Rather opt for the big guns
I have been watching Delta, as it trades at a significant discount to its net asset value (NAV) and it has a great yield – but that yield dropped as Delta cut distribution by 15.1%. This is the risk of a stock that’s ‘too good to be true’. It may not be true. The company mostly owns buildings tenanted by government, with month-to-month leases. Now, government isn’t going anywhere soon, but Delta needs to get these leases to longer terms – something the company is working on. The bigger picture here is that in this current market, even great stocks with great results are being punished and, as such, we should not be focusing on the secondor third-tier stocks yet. Let the large, quality stocks run, then we can start looking at the rest.