My pick is AIMCO - (NYSE-AIV)
AIMCO stands for Apartment Investment and Management Co. The company is involved primarily in the ownership and management of rental properties nationwide. The US rental market is red hot, and I anticipate it staying red hot for another couple years through 2014 at least. I believe an investment in AIMCO will allow us an opportunity to capitalize.
This is an extremely competitive space.. so why choose AIMCO? My choice is based on valuation. I believe that AIMCO is undervalued with respect to its peers. This year saw one of the largest apartment REIT buyouts in history, with Equity Residential and AvalonBay buying Archstone from Lehman Brothers. I believe that that opens the door to more potential buyouts as other sharks look for undervalued assets. A company looking to expand it's portfolio could make a bid on a company like AIMCO and add 100,000 units to its holdings while it's share price is low.
Currently AIMCO trades at $29.16.
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