Sell: Community Healthcare Trust Incorporated (CHCT)
From Cabot Dividend Investor
Updated from Wall Street’s Best Dividend Investor 309 June 12, 2018
Community Health Trust, fast-growing small healthcare REIT, is benefitting from the recent upward thrust in the market. It’s up over 13% just this month. While the underlying business is in defensive health care properties, the stock is a lot more cyclical because it is a small, lesser known REIT. This is a stock that in the near term will mimic, and indeed exaggerate, the whims of the market. Since I believe the market to be precarious at this point, I will sell the remaining one third position while the getting is good—with a 31% return in two years on the remaining position. Nice profits have already been realized on two thirds of the position during the boom times. But I see the remaining third as a prudent place to pull back right now. SELL.
Tom Hutchinson, Cabot Dividend Investor, cabotwealth.com, 978-745-5532, June 10, 2020