Summary
After selling 50 percent of my OHI position in November, I have now closed my entire long position in the healthcare REIT. I sold the remaning 50 percent last week.
I think this is a good time to take profits and wait for a new entry opportunity in the low $30s.
OHI is overbought over the short haul, exposing investors to downside risks.
OHI's stock price exceeds my best fair value estimate as well as consensus price target.
Taking profits is the smart thing to do.
I have sold my remaining shares in healthcare REIT Omega Healthcare Investors, Inc. (OHI) last week. While the healthcare REIT is a promising bet on an aging U.S. population and an associated increase in healthcare expenditures going forward, I felt that the recent surge in Omega Healthcare Investors' share price is exaggerated and that investors have become too bullish on the healthcare REIT. Though Omega Healthcare Investors covers its dividend payout with AFFO and is resolving its operator problems, the change in investor sentiment is a good opportunity to take profits, in my opinion.
