Ticker: CHCT, Buy below $50.

Community Healthcare Trust is a REIT that focuses on real-estate properties relating to health care.

Why I Would Buy

1. Insider – Strong insider holding and buying.   
2. Strong Alignment of Management Interests – Bulk of management and Directors compensation is in restricted stock.
3. Uncorrelated Businesses: Healthcare REIT — benefits from a recession resistant, long term trend.
4. Dividend – generous 3.5%+ yield

What Could Go Wrong

1. Coronavirus related Damage – Pandemic has hit healthcare industry disproportionately, as all non-essential procedures are being deferred.
2. Dilution – Aggressive issuance of equity to fund expansion.

Disclosure: I am long CHCT, please read additional disclosures here before taking any action based on this post.

Ticker: RTX, Buy below $65.

Raytheon Technologies Corporation is a major aerospace and defense company.

Why I Would Buy

1. Moat – Part of an oligopoly of Aerospace players, especially engines.   
2. Credit Rating – Investment grade credit rating.
3. Uncorrelated Businesses: Aerospace is a high beta industry, but the defense industry moves to an uncorrelated cycle – potentially smoothing out earnings
4. Dividend – generous 3%+ yield

What Could Go Wrong

1. Synergy May Not Materialize – Recently created from merger of Raytheon and United Technologies.  Not enough operating history available to analyze the combined entity
2. Coronavirus Impact – The extent of damage to aerospace industry is unkown.

Disclosure: I am long RTX, please read additional disclosures here before taking any action based on this post.

Ticker: EBTC, Buy below $25.

Enterprise Bank offers commercial and consumer loan and deposit products, investment management, trust, and insurance services.

Why I Would Buy

1. Insider Holding – 18%+ of the shares are held by insiders.   
2. Dividend – 3%+ dividend, with a payout ratio < 30%.
3. Cheap – Trailing P/E of 9, P/B of 0.9.
4. Return on Equity: between 9 and 12+% returns on equity annually for most of last decade.

What Could Go Wrong

1. Tiny Bank – Microcap, large exposure to commercial loans in a limited geographic area in Massachusetts.
2. Coronavirus Impact – The extent of loan book that could become non-performing is unknown.

Disclosure: I am long EBTC, please read additional disclosures here before taking any action based on this post.

Ticker: PPL, Buy below $28.

PPL Corporation is an utility serving electricity to customers in US and Great Britain.

Why I Would Buy

1. Defensive Buy – Diversified, good quality utility, a defensive play during a coronavirus meltdown.   
2. Dividend – 5%+ dividend.
3. Investment Grade Ratings – PPL long term debt is rated BBB/A- by leading rating agencies.
4. Return on Equity: 10+% returns on equity annually for most of last decade.

What Could Go Wrong

1. Not A Screaming Bargain – Even with the crash, PPL is trading at 14 times earnings.
2. Expanding Sharecount – Float has doubled in the past decade.

Disclosure: I am long PPL, please read additional disclosures here before taking any action based on this post.

Ticker: NMFC, Buy below $15.

New Mountain Finance is a Business Development Company that lends to middle market companies.

Why I Would Buy

1. Insider Holdings – Officers and employees holds 12%+ of all outstanding shares.   
2. Insider Buying – Strong insider buying during last 3 and 12 months. No insiders have sold last 12 months.
3. Dividend – 10%+ yield.

What Could Go Wrong

1. Dilution – NMFC has been indulging in massive stock issuances.
2. Beta – Tied to the health of the US economy, could get hurt disproportionately in a recession.

Disclosure: I am long NMFC, please read additional disclosures here before taking any action based on this post.

Ticker: HT, Buy below $20.

Hersha Trust is a REIT that owns and operates upscale hotesl in United States .

Why I Would Buy

1. Cheap – Hersha Trustcurrently sells at 8x trailing and forward AFFO (Adjusted Free Flow from Operations).   
2. Insider Buying – Strong insider buying during last last 12 months. No insiders have sold last 3 months.
3. Dividend – 7%+ yield.
4. Insider Holding – More than 10% of the outstanding units are held by insiders
5. Low Dividend Payout – Less than 70% of AFFO paid out as dividends.

What Could Go Wrong

1. High Debt – Debt-to-Equity at 1.39, several high yield preferred securities are outstanding.
2. Risky Market Segment – Luxury hotel occupancies are highly sensitive to the health of economy.
3. Interest Rates – Interest rates moving up will likely hurt all leveraged REITs including HT.

Disclosure: I am long HT, please read additional disclosures here before taking any action based on this post.