Chickens in China and Shipping Yielding over 11%
Yum Brands (YUM) reported earnings from LOUISVILLE, Ky. (AP) -- Fast-food company Yum Brands Inc. said Tuesday its third-quarter profit grew by 5 percent as surging sales in its operations in China more than offset a sharp decline in U.S. results.
Okay, so Chinese like YUM Chickens, in spite of the fact the stock has dropped over 35%. So what? It's not YUMs yield (2.50%). Not for us at the Yield Hoe anyway. But, it looks like Kentucky's own Col. Sanders is doing a better job than NYC's General Tso in China (yes, General Tso's chicken was most likely invented in NYC's Chinatown and largely unknown in China, the country). And YUM's earnings suggest that maybe all the overseas demand destruction certain Chicken Littles are predicting isn't as bad as it seems from the shifting precipice. Considering the popularity of YUM's chickens in China, Dow 5,000 may not be de facto.
That' brings us to slow boats to China, and shippers such as Excel Marine Carriers (EXM) that are yielding over 11%. EXM's P/E is less than 2. It's PEG ratio is an absurd .08. Those are not typos. It's debt to equity ratio is 1.33, and it has about 5% cash on hand to cover it's 1.6 billion dollar total debt. It's net income is 217 million, which is
True, TV Stock Jockey Cramer is bearish on shippers, and the Street points out the shipping index has dropped due to the buildup for the Olympics. China has inventory to work through in things such as Iron. But any overhang caused by ship building may be reduced as contracting parties break the deal with just in time reactions real demand decline.
What about Oil Tankers? Let's try a new format-- for example, consider, Teekay Tankers. It's dropped from 22 to 11ish level in the past 3 months.
TNK has 19 million cash on hand, and about 320 million in debt. Major holders in include
So, with all the blood in the streets, what about Real Estate. For example, Industrial REIT, First Industrial (FR) is yielding over 16%, with a P/E of under 5, and a PEG ratio of .85, and yet, it's net income is negative. Brandywine BDN, on the other hand, yield 14%, but with a P/E of 18, which isn't exactly cheap given the blood in the street. Duke yields 10%, but there again, its P/E is 19. Again, not cheap, given the blood. Liberty yield 8% and has a similar P/E. What all these higher P/E REITs have in common is positive net income to First Industrials -64 million. No screaming buys there, in spite of the blood.
Take the apartment sector-- Apartment Investment and Management (AIV). It yields 6.9%, but it's P/E is 15.41, and it's PEG ratio is 1.31, which doesn't really square with the blood in the streets. So I'm thinking blood in the streets does not always translate into the best time to buy real estate.
Nevertheless, speaking of blood in the streets, check out-- "Peace Frog", by the Doors:
Okay, so Chinese like YUM Chickens, in spite of the fact the stock has dropped over 35%. So what? It's not YUMs yield (2.50%). Not for us at the Yield Hoe anyway. But, it looks like Kentucky's own Col. Sanders is doing a better job than NYC's General Tso in China (yes, General Tso's chicken was most likely invented in NYC's Chinatown and largely unknown in China, the country). And YUM's earnings suggest that maybe all the overseas demand destruction certain Chicken Littles are predicting isn't as bad as it seems from the shifting precipice. Considering the popularity of YUM's chickens in China, Dow 5,000 may not be de facto.
That' brings us to slow boats to China, and shippers such as Excel Marine Carriers (EXM) that are yielding over 11%. EXM's P/E is less than 2. It's PEG ratio is an absurd .08. Those are not typos. It's debt to equity ratio is 1.33, and it has about 5% cash on hand to cover it's 1.6 billion dollar total debt. It's net income is 217 million, which is
True, TV Stock Jockey Cramer is bearish on shippers, and the Street points out the shipping index has dropped due to the buildup for the Olympics. China has inventory to work through in things such as Iron. But any overhang caused by ship building may be reduced as contracting parties break the deal with just in time reactions real demand decline.
What about Oil Tankers? Let's try a new format-- for example, consider, Teekay Tankers. It's dropped from 22 to 11ish level in the past 3 months.
| TNK | TEEKAY TANKERS CL A | Yield: 23.20% | Beta: 0 | P/E 5.44 | PEG Ratio: 0.37 |
TNK has 19 million cash on hand, and about 320 million in debt. Major holders in include
- IRIDIAN ASSET MANAGEMENT LLC
- NEUBERGER BERMAN, LLC
- GLICKENHAUS & CO
So, with all the blood in the streets, what about Real Estate. For example, Industrial REIT, First Industrial (FR) is yielding over 16%, with a P/E of under 5, and a PEG ratio of .85, and yet, it's net income is negative. Brandywine BDN, on the other hand, yield 14%, but with a P/E of 18, which isn't exactly cheap given the blood in the street. Duke yields 10%, but there again, its P/E is 19. Again, not cheap, given the blood. Liberty yield 8% and has a similar P/E. What all these higher P/E REITs have in common is positive net income to First Industrials -64 million. No screaming buys there, in spite of the blood.
Take the apartment sector-- Apartment Investment and Management (AIV). It yields 6.9%, but it's P/E is 15.41, and it's PEG ratio is 1.31, which doesn't really square with the blood in the streets. So I'm thinking blood in the streets does not always translate into the best time to buy real estate.
Nevertheless, speaking of blood in the streets, check out-- "Peace Frog", by the Doors:
Labels: china basic materials High Yield, DSX Dry Bulk Iron, EXM Excel Marine FR First industrial
posted by TheYieldHoe at
9:16 PM
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