs such as Micron, Hynix and Samsung. The cost of NAND is dictated by supply-demand dynamics within the industry. During 2019, rapid NAND price declines impacted revenue and margins for the company. The price declines were abrupt and violent and Pure Storage’s ASPs declined faster than what the company was forecasting at that time. Historically ASPs for storage products declined in high single-digits (around 8-9%) year over year. However, during the early part of 2019, ASP declines were in mid-teens impacting revenue and margins.

During the times of supply constraints, NAND Flash OEMs first choose to sell available NAND to their larger customers such as Dell/HPE/Apple, etc. before Pure Storage could get some supply. In those instances, Pure Storage would need to buy supply of NAND on the open market at a higher price. While the company can pass along some part of higher NAND cost to customers, it is not always possible for the company to recoup lost profits. Therefore, Pure Storage is at the mercy of its large suppliers of the storage components.

Macro and management execution are always a major risk for most companies that have a fairly large perpetual/Capex based revenue streams. Pure Storage derives a majority of revenues by selling storage boxes, which are a capex line item for most enterprises. VMware’s quarters are usually back-end loaded – i.e., a significant portion of the business closes during the last two weeks of the quarter. Any deal slippage for any reason during the last weeks of the quarter could impact revenue and earnings, leading to a stock sell-off.

How to invest in the stock

Since the company reported results on May 29th, the stock is down 3% and has underperformed the market. The company is expected to report results of F2Q21 on August 19th. We expect Pure Storage to report results largely in line to ahead of Street estimates and issue commentary that is likely positive. We believe any positive commentary on the subscription business and pure-as-a-service offering will be favorably viewed by professional investors. It is highly probable that Pure Storage may not issue formal guidance for the October quarter, but may issue qualitative comments like it had done for the July quarter. Since we are fairly confident on the company’s longer term prospects and the strength of product line, we would be buying ahead of company’s results. For some unforeseen reason, if the stock sells off, we believe it provides an even better buying opportunity. We would be backing up the truck and buying more shares.

Net-net, given that the company is considered one of the best new age data storage companies in the industry, and due to reasonable valuation, we would be buying shares of the company on any dips. In the event the company misses estimates or the stock sells off due to other macro factors, we would urge investors to double down and buy more.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.

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Money Supply Growth In May Again Surges To An All-Time High

By Ryan McMaken

Money supply growth surged to another all-time high in May, following April’s all-time high that came in the wake of unprecedented quantitative easing, central bank asset purchases, and various stimulus packages.

The growth rate has never been higher, with the 1970s the only period that comes close. It was expected that money supply growth would surge in recent months. This usually happens in the wake of the early months of a recession or financial crisis. The magnitude of the growth rate, however, was unexpected.

During May 2020, year-over-year (YOY) growth in the money supply was at 29.8 percent. That’s up from April’s rate of 21.3 percent, and up from May 2019’s rate of 2.15 percent. Historically, this is a very large surge in growth both month over month and year over year. It is also quite a reversal from the trend that only just ended in August of last year, when growth rates were nearly bottoming out around 2 percent. In August, the growth rate hit a 120-month low, falling to the lowest growth rates we’d seen since 2007.

The money supply metric used here – the “true” or Rothbard-Salerno money supply measure (TMS) – is the metric developed by Murray Rothbard and Joseph Salerno, and is designed to provide a better measure of money supply fluctuations than M2. The Mises Institute now offers regular updates on this metric and its growth. This measure of the money supply differs from M2 in that it includes Treasury deposits at the Fed (and excludes short-time deposits, traveler’s checks, and retail money funds).

The M2 growth rate also increased to historic highs in May, growing 23.09 percent compared to April’s growth rate of 18.01 percent. M2 grew 4.2 percent during May of last year. The M2 growth rate had fallen considerably from late 2016 to late 2018, but has been growing again in recent months. As of March, it is following the same trend as TMS.

Money supply growth can often be a helpful measure of economic activity. During periods of economic boom, money supply tends to grow quickly as banks make more loans. Recessions, on the other hand, tend to be preceded by periods of slowdown in rates of money supply growth. However, money supply growth tends to grow out of its low-growth trough well before the onset of recession. As recession nears, the TMS growth rate climbs and becomes larger than the M2 growth rate. This occurred in the early months of the 2002 and the 2009 crises. February 2020 was the first month since late 2008 that the TMS growth rate climbed higher than the M2 growth rate. The TMS growth rate again exceeded M2 in March and April 2020. As of mid-April 2020, it does appear that the decline in money supply growth has again preceded a recession. Although some observers will likely claim that the current economic crisis is a result solely of the COVID-19 panic and resulting government-forced shutdowns, several indicators do suggest that the economy was primed for a recession. The decline in TMS is one of these indicators, as is the late 2019 liquidity crisis in the repo markets. The Fed’s moves to drop interest rates and to once again grow its balance sheet speak to the weakness of the economy leading up to April 2020.

