KIM - dilution effect does not allow BUY recommendation

Among peers (6 REITs with current marketcap >$2bln) KIM is hurted most at 4 out of four intermediate terms for the year passed: 1yr, half, qtr (only VNO performed worse at 1mth period).

All REITs showed increased volume last half year. KIM's volume spiked enormously on 3 April accompanied by price increase by around 30% from $7.49 to $9.4 when company announced 91mln shares issue @$7.1 (meaning selling equity at fire sale price) to reduce debt. Reduction of debt was perceieved as a good, still dilutive shares issuance was negative for old shareholders.

Company looks most undervalued also by basic multiples (P/E, P/S) though I did not find out if finviz uses old or new number of shares.

Company financials (profitability, balance sheet items turnover, debt leverage) look average compared to peers with no deviations.

KIM, VNO and O are reported a zero short interest as of beginning of April.

I would avoid recommending BUY based only on comparative valuation due to uncertainty with share issuance effect. Technical analysis could hardly be applied now untill full understanding of the effect of share issuance (scale of the dilution effect).

FCX $35-45 range within 1-2mths to seek longs

Timeframe: 3-15 days

LONGS - SPECULATIVE

SHORTS - TOO LATE

As we can see from the charts of copper and its biggest producer FCX - their rebound started before SP500 tested its low at the beginning of March. Possible acceleration of copper price can be triggered only by solid insustrial demand - which is a consequence of overall economic growth. Thus short term rallies of copper and FCX are of low probability. Still, I dont find opportunity for FCX to test new low within coming month or two as it showed strength compared to general stock market.

FCX is good at levels, so approaching of 50 can be used for intra-day momentum trades.

Possible range in 35-45 within coming several months will guide long entries.

RTH - use consolidation @80 to short

Logics: break or consolidation at 80 (no matter higher or below) for up to a week will open opportunity to short this retail index. RTH's rebound from MA200 is supported by even better down trend movement of DJI: its low on 9 March was lower than low of 21 November though it has a room to meet its MA200 @9000.

Timeframe of the deal: 3-15 days.

Entry signal: consolidation if no super-positive fundamental data arises.

Deal type: correction movement (rebound from MA200) which later can be used as a buying opportunity.

Target: 73 (~30% of last month movement of 19$)

Fundamental: March sales show further weakness. Probably laid off consumer will be weak at least for a quarter or two when we will see effect from government aid programs.