Real estate and banks are going to do extremely well over the next several months and years. The money that was printed by the Federal Reserve and other central bankers is going to make its way into world-wide prices. Assets are going to be inflated to very high levels. Here is a company that is positioned to take advantage of that economic move.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as British or Global is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding British Land dividends
A dividend is the distribution of a portion of British Land earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. British Land dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. British one year expected dividend income is about USD0.09 per share.
Investing in stocks that pay
dividends, such as pink sheet of British Land, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in British Land must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for British Land. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is British Land's Liquidity
British Land
financial leverage refers to using borrowed capital as a funding source to finance British Land ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. British Land financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to British Land's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of British Land's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between British Land's total debt and its cash.
Correlation Between British and Global Net Lease
In general, Pink Sheet analysis is a method for investors and traders to make individual buying and selling decisions. Pink Sheet correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding British Land together with similar or unrelated positions with a negative correlation. For example, you can also add Global Net to your portfolio. If Global Net is not perfectly correlated to British Land it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When British Land, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both British Land and Global Net in your portfolio? Please note if you are using this as a pair-trade strategy between British Land and Global Net, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between BTLCY and GNL for more information.
Is British Land valued reasonably by the market?
British Land Company is a real estate company that either owns, develops or manages commercial properties in the United Kingdom and, more specifically, around London. Generally, it is a REIT, Real Estate Investment Trust. The current price of the stock is $7.52 per share and the market capitalization is $7.5 billion. Please note, despite this being a primarily British company, all numbers are stated in dollars.
I have been extremely bullish on two separate sectors over the past six months, that being financial (specifically banks) and real estate. Both of these two industries are well positioned to move upward quickly with the coming economic moves. But, the later will take a bit more time. Real estate will see increases more and more from price increases via inflation.
This company, when you look at their financial records, is increasing its assets and revenue in a consistent, methodical way. There were very large increases to its portfolio purchases and assets under management in 2012 going into 2013. The earnings show the increases, and so do the earnings per share.
Here are the assets versus liabilities over the past several years:
2012: $12,567 / $3,924
2013: $17,965 / $6,103
2014: $19,261 / $6,572
2015: $19,931 / $6,111
Sure, there is the “Wow, numbers went up” first glance reaction. But, what is interesting about this is the percentages and what they translate as a profitability end-result method. Look at the liabilities from 2013 - 2015. Relatively, the numbers are nearly the same from liabilities over that three year period. But, there was a far greater increase in assets during that time. This shows management is effectively using what it has to increase shareholder value.
But, when you look at gross earnings and earnings per share, you can see how this translates with what potentially may be your long term investment,. Respectively, here are gross earnings and earnings per share for the same years:
2012: $468 / $0.50
2013: $549 / $1.77
2014: $645 / $2.71
2015: $706 / $1.97
Management is effective at creating significant increases with cash and cash flow without any detrimental impact on earnings per share. But, and this is what gets me the most, the earnings-per-share is astronomical. Earnings of about $1.97 should be trading at $20 per share. However, this stock is trading at $7.52 per share.
This is the beauties of investing in sectors that really got hammered from the financial meltdown in 2008. No one even thinks about considering these stocks as potential additions into their portfolio. And, that is why I love these sectors.
From an economic standpoint, the Federal Reserve and the Bank or England, as well as nearly every other major central bank around the world, have printed up massive amounts of money to get their economies rolling. All that printing is going to turn into inflation once the economy starts moving forward. We are already seeing that being printed in the inflation data as of late. That will then turn into asset prices moving upward. Keep in mind the trillions of dollars that were invented from thin air over the past few years and have yet to be seen in the inflation numbers. Despite increases so far in CPI data, the economy is a long way from seeing its full potential of asset price increases.
BTLCY is already a great company to consider for your portfolio. Factor in the potential with real estate prices and economic growth and this stock could easily be trading at $30 by the end of the year. That kind of wealth creation does not happen too often. Add this to your portfolio as soon as you can and hold on.
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David Taylor is a Senior Member of Macroaxis 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.
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