This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Alternative Income Cheapies

I really want exposure to commercial real estate so I am willing to buy Apollo Commercial Real Estate Finance (ARI) at 90% of net asset value. Commercial real estate has not recovered as quickly as the residential markets but there are signs of improvement. There is $1.6 trillion of CRE loans that will need to be refinanced over the next five years as we reach the outer limits of extend and pretend, and that is going to create significant opportunities for Apollo.

We have done very well with alternative-income vehicles associated with Apollo Global Management in the past, and I expect to do so with its CRE Finance offering. The hedge fund and asset manager has extensive real estate and finance assets under management, and its expertise should help the finance REIT turn in stellar long-term returns.

That wraps up my view on the world and what I think is cheap enough to buy right now. It is interesting that outside of small banks and long shots, which are separate businesses and portfolios in my mind, I can only find 25 stocks to buy now at current prices.

Even if I jumped into a full 2% starting position, new portfolios would only be 50% invested. Since I am a scale buyer, the vast majority of the time the actual percentage would be less than that initially. There is no excess of cheap stocks now. While that is not a market call, it does serve as something of a caution flag for me.

At the time of publication, Melvin was long NLY, ARR and ARI.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Real Money
Try it NOW

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs