 |
|
|
What's nice about ATAX is that its |
|
|
assets are tax exempt. |
|
|
Released on Thursday, December 22, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - America First Tax Exempt Invest (NASDAQ:ATAX) – is trading at $5.08 per share (4:00 PM EDT, December 21st, 2011). It has a market capitalization of around $153 million and a price that is way above earnings, approximately 52 times to be exact. But the real gain here is not that earnings are so low, only about 10 cents a share, but the high dividend that this investment partnership provides. At 10% dividends, the company is able to produce great returns into your pockets, while still avoiding double taxation.
What's nice about this firm is it assets and investments are tax exempt, because they specialize in government sponsored mortgages. This allows them to remain tax exempt on their investments increasing the amount of immediate return they may recognize. Not having to deal with taxes on investments is a great asset any business should look for, it can make what would otherwise be a low return investment more profitable than a high return investment which also carries a higher tax rate.
Because the company is a Limited Partnership it functions as a flow through entity, while still allowing you to be a limited partnership. This allows further tax advantage implications as the LP can claim a portion of the loss on investments as a tax deduction and have their capital gains taxed at a reduced rate—or in this case not at all.
Now seems the perfect time for an entrance into the firm while the price is low. The MACD and the fast stochastic have indicated that the company is trading at its lows, a trend which might be coming to an end as the downturn troughs. Buying company shares when the stock is at a trough is generally the best position, as it will often provide the most gain and a small margin of error in the stock, should the stock take another downturn later. More importantly, the stock is trading at around its now 2 and a half month support of $4.95 per share.
Definitely some nice things here, dividends, and possible appreciation of the stock’s price—always a positive combination in a company.
Find more stocks on the SpeculatingStocks homepage.
Comments:
