Segro PLC is a real estate company that develops and manages warehouse and industrial properties in the UK and continental Europe (Spain, France, Italy, Germany, The Netherlands, Czech Republic, and Austria).
About 39 percent of the value of Segro PLC is located in Greater London, and last week they announced that construction work is beginning at Segro PLC Logistics Park Northampton Gateway, where they will offer five million square feet of warehousing and logistics facilities.
It seems like a nice way to invest in real estate as an alternative to housing at a moment in which housing prices may suffer from the results of the COVID-19 pandemic.
The stock
When we wrote these lines, its shares in the stock market were at GBP 963.2, very close to its maximum at 989.4. We are interested in what will happen this week; because if we have a bullish movement, at the same time it can surpass that resistance, and, the MACD can also give us a buy signal.
If that happens, we think there is a good chance for it to reach the range of GBP 1245 to 1400 that has not been seen in this stock’s price since 2007. From about 990 to 1245, we have an interesting potential profit of more than 25 percent. We could set the stop-loss at 880 (12.5 percent of potential loss) or at 862 to be safer (potential loss 14.8 percent).
If we look at the news in the newspapers, it is hard to understand how the stock market can rise with all the damage that the pandemic is doing not only in the economy, but also in the society. However, to win in the stock market we need to listen to the price and not to our logic. As we have our losses limited by the stop loss, we will do so and keep our reasonable thoughts for other aspects in life.
As usual, we are looking at the market with weekly charts, meaning that we will need patience to see how the movements will develop.
Keep in mind that we do not give financial advice, and this blog post is only for entertainment purposes. If you need help with your investments, please do your own due diligence and ask your financial advisor.