After initial balance sheet growth in late 2019, total Fed assets surged to over $7 trillion in June, setting a new all-time high and propelling the Fed balance sheet far beyond anything seen during the Great Recession’s stimulus packages. The Fed’s assets are now up more than 680 percent from the period immediately preceding the 2008 financial crisis.

While Fed asset purchases are not solely responsible for the surge in new money creation, they are certainly a sizable factor. Bank loan activity has surged as well, also driving new money creation.

In terms of total dollar amounts now extant, the overall M2 total money supply in May was $17.9 trillion, and the TMS total was $17.4 trillion. This is an increase of $4.0 trillion in M2 and $3.3 trillion in the TMS.

Disclosure: No positions.

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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.

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Credit Suisse aims for 100% of securities venture in China growth plan By Reuters

© Reuters. FILE PHOTO: Logo of Swiss bank Credit Suisse is seen in Zurich

By Brenna Hughes Neghaiwi, Oliver Hirt and Scott Murdoch

ZURICH/HONG KONG (Reuters) – Credit Suisse (S:) wants to raise its China securities joint venture stake to 100% and increase its market share after getting the regulatory green light to take a majority holding, the head of its Asia business said.

Switzerland’s second-largest bank is also looking to hire more staff and invest in China, the world’s second-biggest economy, as its most significant business opportunity in the world, its APAC boss Helman Sitohang told Reuters.

China has gained in relevance for Credit Suisse and other international banks after Beijing fast-tracked the opening of its financial markets to foreigner investors.

After gaining 51% control of its securities joint venture in June and appointing Janice Hu as chairwoman, Credit Suisse aims to take on full ownership from Founder Securities as it seeks to build out its private and investment banking businesses.

Credit Suisse has placed great faith in Hu, a “veteran investment banker” who has been with it for almost two decades, to grow its business in China, where the timing of it gaining full ownership of the venture is in the hands of regulators.

The bank did not disclose the value of the joint venture.

While it does not break down its business by individual markets, Asia-Pacific accounted for roughly one-fifth of its overall pre-tax income in 2019, with Greater China its most important market in the region.

The bank ranks second in M&A advisory fees in Asia, excluding Japan, with a 9.3% market share, and second in investment banking fees, with a 4.6% share, Dealogic says.

In Asia-Pacific Credit Suisse not only competes with larger Zurich rival UBS (S:), but also with other Swiss private banks including Geneva-based Pictet and listed lender Julius Baer (S:) for wealth management business. Meanwhile in investment banking, Morgan Stanley (N:) and JPMorgan (N:) are both major competitors, while Chinese investment bank CITIC Securities counts as a key rival in Asia.

China is producing the most new billionaires and Credit Suisse last month hired a new head of wealth management for onshore China, Jing Wang, from China Merchants Bank.

This followed two senior appointments this year for prime sales, and Credit Suisse is now looking to fill other key positions for its Chinese business over the next few months. “We will continue to invest across our platforms in China and closely integrate our onshore operations with our businesses in Hong Kong and across the region. There will be more hires, some of which we will announce shortly,” Sitohang said.

“It is clearly about tactical hiring: We want to capture opportunities. We know exactly where these are, where we see the potential to improve, and that is what we are focused on,” the Singaporean native said from his office in Singapore.


Hong Kong’s future as a global financial centre has been under scrutiny after the mainland Chinese government last month introduced tough new national security laws for the city.

Some analysts suggest investors could shift money to other offshore hubs, like Singapore, to cushion the impact of the growing political and economic uncertainty.

Sitohang reiterated Credit Suisse’s commitment to Hong Kong and said it had not registered any outflows.

“Hong Kong has been an important hub for Credit Suisse for decades … (and) there will be no changes to our presence,” Sitohang said, adding that it was an “integral part of our footprint for China overall”.

As well as its role in the largest equity capital markets deal in Hong Kong last year with Alibaba ‘s (N:) secondary listing, Sitohang said Credit Suisse did another recently for Netease, (O:) which was about $2.8 billion, as well as “a couple of large bond deals”.

Credit Suisse has increased the money it manages in the Asia-Pacific region by around a quarter over the last three years to 220 billion Swiss francs ($233 billion) at the end of 2019 before a drop to 197 billion francs in the first quarter due to the coronavirus crisis.

