http://www.pennystockdetectives.com/penny-stocks/new-home-construction-up-willripple-effect-send-this-penny-stock-to-new-highs New Home Construction Up; Will Ripple Effect Send This Penny Stock to New Highs?
On October 17, the U.S. Department of Housing said that new home construction across the nation increased 15% month-over-month to a seasonally adjusted annual rate of 872,000. New housing starts across the U.S. are 34.8% higher than in September 2011. (Source: U.S. Department of Housing and Urban Development and U.S. Department of Commerce, “New Residential Construction in September 2012,” U.S. Census Bureau News, October 17, 2012.) Based on the strong September numbers, some pundits think steady gains are likely to continue. While the Magic 8 ball can’t confirm that assertion, renewed optimism could help out a number of penny stocks whose businesses rely directly and indirectly on the real estate market. Cousins Properties Incorporated (NYSE/CUZ) is a real estate investment trust (REIT) penny stock that invests in, develops, and manages commercial properties, mainly in the Southeast. Its portfolio includes about 36 office properties and shopping centers. Other holdings include industrial properties, residential development projects, and more than 9,000 acres of undeveloped land. The penny stock also has a steady pipeline of projects in various stages of development. The company’s $100-million Emory Point property (apartment and retail) was recently given the best mixed-use development award in Atlanta. Its Mahan Village in Tallahassee, Florida, will be anchored by Publix Supermarket, and is expected to open in November. Earlier this year, Cousins announced a partnership with Watkins Retail Group to develop Publix-anchored neighborhood shopping centers in Florida and Tennessee. This will be the second project the two companies have partnered. On July 31, Cousins announced its second-quarter financial results for the period ended June 30. Funds From Operations Available to Common Stockholders (FFO) in the second quarter was up 21% year-overyear at $13.2 million, or $0.13 per share. Year-to-date FFO increased 40% year-over-year to $26.6 million, or $0.26 per share. Second-quarter net income was $6.4 million, or $0.06 per share, compared with net loss $4.7 million, or $0.05 per share, for the second quarter of 2011. Cousins reported a year-to-date net loss of $6.7 million, or $0.06 per share, compared with $12.6 million, or $0.12 per share, for the same period in 2011. During the quarter, Cousins streamlined operations, selling its Galleria 75 for $9.2 million; the Avenue Collierville for $55.0 million generating $54.6 million in net proceeds; and Ten Peachtree Place for $61.0 million, resulting in net proceeds of $5.0 million. The penny stock also provides an annual dividend of approximately 2.20%. On July 19, it declared a quarterly dividend of $0.045 per share, or $0.18 annualized.
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Chart courtesy of www.StockCharts.com Cousins has been in an uptrend since the beginning of the year, and remains bullish. While no one would declare an end to our economic woes, the unexpected surge in September’s new home builds could provide Cousins with a speculative boost. Recent acquisitions, new development projects, and the streamlining of non-core assets could also help strengthen the penny stock’s bottom line, and bolster shareholder value. Further, on Friday, October 19, the National Association of Realtors will be releasing sales numbers of existing U.S. home sales. The sales number is forecast to come in at 4.73 million; slightly below the 4.82 million recorded in September. While Cousins does not operate in the existing residential home sales market, solid numbers, coupled with strong new housing build numbers, would indicate an economic uptrend; causing a ripple effect that could positively impact REITs like Cousins.
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