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Ladder: The Right Steps in Real Estate Financing
10/22/2018 5:00 am EST
Our "long breakout ideas" are most suitable for aggressive investors seeking ideal entry points into leading stocks; our latest breakout buy is Ladder Capital Corp. (LADR), a commercial real estate finance company, explains Leo Fasciocco, editor of Ticker Tape Digest.
With annual revenues of $450 million, Ladder provides loans, securities, real estate and other services. The company invests in commercial mortgage-backed securities and United States Agency Securities.
The firm's real estate unit handles leased properties, office buildings, a warehouse and condominium units. LADR invests primarily in loans, securities and other interests in the U.S. commercial real estate market.
ADR's long-term chart shows the stock coming public in 2014 at $16.75. The stock trended sideways and then rolled over. It fell to an all-time low of $8.64 in early 2016.
That was the same time the stock market fell sharply. However, since then LADR has risen steadily and is now at a three-year high. The stock's momentum indicator is solidly bullish.
Five analysts follow the stock. Net for the upcoming third quarter should increase 17% to 41 cents a share from the 35 cents the year before.
However, net for the fourth quarter is expected to decline 11% to 42 cents a share from the 47 cents the year before. The company has topped the Street estimate the past three quarters by 5 cents a share, 18 cents and 4 cents.
This year, analysts are forecasting a 19% increase in net to $1.83 a share from the $1.54 the year before. The stock sells with a price-earnings ratio of 9. Going out to 2019, the Street predicts a 3% decline in profits to $1.77 a share from the anticipated $1.83 this year.
We are targeting LADR for a move to $21 off this breakout. We would consider a short-term trade with profits to be taken o the move.
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