American Capital, as of Sep 16, was trading at a pretty low trailing P/E ratio of 4.6, and a forward P/E ratio of 5.6. American Capital, is a real estate investment trust (REIT). Similar to other REITs, the company is utilizing the difference between long-term and short-term interest rates to maximize its profits. It pays a gorgeous dividend of 18.76%, while the profit margin (92.8%) crushes the industry average of 12.9%.Latest dividend declaration date was Sep. 14, where the stock will go ex-dividend on Sep. 21st.
American Capital has an O-Metrix score of 19.96, and it is trading only 2.04% lower than its 52-week high. Target price is $31.16, which implies a 4.8% upside potential. The stock returned 1.8% in a year. Insider transactions have increased by 38.02% in the last six months, while sales rose by 423.29% this quarter. ROE and ROI are 18.30% and 17.90%, respectively. While SMA200 is 7.47%, SMA50 is 2.98%. P/E ratio, P/B (1.1), P/S (4.2), profit margin, ROE, are strong green flags. 11 out of 16 analysts recommend buying, and I agree with them.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
This article is tagged with: Long & Short Ideas, Quick Picks & Lists More articles by Dr. Osman Gulseven »
I bought in at 29.90 back in July thinking it would go to at least 30.50 and I could make a quick gain. Wow,was I wrong. I guess I'll just have to hold for the div unless it goes to 31 before ex-date,which I doubt. I was watching ARR to see what it would do after ex and it still seems to be holding up pretty well even considering the cut in div.