## Summary
- In Aug. 2019, TheStreet.com downgraded Jernigan Capital but its stock price has remained steady, though in cold storage.
- The self-storage industry is booming, and JCAP is on an acquisition spree and is also transitioning from specialty finance to an owner-operator model.
- The stock (at $19.55) has zoomed above its 20- and 50-Day EMA and is looking good on.
- Looking for a helping hand in the market? Members of The Lead-Lag Report get exclusive ideas and guidance to navigate any climate. Get started today »

The more storage you have, the more stuff you accumulate. ~ Alexis Stewart

Despite reporting a solid earnings per share of $0.26 and adjusted earnings per share of $0.46 in Q3 2019 and outperforming its quarterly guidance, Jernigan Capital's (JCAP) stock price remained in cold storage until recently.

https://static.seekingalpha.com/uploads/2019/12/22/39580-15770484418115537.jpg

The stock started rising on 17 Dec. 2019 from $17.49 and hit a high of $20.08 in just four days before profit booking emerged, forming a bearish engulfing candle on the Day-period charts. It closed at $19.55 on 20 Dec. 2019.

https://static.seekingalpha.com/uploads/2019/12/22/39580-1577048442233069.jpg

The company has issued two million common shares at a price of $20.68 in an ATM (At-The-Market) offering in Q3 2019. Its net debt to gross assets leverage is at a healthy 20%. Plus, 54 out of the 76 storage facilities financed by the company have started functioning and 85% of these have enjoyed a full rental season. The company entered the busy NY market with established partners. It acquired developers' interests in 7 projects it had financed, and 2020 will see more such acquisitions, and the company hopes to end up owning most of the self-storage facilities it financed in the next 18 months.

Everything looks just too good and bullish on paper for the stock.

Here's my analysis of the self-storage business and prospects for Jernigan Capital in 2020-21.

THE SELF-STORAGE BUSINESS 2020-21

https://static.seekingalpha.com/uploads/2019/12/22/39580-1577048442619939.jpg

Renting small-space storage is common among millennials, whose population is substantial. According to a study conducted by Le Claire Storage Group, an advisory services company, investment in creating self-storage facilities crossed $6 billion in Oct. 2018, and despite there being a perception of overcapacity, average asking rents are actually rising. This directly implies that the demand for renting self-storage units is on the rise.

##### [...Read the Full Article On Michael A. Gayed's Blog on Seeking Alpha](https://seekingalpha.com/article/4313845-jernigan-capital-stock-in-cold-storage)

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## Author Bio:

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This article was written by Michael A. Gayed. An author on Seeking Alpha and founder of the Lead Lag Report. 

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[Learn more about Michael A. Gayed on Seeking Alpha](https://seekingalpha.com/author/michael-a-gayed-cfa#regular_articles)

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