AMB Property Corp (AMB)

The company reported a surprising increase in EPS today marked at 1.10/share. However, upon listening to the conference call, I can see that this increase in earnings, though somewhat a one-time major increase, is a hallmark of something great to come.

The company has expanded into 44 markets throughout the world looking to projects in Japan (a slowly strengthening currency/market?) and also looking forward to jumping on the Chinese thaw of government land control. The company also has strategic relationships with major European financial institutions, allowing them to increase their capacity for property growth.

A further inspiring entry into the list of positive indicators from the conference call is that of property improvement. Recognizing that some properties are aging, the company is well ahead of the aging process and is increasing these improvement projects that will, initially, cut into the company's bottom line, but will cause growth in the company's renting volume. This developmental change will allow for greater profitability. After all, it takes money to make money.

Enough with the conference call. One should now look into the fundamentals surrounding my outperform pick. Margins for the company allow for the stock to benefit from a greater promise of profitability. Operating and profit margins sit at 29.83 percent and 37.59 percent respectively.

The management is also excellent. The company gives complete and full disclosure and allows for the management to provide a 7 percent return on equity. Institutions also believe in the stock, owning nearly 88 percent of the outstanding common stock, while the management holds just over 1.5 percent. Translated to its effect, this infers that there is a large buy-in to the security and also helps to decrease the risk involved with such a pricey pick.

Analysts peg this stock at 66 dollars/share (high estimate), and I think that it will get there early next year.