iStar Financial Inc. operates as a finance and investment company focusing on the commercial real estate industry in the United States. The company provides custom-tailored investment capital to high-end private and corporate owners of real estate; and invests in a range of real estate sectors. The Real Estate Finance segment offers senior and mezzanine real estate loans; preferred equity investments, as well as senior and subordinated loans to corporations; and whole loans and loan participations. The Net Lease segment owns and leases corporate facilities to single creditworthy tenants. As of December 31, 2013, this segment owned 263 facilities comprising 20.4 million square feet in 33 states. The Operating Properties segment operates commercial properties consisting of office, retail, hotel, and other properties; and residential properties, including luxury condominium projects. This segment operated 28 commercial properties comprising 5.5 million square feet in 10 states; and 12 residential projects representing approximately 616 units located in principal cities in the United States. The land segment owns 27 properties, including 11 master planned community projects, 10 infill land parcels, and 6 waterfront land parcels.
To review iStar’s stock, please take a look at the 1-year chart of STAR (iStar Financial, Inc.) below with my added notations:
STAR has been trading sideways for the last 3 months. Over that period of time the stock has formed a clear resistance level at $15 (blue). In addition, the stock has also created a strong level of support at $14 (black). At some point the stock will have to break one of the two levels that the sideways consolidation has created.
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The Tale of the Tape: STAR has clear levels of support ($14) and resistance ($15). The possible long positions on the stock would be either on a pullback to $14, or on a breakout above $15. The ideal short opportunity would be on a break below $14.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
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