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IBDvalueinvestin (99.68)

NCT a stock on the verge of another Monster QTR

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December 27, 2010 – Comments (4) | RELATED TICKERS: NCT , QQQ , SPY

Describing NCT coming qtr as a Monster qtr is actually an understatement because the stock has reported some mind boggling numbers over the last 4 straight qtrs.

 

Beat by Surprise % of:
181.80% ,
6,620.00% ,
955.60% ,
and 690.90%

 

4 Comments – Post Your Own

#1) On December 27, 2010 at 12:17 PM, Mary953 (77.81) wrote:

I am curious about something.  This is a real estate and investment company.  I have had very little luck with stocks of this type, even if this one is trading at just below $7.  Can you tell me what is different about this one? I will put it on my watchlist, but would hate to have missed the opportunity (or lost the investment) because I didn't know enough to analyse it properly.

I really do have to learn how to read a balance sheet!

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#2) On December 27, 2010 at 1:41 PM, IBDvalueinvestin (99.68) wrote:

Ask dragonLZ (99.59) he is the expert on NCT

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#3) On December 27, 2010 at 4:28 PM, EnigmaDude (93.40) wrote:

Mary,

I am curious to see whether dragonLZ will reply, but here is my take.  (Info reported here is from Yahoo Finance):

Earnings per share ttm (trailing 12 months) = $8.27

That makes for a current P/E = 0.83

Price/Sales = 0.5  (so the share price has not yet caught up with future implied revenues)

PEG (price to earnings growth ratio) = 0.35 implies continued growth expected over next 5 years.

Share price has soared from a low of $1.75 in January, 2010 to as high as $7.10 last week.  So some of the growth is already priced in, but if they continue to exceed analyst estimates the stock could easily double from here.

Also, they suspended dividend payments, which is often why investors like REITs.  I would imagine that they will have to resume paying dividends at some point soon to retain their REIT status.

The risk is that they are holding a lot of debt, which is not unusual for an REIT.  This is a risky, speculative bet with the potential for substantial capital growth.  Not for the faint of heart, especially if real estate declines again (or further, depending on where you are). 

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#4) On December 27, 2010 at 11:45 PM, dragonLZ (99.59) wrote:

Thank you IBDvalueinvestin, but I'm really no expert on NCT.

All I know is that NCT is ranked #1 based on my 11-21 criteria (which has nothing to do with fundamental analysis), and that's why I picked it as "The best stock in the World" on bluebare's blog (here is the post about it).

NCT is up 153% since then.

p.s.

I also know NCT is swimming in debt, but it's also making tons of money last three quarters. Which one of the two is more important, I have no idea.

Good Luck All.

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