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PRDL comes to us hot with momentum and frankly, there’s very little we don’t like about this very pleasing stock.
You name it, this stock has it. Momentum is very strong and Wall Street has ensured consistently good volumes over the last few weeks (and days). The 23 MM share performance last week was just one small taste of the interest level in PRDL. To say that traders have the ‘hots’ for this stock would be grossly understating things.
We believe the strong interest is strongly tied to the strong upside potential presented in recent trading. Big rallies last week combined for a total of 100% and we wouldn’t be surprised if something big happens again soon.
The trading margins on PRDL are very wide and 40% swings northward are not uncommon for a stock of this calibre. And did we mention that the stock is dirt cheap at the moment?
We are talking about a triple zero sub penny play that has breakout written all over it.
Grab your trading gear and prepare to grab some profits; PRDL is getting ready to unleash the goodies.
Investor Highlights
PRDL is exhibiting strong high-side momentum with volume levels posting consistently good numbers.
Interest in PRDL is about to reach a crescendo as recent trading has shown the strong upside potential buried deep inside the stock.
PRDL is moving aggressively with its land bank strategy. The company recently signed a LOI to acquire prime land in Atlanta, Georgia.
PRDL is deep inside penny stock territory (currently a triple zero pure-play). This presents solid upside potential with trading margins for the stock breaching 40% in recent days.
PRDL’s growth potential has been getting consistent upgrades with its release of news, the latest being the signed LOI to acquire a 5-star resort in Cape Verde.
PRDL Positive outlooks for key property markets has given PRDL a huge lift and the stock is now ready to break into new trading territory consistent with its potential.
About PRDL
PRDL Profitable Developments, Inc. engages in the property development business in the United States.
PRDL is involved in the acquisition of financially distressed properties; the short and long term rental of properties; and the development of commercial property upon land which was sold due to financial distress.
PRDL was founded in 1998 and is based in Hinckley, United Kingdom.
Housing Recovery Big News for Real Estate Companies
The housing recovery has pushed up home prices nearly everywhere. Over the past year, home prices rose in 225 of the 276 cities tracked by Clear Capital, a provider of real estate data and analysis. (See how home prices are shifting in 276 metro areas.) Prices nationwide rose by 10.9%, pushing the median price for existing homes up by $30,000, to $215,000. For people who have waited to sell their home or refinance their mortgage, that's good news.
Rising home prices in Seattle enabled Mike and Kristin Litke to refinance their first mortgage last summer and pay off a second mortgage that had an 8.2% interest rate. The Litkes, who bought their three-bedroom, 1.5-bath home for $512,500 in 2007 at the peak of Seattle's housing market, had used the second mortgage to avoid paying private mortgage insurance.
In 2010, just as home prices in the area hit a trough, they refinanced their first mortgage to a 30-year fixed rate of 4.375% but were stuck with the second mortgage because they didn't have enough equity to do a "cash-out" refi.
This time, however, their home appraised for $521,000, allowing them to refinance into one 30-year, fixed-rate mortgage of $416,800 at 4.25%. They have reduced their monthly payment by $360, giving them some wiggle room in their budget and providing an infusion of college-savings funds for their kids: Stephen, 3½, and Stella, 10 months.
What's Ahead…
In 2013, a sense of urgency drove traditional buyers hoping to take advantage of still-affordable home prices and historically low mortgage rates. Buyers found selection limited, and were often forced into bidding wars with investors and other buyers who paid cash. Sellers reaped the rewards in terms of quick sales, often above the asking price.
Almost half of the cities tracked by Clear Capital experienced double-digit increases in home prices, led by Las Vegas, with a gain of 32%. Such spikes reflected a continuing "correction to the overcorrection," says Alex Villacorta, vice-president of research and analytics for Clear Capital. Buyers and investors rushed in to snap up homes with prices that had fallen too far. Homes continue to be affordable, despite recent run-ups--on average, prices are still 31.5% below their 2006 peak.