Although ties to Luckin Coffee (OTC:) — from whose chairman Credit Suisse is seeking to recoup a more than half-billion dollar loan along with five other banks — increased the Swiss bank’s first quarter provisioning for loan losses, Sitohang is not put off. Credit Suisse would stick by its strategy of acting as a “bank for entrepreneurs”, managing both the private wealth of rising business people as well as benefiting from their corporate activities through its investment bank, he said.

($1 = 0.9434 Swiss francs)

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Macro Backdrop Signals Slowing Global Growth: Russo

When investors talk about “the market” they have to broaden their view of what the market is – in other words, it is more than the 500 stocks on the S&P, Dan Russo, CMT, chief market strategist at Chaikin Analytics told Real Vision during today’s Daily Briefing.

Russo said that different trends are happening across different markets and that investors should consider what is outperforming as well as what is fading on a relative basis. In some sectors, he said, it makes sense to take it down to the industry level. For example, in the healthcare sector we’re seeing biotechnology on fire while pharma languishes.

“Relative strength is important both from an equity standpoint and a bigger picture asset allocation standpoint,” he said. “You should skew your portfolio toward what’s outperforming.”

One asset class Russo takes cues from is the ratio of copper to gold. From a macro standpoint, the fact that copper has been lagging gold is a signal of slowing global growth because copper is so widely used throughout the global economy. If global growth was strong, he argued, copper would be outperforming gold. And while that relationship has been in place for a while, COVID has accelerated the slowdown to the downside.

Overall, Russo said the macro trends he’s looking at are slower demand, lower growth, and rising inflation and that those things could be the catalysts for insolvency for highly levered companies, but as long as the S&P is above 3,000, he thinks you can be invested in equities.

The question is, which equities? Russo said to go where there is growth. He believes the market can work higher led by growth companies like Amazon and that it makes sense to fade reopening stocks like airlines, energy, and banks.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.

Additional disclosure: This is pretty obvious, but we should probably say it anyway so that there is absolutely no confusion… The material in REAL VISION GROUP video programs and publications (collectively referred to as “RV RELEASES”) is provided for informational purposes only and is NOT investment advice. The information in RV RELEASES has been obtained from sources believed to be reliable, but Real Vision and its contributors, distributors and/or publishers, licensors, and their respective employees, contractors, agents, suppliers and vendors(collectively,”Affiliated Parties”) make no representation or warranty as to the accuracy, timeliness or completeness of the content in RV RELEASES. Any data included in RV RELEASES are illustrative only and not for investment purposes. Any opinion or recommendation expressed in RV RELEASES is subject to change without notice. RV Releases do not recommend, explicitly nor implicitly, nor suggest or recommend any investment strategy. Real Vision Group and its Affiliated Parties disclaim all liability for any loss that may arise(whether direct, indirect, consequential, incidental, punitive or otherwise) from any use of the information in RV RELEASES. Real Vision Group and its Affiliated Parties do not have regard to any individual’s, group of individuals’ or entity’s specific investment objectives, financial situation or circumstances. RV Releases do not express any opinion on the future value of any security, currency or other investment instrument. You should seek expert financial and other advice regarding the appropriateness of the material discussed or recommended in RV RELEASES and should note that investment values may fall, you may receive back less than originally invested and past performance is not necessarily reflective of future performance.Well that was pretty intense! We hope you got all of that – now stop reading the small print and go and enjoy Real Vision.

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HOMZ And W. P. Carey Offer Growth Through Real Estate

The stellar publication The Economist brings gravitas to the real estate investment sector, despite the world still grappling with the pandemic and the recession it birthed. Its lead story for July declares:

The house wins–America’s housing market is so far unfazed by recession…Residential property-worth $35trn, slightly more than America’s stockmarket (sic)-seems strangely oblivious to the economic carnage around it.

Hitherto, real estate has not been among my picks of essential industries in an environment of crisis management investing. But taking a hint from The Economist, W. P. Carey, Inc. (NYSE:WPC) is worth strong consideration by retail value investors. A smaller company in the sister sector of real estate is Hoya Capital Housing (HOMZ) that I previously recommended. Know the former is an ETF and WPC a REIT.

Consider the Bigger Picture

Encouraging employment data have been forthcoming in recent labor reports. Doctors are sharing comforting reports about treatments, cures, and vaccines on their way. Equities markets are bouncing back. Following steep declines, real estate equities surged in the first week of July with all 18 property sectors in positive territory. Housing is back leading in the early stages of the economic rebound comparable to the big bump last May.

