Big cities won’t die – JLL

I’m working on how to best express a contrarian investment view within the ‘out of favour’ office building market amongst the world’s great cities.

I think the ‘great’ cities of the world won’t die, let alone become ghost towns.

As I trawl through a host of businesses and assets exposed to this theme…I started re-looking at the leading companies in property management and leasing industry.

Jones Lang LaSalle’s (JLL) stock price chart is an example of knowing when to buy and sell and perhaps when to trim, scalp or add to your position.

For 10 years, the stock price has spent most of its time trading within 30% of either side (about $40) of today’s $139 price.

When I marry the metrics in the study below along with a few others (not shown), the circles denotes moments to sell and the rectangles are moments to buy and accumulate.

There is a time to buy and a there is a time to sell…….

after all, JLL’s stock price is still trading at the same price as marked by “X” along the horizontal red line in the chart below.

For the “buy and hold” crowd, depending when they bought, many are still ‘underwater’ and for some, it may date back to 2015.

October 12, 2023

by Rob Zdravevski

rob@karriasset.com.au