Wikipedia defines a dark horse as "a little-known person or thing that emerges to prominence, especially in a competition of some sort or a contestant that seems unlikely to succeed".
When selecting a "dark horse" REIT it's important to put on your value investor hat and examine all of the possible catalysts that could turn a really cheap stock into a top performer. Remember, the game of value investing is all about price and value and as the legendary investor Ben Graham called "a favorable difference between price on the one hand and indicated or appraised value on the other".
That is why stocks of good companies on sale reap the highest returns.
As Christopher Browne wrote in The Little Book of Value Investing "value investing, buying earnings cheaply is the most reliable way I know to grow your nest egg, not because I say so, but because it's also been shown to be so - time and again, throughout the decades in numerous academic studies."
This Looks Like an MLP and a BDC in a REIT Wrapper (And I Like It)
Recently I included CorEnergy (NYSE:CORR) as a candidate for my REITs Around $10 Portfolio (also known as the Charlie Brown portfolio) and while I was intrigued by the prospects of this selection, I needed to drill down to the details before making a decision. Here's a snapshot of the nominees for REITs that are trading close to a $10 price tag:
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What initially attracted me to CorEnergy was the high dividend yield of 8.1%.
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