Technical Trade-of-the-Week: Ares Commercial Real Estate Corp. (ACRE)

By Tech_Spec
23-June-2018 5:21:14 PM

The REITs (real estate investment trusts) have been a particularly strong performing sector in the U.S. market.  And for good reason.  Real estate values in the U.S. have steadily appreciated.  Good quality real estate assets have steadily advanced in value as the U.S. economy continues to improve.  Couple this with a very reasonable P/E multiple and a high dividend payout and ACRE appears to be a winning combination.  Below is the key fundamentals and technicals regarding this trade.

Company Profile: Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate loans and related investments in the United States. It provides a range of financing solutions for the owners, operators, and sponsors of commercial real estate (CRE) properties. The company originates senior mortgage loans, subordinate debt products, mezzanine loans, real estate preferred equity investments, and other CRE investments.


Trailing P/E: 12.05, forward P/E: 11.35

EPS: 1.17, Beta: 0.68, PEG: 2.52

P/S: 8.16, P/B: 0.95

Profit Margin: 67.70%, operating margin: 69.65%

ROA: 2.10%, ROE: 7.94%

Qrtly Earnings Growth: 44.40%, Current Ratio: 2.56

Trailing Annual Dividend Yield: 7.76%

Addition Fundamental Data:


Recently broke out of a 16-month consolidation

New 52-week high, new all-time high

Buying momentum (RSI) is positive and rising, buying volume is slightly positive

The support level is $13.20, the safety stop is at $12.90

The target is $15.97

Suggested buying approach: Buy ACRE at the current price level. If the stock declines, as long as the price is above the safety stop, wait for confirmation of support and then add to the position if desired. Always use a 3% trailing stop.

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Author: Tech_Spec

Canada’s only Master of Financial Technical Analysis (MFTA). This 4 – 5 year program offered by the International Federation of Technical Analysts (IFTA) in England is regarded as the global standard. • Instructor of Technical Analysis for the Canadian Securities Institute (CSI). My role is teaching market analysis to industry professionals. • Financial Technical Analyst offering 25 years experience in the financial and investment service industry. • Editor and owner of the, an on-line independent financial market research and newsletter website. • Registered Securities Advisor

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