Real estate in China has taken a hit over the past several years. This stock has also seen the same kind of damage selling off over the past several years. Now, however, the company’s stock has stabilized along with the earnings and the real estate market in China.
But, this company primarily focuses its ventures in Hong Kong and has largely been immune to the epic building that has happened in mainland China. Instead, Hong Kong’s real estate market, which has come off of its highs prior to the financial collapse, the market has stabilized and economic activity has been expanding again.
Our economy is expanding and I am bullish on America. Some sectors in our economy will see larger growth prospects over others. One sector is the financial sector. I have been spending a lot of time looking through banks and insurance companies because I believe the growth potential is greatest for those companies.
American Equity Investment Life Holding Company is an insurance company that specializes in fixed index and fixed rate annuities. A fixed index and fixed rate annuity guarantees purchaser of those products increases in the index but shields the purchaser from any downside moves. This allows for an interesting investment.
I have been very bullish on the economy of the United States. Earlier this morning, the Bureau of Economic Analysis released numbers for both personal income and personal consumption expenditures. Personal incomes have an annual growth rate of 3.7% and expenditures by consumers has a 4.5% annual growth rate. Consumers are earning more and they are spending more. So, a company like Insignia Systems - ISIG - is positioned well to see an increase in revenue and earnings. Over the years the company has increased its asset quite modestly. But, given its assets, it has increased its gross income considerable and from that its earnings per share.
British Land Company is a real estate company that either owns, develops or manages commercial properties in the United Kingdom and, more specifically, around London. Generally, it is a REIT, Real Estate Investment Trust. The current price of the stock is $7.52 per share and the market capitalization is $7.5 billion. Please note, despite this being a primarily British company, all numbers are stated in dollars.
I have been extremely bullish on two separate sectors over the past six months, that being financial (specifically banks) and real estate. Both of these two industries are well positioned to move upward quickly with the coming economic moves. But, the later will take a bit more time. Real estate will see increases more and more from price increases via inflation.
I am very bullish on the U.S. economy. It has been expanding over the past several quarters. Employment is up. The Federal Reserve Chairwoman, Janet Yellen, has even declared that the economy has gone beyond full employment; the Fed has been pushing up interest rates. Incomes are increasing. Prices are moving upward nearing target levels.
Financial stocks will do well in an environment like such as that. Banks have more room to work with from a wider interest rate differential. That is what gets me excited about the financial sector. But, what about brokerages and wealth-management? How would they fare in an economic landscape as this? Quite well, as it turns out.
Boyd Gaming has had its fair share of volatility with its stock price. Unfortunately, over the past couple of years, the earnings were in negative territory. The stock had been trading as high as $50.00 per share. But, when the negative earnings started to come in steadily, the stock was beaten down as traders headed for the exits; BYD was trading at a price under $4.00 per share.
View fundamental data based on most recent published financial statements
|All Next||Launch Fundamental Analysis|