Warehouse operator sees booming business, but stock chart signals caution.
The plan is simple: buy real estate and aim at warehouses that can store items crucial to consumers.
Hamid Moghadam, chairman and CEO of Prologis (PLD) – Get Prologis, Inc. Report, the warehouse real estate investment trust (REIT), told Jim Cramer on a recent episode of “Mad Money” that the plan is going great, even with supply chain issues.
Moghadam said market dynamics continue to be highly favorable for Prologis and demand has never been stronger. Not only is e-commerce continuing to accelerate, but companies are building up their inventories for resilience and disaster recovery. And on top of that, consumption is also growing, making for positive conditions for Prologis.
On Real Money, Bruce Kamich, who looks at technical indicators on stock charts, said caution is warranted with Prologis. The stock “is trading below the cresting 50-day moving average line. The slope of the 200-day line is still positive,” Kamich noted, adding that the point and figure chart for shares was showing a “bearish target.”
When asked about competition, Moghadam noted that the supply of suitable real estate remains tight in many markets. Prologis has been diligent in its land efforts, however, and has the land to add another 200 million square feet of capacity.
Moghadam also talked with Cramer about the labor market, saying that not only is the cost of labor increasing, but the availability of labor continues to shrink, forcing more customers to turn to technology and automation to get the job done.
