+ Watch STWD
on My Watchlist
A bit speculative, as they haven't been profitable for long, but I felt it was worth the speculation risk, so bought it for my own portfolio in real life.The sales are growing at an annualized compound growth rate of 89% since 2010, and the earnings are growing at an annualized compound rate of 17% during that time. The pre-tax profit margin has increased incrementally during that time, as has the earned-on-equity. The debt-to-equity has been fluctuating around 63% during that time, so no clear direction on that front. The P/E has averaged around 14 during that time, and is now at 15, so the P/E is higher than average, which would mean that the stock is not historically cheap. However, the PEG ratio is around 0.9, so the stock is reasonably priced by that measure. Also, the stock pays an annual dividend yield of around 9% over the past three years, so that is a great dividend. This is a REIT, so a high dividend is to be expected. However, with a payout ratio of above 100%, the dividend may not be sustainable at this rate indefinitely, but should still remain pretty high. The dividend is what initially attracted me to this stock, but the other valuation metrics are what made me buy this stock. I think this stock could more than double over the next 5 years. Add in the 9% dividend and I think this stock could return me 24% per year on a compounding basis for those 5 years. That means I could double my money in 3 years, if all goes as hoped. I'll have to wait and see if my prognosis plays out.
at least 8% growth and 3% yield.
LONG TERM HOTEL/LODGING COMAPANY - RECENT NEW STOCK ISSUE REDUCED DEBT WITH CONTINUING EXPANSION
I gave this one the green thumb on Investor Beat today. Largest commercial mortgage REIT in the US and solid track record.
After a pullback of nearly 8% from its highs for the year, shares of STWD have rebounded over the last few days bringing the stock back above its 50-day moving average, which should provide short-term support. What’s notable about the recent rebound is that it has occurred on significantly stronger than average volume. This contrasts to the month long pullback where the majority of the daily volume was below average.
I would opt for Starwood Property Trust (NYSE: STWD), which is a commercial mortgage REIT. Banks are pulling away from their commercial lending and that leaves a giant void for financing to commercial property owners. This is where Starwood Property Trust steps in and they can do it on favorable terms with limited competition. The stock yield 9.45%, it is run by one of the greatest business minds- Berry Sternlicht, and trades at book value.
buying up property, has high p/b, low p/e, decent eps, and fantastic dividend. considering this one for real portfolio.
Starwood is a high quality company with a exceptional satisfaction level from its customer base.It's also rated an 8 out of 10 on MSN's Stock Scouter.
Great CEO. Freshly started company in to a beaten down sector. It would be scooping up distressed properties at steep discounts. It can afford to wait out the storm because its cash reserves. I expect this to be a multi bagger in a few years.
shrewd real estate investorspatient, smart money
Seasoned management, well capitalized buying assets for 25 cents on the dollar. Expect them to eventually pay nice dividends--REIT dividends.
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