Property Stocks (MEG,FLI,VLL) and Australia 1-26-2012

All property sectors are still Medium term downtrend, and if the earnings kicks in larger than expected, we expect these 2^nd liners to break out of its downtrend channels.

Let us start with the most linient and cheapest among the three. MEG. MEG for 2011F earnings is at 8 P/E Ratio. Below from the properties average of 12X Ratio. This was the most active of the three for 2012 and Q4 2011. MEG has a good tradable range and expect it to rise soon if Rent and Property Sales start to increase. Accumulate near 1.72 short term support, and accumulate more if it falls near 1.62, then 1.50it’s 52-week low.

Long Term: Possible Uptrend

Medium Term: Downtrend and will resume to uptrend once it breaks out of 2.0 Resistance.

FLI became a laggard when almost no volume for 2012. It was the most traded 2^nd liner then, but became soft when it hit 1.50 last year. The 1.0 seems to be a strong support and now forming a descending triangle, A very strong support is at 1.0, followed by .85-.90 support. FLI is now at 9x 2011F. And is expected to be weak due to flat sales.

Long Term : Sideways

Medium Term: Downtrend and will resume to uptrend once it breaks out of 1.20 Resistance.

VLL also became silent after became a very tradable Property stock last 2011. In terms of 2011F earnings, it is at 9.0X. Fairly below average. All these properties seems to be below 12X Average and cannot cope up with the OverPriced ALI at 30X P/E 2011F.

A Good 2.80 to 3.20 Tradable Range is intact. Trade the Range.

Long Term : Possible Uptrend

Medium Term: Downtrend and will resume to uptrend once it breaks out of 3.20 Resistance.

Australia (+50pts when looking into Yahoo/Bloomberg) is now in a Trade the range from 4050-4400. It is now slowly getting out of the heavy downtrend channel, we don’t have a clear confirmation yet if this Index is now on a medium term uptrend phase. The 10% Range seems very entertaining to be traded with for a 13X 2011F Index. We expect AU’s GDP to be flat or more than estimated, and must see AU has already recovered from 2011’s flood.

Long Term: Sideways

Medium Term: Downtrend and slowly shifts to being Uptrend once confirmed. Next support is at 3900 if 4050 do not hold.