The Barbarians At The Gate Are Cheap And Providing A 5% Yield

| About: KKR (KKR)
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I pride myself on being a contrarian investor. Given the election rhetoric around the "1%" and the excesses of Wall Street, what could be more contrarian that investing with the original "Barbarians at the Gate"? However, Kohlberg Kravis Roberts & Co. (KKR) not only has a cheap valuation, but also provides a robust 5% yield and improving technicals.

"Kohlberg Kravis Roberts & Co. is a private equity and venture capital firm specializing in acquisitions, leveraged buyouts, management buyouts, special situations, growth equity, mature, and middle market investments" (Business description from Yahoo Finance)

6 reasons KKR is a good pick up for income and value investors at $13 a share:

  1. KKR yields over 5% based on the last four quarterly payouts.
  2. Insiders have bought $1mm in new shares in the last nine months, all at higher prices.
  3. The eleven analysts that cover the stock have a $17 a share median price target on the stock. Oppenheimer just upgraded the stock to "outperform" and Argus initiated the shares as a "Buy" in June.
  4. The stock has a very low five year projected PEG (.25) and is cheap at just under 6 times forward earnings.
  5. KKR crushed earnings estimates during its last earnings report and Goldman Sachs and Deutsche Bank recently upped their quarterly earnings estimates on the stock.
  6. The stock looks like it has bottomed and has some momentum. It recently crossed its 50 day moving average (See Chart).

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in KKR over the next 72 hours.