The percentage of monthly family income consumed by a mortgage payment (assuming a mortgage rate of 4.1%) is just 15.6%, on average, compared with 23.5% in mid 2006. "Houses are very cheap," says David Stiff, principal economist at CoreLogic, a property and mortgage data analytics company.
Market observers agree that home prices will rise in 2014, but at a slower, more steady pace compared with historical trends. Clear Capital forecasts that home prices nationally will rise by 3% to 5% in 2014, about the historical average. Kiplinger expects an increase of 4%. "The most notable thing about 2014 will be how un-notable 2014 is," says Villacorta.
Meanwhile, the Conference Board, a nonprofit association of businesses, found that the percentage of consumers who intend to buy a home in the next six months was the highest since 2000. Adding to the push: Pent-up demand among young people who, hampered by lack of jobs or insufficient income, have been living in their parents' basements or sharing apartments with roommates.
Celia Chen, a housing analyst with Moody's Analytics, says Moody's expects the economy to expand enough in the coming year to enable young people to begin moving out. They'll probably rent first, but low vacancy rates and higher rents will prompt some renters to move on to homeownership.
As home prices continue to rise, more owners who had been underwater--meaning that they owed more on their mortgage than their home was worth--will emerge from the sidelines and start selling and buying homes. CoreLogic reports that almost 3.5 MM homeowners were lifted out of negative equity between the end of 2012 and mid 2013. Nevada, Florida, Arizona, Michigan and Georgia have the highest shares of underwater homeowners.
"We're in the homestretch of getting through the foreclosure crisis," says Daren Blomquist, vice-president at RealtyTrac, which monitors the foreclosure market. "But we won't cross the finish line, with filings back to pre-crisis level, until early 2015."
Recent Developments
Profitable Developments, Inc. Signs LOI for Multi-MM Dollar Five Star Resort
NEW YORK, NY--(Marketwired - Dec 3, 2013) - Profitable Developments, Inc. (OTC Pink: PRDL) ("Profitable Developments" or the "Company"), an international property development company, today announced that it has signed a Letter of Intent for a resort property on the exclusive Sal Island in Cape Verde.
The 5 Star Award Winning resort is a high quality property boasting modern facilities and luxury amenities. Unlike most properties currently under development in this area, Profitable Developments has aligned itself with a property that is 'rent-ready'; where all of the units are completely finished and ready for occupancy and revenue generation.
"We have been working very closely with our global real estate partner to find high value opportunities, in stable but emerging regions of the world, where infrastructure is intact," stated Carl Grant, President of Profitable Developments. "Sal Island in Cape Verde is one of those opportunities. PRDL's potential for growth here is significant."
Early stage development within the Cape Verde region means significant growth potential for 'First-Movers' in the area. Having recently been upgraded to a 'middle-income' economy, this area demonstrates a good deal of growing stability as Cape Verde ultimately seeks entry into the European Union. Add an increase of tourists due to regular flights into Cape Verde from most European cities, and it becomes apparent why this emerging market was ranked number three on Lonely Planet's 2011 list of 'Top 10 Countries to Visit.'
Mr. Grant concluded, "Opportunities such as the resort property in Sal Island affords us greater flexibility as a property development company; leaving our land and property options open to real and sustainable growth. We are extremely excited to continue forward to the next stage of this project."
PRDL is extremely ripe for the picking and we believe these 3 catalysts are worth paying attention to:
- Property prices are once again inching northward. Companies in the space will pick up natural traction from the wider bullishness in the industry.
- Consistently rising volume in PRDL will attract more and more market interest. Expect price to dovetail with volume momentum.
- PRDL has very strong underlying technical, including a very well presented RSI 42.
Start your research now so that a potential upswing doesn’t catch you off guard.
To learn more about PRDL please visit their website: http://www.profitabledevelopments.com/
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