TSX:REI.UN - Post by User
Post by
Stockguru2017on Aug 23, 2020 11:15am
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Post# 31443180
Risk/reward ratio for REI is heavily skewed towards reward
Risk/reward ratio for REI is heavily skewed towards reward It's much safer and will be more rewarding to buy REI now than it was 6 months ago when it was trading above $27. The worst case scenario going forward is mostly baked into the price i.e. a huge second wave with further lockdowns.
It's possible it can fall below the 11 year low of $12.41 reached on March 23rd if the market crashes again, but even if it does, it gives you an opportunity to put that 9.4% distribution yield to good use and buy more shares at an incredible discount.
REI is currently my favourite value play on the TSX, and I'll continue adding as long as it stays below $16.