Friday, June 29, 2007

RAIT Financial Trust

RAIT Financial Trust is a high-yielding company with a forward-looking price to earnings ratio of just 6.21 times next year’s projected earnings. With a recent ticker price of $26.37, RAIT Financial Trust is ready for significant appreciation. The company’s operating profit margin is an impressive 54.73%. This results in an annual operating cash flow of $109.6M.

RAIT Financial Trust is a cash cow that has a reasonably attractive valuation. With a beta of 1.08, the company is more risky than the stock market as a whole. This information is useful, but a more careful analysis of RAIT Financial Trust reveals that the company’s risk profile is not as volatile as many of its competitors. It’s important to invest in a sufficiently liquid stock that money can be taken out of the position on every trading day and RAIT Financial Trust’s total market capitalization of $1.679B is ample proof of such liquidity.

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