David Taylor

Senior Member of Macroaxs Editorial Board - Sector Analysis

David is a professional writer who writes for multiple investment news outlets. His primary focus is dynamic movements in financial markets and effects of economic volatility on North American industries and sectors. David has many years of experience in financial service industry including working with major banks as a FX trader. In his free time, he does a lot of outdoors type activities including rock climbing, mountain biking, hiking, mountaineering and kayaking in the summer, and snowboarding in the winter.
ConcentrationEconomic Outlook and Perspectives
Web Sitehttps://www.macroaxis.com

David Taylor Latest Stories - Published

Terra Firma Capital Corp. (TFCCF) is a Canadian real estate finance company.  The company specializes in bridge loans for developers and home-owners doing construction.  The company’s market capitalization is $35 million and the stock is trading at $0.489 per share, making this effectively a penny stock.  

 

 product technology   terra firma

Real estate in China has taken a hit over the past several years.  This stock has also seen the same kind of damage selling off over the past several years.  Now, however, the company’s stock has stabilized along with the earnings and the real estate market in China.  

But, this company primarily focuses its ventures in Hong Kong and has largely been immune to the epic building that has happened in mainland China.  Instead, Hong Kong’s real estate market, which has come off of its highs prior to the financial collapse, the market has stabilized and economic activity has been expanding again.  

 market services   hopewell holdings industrials infrastructure operations

China New Borun Corporation (New Borun) (BORN) produces edible alcohol products.  The company also produces crude corn oil and other alcohol by-products.  The company has a market capitalization of $32 million, so is smallish.  Their stock is traded at $1.27 per share.  

The EPS ratio and the company’s earnings are what caught my eye.

 forecast retail   china new consumer defensive beverages - wineries & distilleries beer and liquor

PDL BioPharma is an interesting company.  They really do not make anything.  Instead, the finance patents within the pharma industry, providing financial monetization of royalty streams to companies and academic institutions.  Their market capitalization is $365 million and the stock is trading at $2.20 per share.  

Basically, what the company does is it finds patents that an institution or company has filed and then PDLI monetizes that patent.  Then, the company licenses the patent out taking in a spread between what the company pays to the patent holder and the fees collected by companies using the patent.  They are a middleman for the pharma patent industry.  

 

 valuation manufacturing   pdl biopharma healthcare biotechnology pharmaceutical products

Commonwealth Bank of Australia provides retail banking and financial services to personal, business and institutional clients.  The company has a market capitalization of $36 billion and a share price of $63.02.  

The bank is profitable.  In fact, it has very strong earnings, however they have been declining of late.  

 valuation finance   commonwealth bank financial services banks - global

I have been very bullish on real estate for some time.  Think of all of the money that was printed by the central banks around the world.  That was inflationary and the one thing that happens during inflationary times is that asset prices increase.  Real estate will be going up in price and there is already indications that home affordability is at near-record lows.  This is because there has not been any real development over the past many years after the real estate bubble from 2008.  Too many investors got their fingers singed from that and investment in development waned considerably.  Now, the players are back in building at decent levels.  But, the supply has not necessarily been able to keep up with demand.  

 forecast services   interrent real real estate reit - residential

Saratoga Investment Corp. is a specialty finance company. The Company is an externally managed, closed-end, non-diversified management investment company. The Company invests primarily in leveraged loans and mezzanine debt issued by private middle-market companies in the United States.  The company is traded in the United States under SAR.  Its market capitalization is $122 million and its stock is traded at $21.75.  The objective of this fund is to earn income through the debt payments.  To a lesser extent, they company does try and earn capital appreciation, however, that is a smaller portion of the company’s focus.  

 

 leverage finance   saratoga investment financial services asset management

UOL Group is a property and development company.  The company focuses on management of properties in the hotel management industry.  They are mostly located in Singapore and Hong Kong.  

Property has been declining in China and Singapore of late.  But, that trend is likely to wane since the economy in the United States is improving as it is.  Keep in mind that China is the manufacturing capitol of the world.  As the economy in the United States improves, so will the economy of China, which has already shown signs of strong growth over the past two quarters.  Plus, the economy of Singapore has been improving even more during the same period.  This will allow UOL to increase its revenues and earnings, shown here, respectively:

 advice finance   uol group real estate real estate - general

The industry average is where I look to next to determine where this stock should be in relation to they earnings potential.  This company is trading at 6.83 times earnings.  The industry and sector averages, respectively, are trading at 64.14 times and 63.11 times earnings.  This stock is trading at 1/10th the industry average despite positive earnings and increasing earnings growth.  

Given the EPS ratio, if the company were to be trading at .5 the industry average, 30-times EPS, the stock would be trading at $15.00 per share, a nearly 1,000 percent return.  Keep in mind that only gets the stock up to half the industry average.  

 advice drugs   polydex pharmaceuticals healthcare biotechnology

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