Showing posts with label Newcastle Investment Corp.. Show all posts
Showing posts with label Newcastle Investment Corp.. Show all posts

Friday, June 29, 2007

Newcastle Investment Corp.

Newcastle Investment Corp. is a high-yielding company with a forward-looking price to earnings ratio of just 8.03 times next year’s projected earnings. With a recent ticker price of $25.78, Newcastle Investment Corp. is ready for significant appreciation. The company’s operating profit margin is an impressive 82.39%. This results in an annual operating cash flow of $484.5M.

Newcastle Investment Corp. is a cash cow that has a reasonably attractive valuation. With a beta of 1.24, the company is more risky than the stock market as a whole. This information is useful, but a more careful analysis of Newcastle Investment Corp. 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 Newcastle Investment Corp.’s total market capitalization of $1.360B is ample proof of such liquidity.