Another factor inter alia for considering HOMZ and WPC as worthwhile, long-term investment opportunities, is this generation is on the cusp of the greatest transfer of wealth in the history of the world. PNC predicts:

About 10,000 boomers turn 65 each day. The aging boomer population means that an estimated $59 trillion of wealth will be passed down to millennial children and heirs.

They are certain to spend some money on consumer goods, electronics, tech, and fashion, helping stimulate the economy. Lots are likely to be invested in real estate and the stock market. Millennials were already aggressively buying houses before the virus shutdowns. “The American dream of homeownership is still very much alive,” writes Frederick Peters in Forbes. The homeownership rate topped 64% when mortgage rates stood at 3.8%. They are now at just above 3%. My father’s mortgage rate in 1954 was over 4%. Improving economic conditions are a healthy portent for HOMZ.

Source Seeking Alpha

HOMZ Means Homes: Betting on Residential

The HOMZ stock price impressively fought back up after the March plummet. The price continues climbing into mid-year trading despite political turmoil, international fears of cyberwars, shooting wars, food hoarding, and recession. HOMZ is a relatively young company scrambling to attract investors. The lockdowns and economic headwinds helped suppress the HOMZ share price and volume of trade but the stock price is climbing back. Contrastingly, the share price is characterized by low volatility offering comfort to risk-averse investors looking for a safe harbor right now.

Source: Seeking Alpha

Over the long term, HOMZ enjoys momentum potential as a stable investment because:

  • Millennials will inherit money they likely will use to buy houses and HOMZ is heavily invested in homebuilders
  • Staying single longer means a healthy market for residential rental properties and property management with HOMZ invested in residential property management companies and home centers
  • Home improvement companies are seeing their shares rocket to 52-week highs
  • The states‘ millennials are reportedly considering to live off lower price housing thus spurring the potential for ETF investment growth

A downside to owning HOMZ is there are no surprises or exciting news that will gin up the share price. The buyout potential of HOMZ is nil. It will grow through organic growth and better marketing the ETF to more investors. Perhaps it is time for management to show some flexibility, too, with share prices down in some related sectors that appear to be better investments beyond homebuilders?

Hypothetical $10,000 Investment as of 05.31.2020

Growth Chart

Source Fidelity

W. P. Carey: Mature but with Warnings

WPC share price is midway between its 52-week low of $38.62 and high at $93.62. The dividend yield tops 6%. WPC is a mature $16B company. WPC is largely into industrial commercial and office spaces but demand for office spaces is expected to contract 17-30%. The industrial sector is expected to do better with more manufacturing returning to the U. S. The W. P. Carey company is one-quarter each into industrial properties, offices, and warehouses; then comes storage facilities and others.

Company holdings are two-thirds in the U.S. One-third of their holdings are in Europe. The remaining 2.1% are elsewhere. If WPC is able to forefend the devastating fall-out the virus has on retail and entertainment properties, earnings are forecast to grow nearly 32% per year. This will be the impetus for a rise in the share price closer to its former high for the year.

Source W. P. Carey

Through Q1’20, the share price was not volatile, but since then, the share price has bounced around between the low $50s crawling up to its current price ~$68. An investor might wait for another dip before plunging into a buy mode. The share price might soften going forward as the company sells $330M worth of 4.75M shares to pay down parts of its $1.8B unsecured revolving credit. Currently, interest payments are not comfortably covered by company earnings. Profit margins once topped 40% but today are nearer 25%. The +6% dividend might be a red herring, for debt troubles, profit deterioration, and share price dilution lie ahead? WPC’s debt seems manageable if anticipated growth forecasts bear out.

Source: Simply Wall Street

Think Long on Both HOMZ and WPC

Real estate investing is always in style for the rich. That’s certainly true for the wealthy people I know on three continents. Diversification is the key to cash flow and success. Investing in HOMZ gives access to residential markets. WPC gives access to the industrial, warehouse, and office markets in the U.S. and Europe. The COVID-19 storm is wreaking havoc on retail and their landlords but investors in HOMZ and WPC are more insulated from this segment. Their income generation is strong and potentially this will be reflected in their share prices. At the very least, the share prices of the ETF and REIT are less sensitive to volatility than other stock investments. I recommend waiting for WPC to dip again into the low $60s and HOMZ below $25. Then, buy and hang on until there is a vaccine. Property values traditionally rise over time offering a natural increase in the assets of HOMZ and WPC because like Will Rogers said they ain’t making more of it.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.

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