It’s Too Late For Simon Property

Simon is a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Their properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales.

Which is why it seems odd that real estate investment trust (REIT) Simon Property would even consider dipping a toe into the online retail space. Not only is running a retail operation a little outside its normal scope of business, but the mall operator is so far behind the internet leaders that it can’t possibly hope to catch up.

First and foremost, Simon isn’t exactly opening up a web store of its own. Instead, it’s partnering with other companies, essentially its tenants, and will take a cut of sales. Retailers will, effectively, take care of the hard stuff, like curating products and fulfilling orders.


Simon isn’t likely to turn Shop Premium Outlets into a huge moneymaker for anyone, given that it’s decades behind the times with this effort. But the more powerful goal may be the connection it fosters with consumers. Even a break-even business that helps drive brand awareness (for Simon and its tenants) would be a net win.

I’m not convinced Simon’s new initiative will be significant to the bottom…so convinced that five months ago the charts were suggesting to short the stock on the month chart.

On the monthly chart, price was showing negative divergence and broke the monthly up trendline. The chart was suggesting price was in the process of leaving the monthly supply zone at $185 and price could fall all to the monthly demand zone at $115.

Simon Property Group, A Barometer For Retail

It took a while, but price appears to be breaking down, if price closes below $160 on the monthly chart….look out below.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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