We're Locking in Double-Digit Inflation Gains and Adding to This Aging Population Play
Continued inflation pressures and the senior housing shortage keep us bullish.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
COST | Sell | 22 | $969 | 215 | 3.75% |
WELL | Buy | 155 | $185 | 750 | 2.5% |
After you receive this alert, the Pro Portfolio will make the following trades:
-Sell 22 shares of Costco (COST) at or near $969. Following the trade, the Portfolio will own 215 COST shares, roughly 3.75% of the Portfolio.
-Buy 155 shares of Welltower (WELL) at or near $185. Following the trade, the Portfolio will own 750 WELL shares, roughly 2.5% of the Portfolio.
We are taking advantage of the considerable move in Costco shares over the last few weeks, one that has expanded their presence in the Pro Portfolio to nearly 4.2% of its assets as of Monday night’s market close. That’s a brisk move compared to 3.7% at the end of December. Because we continue to see persistent inflation pressures impacting consumers as well as consumer stockpiling ahead of winter storm Fern benefitting Costco’s forthcoming January sales report, we will retain a sizable position in the shares.
Backing our view on persistent inflation was the following from the Flash January PMI report published by S&P Global:
"The stubbornly elevated level of input cost inflation fed through to a further widespread rise in selling prices for goods and services. January’s rise in average prices charged was slightly weaker than seen in December but still among the largest recorded over the last three years."
That, and other indicators and signals, keep us long COST shares, as does the growing potential for a special dividend payment later this year.
As we lock in a double-digit slice of gains in this slug of COST shares since their pre-Christmas bottom, a move that significantly outperformed the S&P 500, we will repurpose some of the proceeds to build out our Welltower position. There has been no change to the growing pain point that is senior housing, one that is propelled by the aging population.
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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long COST, WELL.
