Insights

Crown Castle International (CCI, NYSE)

  • According to empirical evidence and numerous research papers*, buying strength and selling weakness has a statistical advantage with respect to expected future performance. This is called Relative Strength Investing.
  • Relative strength is a strategy helpful in identifying value stocks which are becoming Blue Chip Leaders. It focuses on investing in stocks or other investments that have performed well relative to the market as a whole, or to a relevant benchmark.
  • 5G refers to the fifth generation technology standard for broadband cellular networks.
  • Last week FIVG, the appropriately-named ETF focused on 5G stocks broke out to new highs.
  • Crown Castle Intl Corp. an $85 billion 5G Tower Company, broke out of its range on April 1 and has been leading the sector, and the broad market since.
  • CCI is in a strong uptrend and trading above all of our moving averages. It is due for a slowdown or even a corrective period but for now seems to want to go higher.

* e.g. Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency Narasimhan Jegadeesh; Sheridan Titman The Journal of Finance, Vol. 48, No. 1. (Mar., 1993), pp. 65-91.

 

 

 

 

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