ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

Wheeler REIT(WHLR) stock price just melted: Buy the dip?

By: Invezz
Wall Street New York United States

Wheeler Real Estate (WHLR) stock price has crashed to a record low as concerns about the company’s future continue. The REIT’s shares plunged to a low of $0.4156 on Tuesday, down by over 99.9% from the highest point during the pandemic. At its peak at $131.87 in 2017, meaning that its total market cap has fallen from over $133 million to $4 million.

The collapse of Wheeler continues

Wheeler Real Estate Investment Trust is a company that acts a general partner of Wheeler REIT. It is a firm that merged with Ceder Realty Trust, a then-publicly traded company. It owns retail properties in secondary and tertiary markets, where it leases them to national and regional retailers.

Wheeler Real Estate is not doing well. The most recent results showed that the company’s total loss jumped to over $30 million in the third quarter. Its net loss per basic and diluted shares was $30.6 while its funds from operations was a loss of over $11 million.

A key challenge for Wheeler is that it has a huge mountain of debt. It has over $671 million in total assets and total debt of over $495 million. It increased its debt by $11 million in the last quarter by borrowing $11.6 million from Cornerstone Bank. 

The WHLR stock price continued its downtrend after the company decided to dilute its investors again. In a statement, the firm said that it would issue unregistered common stock to settle December redemption requests.

The company cited the recent deterioration of its stock price and its limited volume of shares of Series D preferred stock. Wheeler has over 980k outstanding shares, up from 850k in 2016. All these issues mean that the company is in a life support, as this analyst warned about a few months ago.

Wheeler REIT stock price analysisWHLR stock

The weekly chart shows that the WHLR REIT share price has been in a strong bearish trend in the past few months. Most recently, the stock has crashed below the key support level at $6.40, the lowest swing in March 2020.

The shares have formed a head and shoulders pattern, which is a bearish sign. It remains below the 50-week and 25-week moving averages. The Relative Strength Index (RSI) has dropped below the oversold level.

Therefore, the outlook for the stock is still bearish as demand dries up. If this trend continues, the stock will likely continue falling as sellers target the key support at $0.30. This means that buying the dip can be dangerous for now.

The post Wheeler REIT(WHLR) stock price just melted: Buy the dip? appeared first on Invezz

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.