by Sam Collins | December 18, 2013 1:15 am
Kohlberg Kravis Roberts & Co. (KKR) — This global investment company offers a broad range of investment management services to its fund investors and provides capital markets services. This year, it has been an active acquirer of Gardner Denver, several subsidiaries of Warburg Pincus, and others.
On Tuesday, S&P upgraded KKR to an “A” rating from “A-,” noting that it has “significantly expanded its business and improved its diversification in recent years, while its financial profile is strong, supported by low leverage and ample liquidity.”
KKR broke from a six-month consolidation in the form of a cup-and-handle in October, jumping from $21 to $24, where it consolidated until it broke out again on Dec. 10.
This week, the stock dropped from a high near $26 on Monday to a low of $23.69 on Tuesday, due to news of a deal to wholly acquire KKR Financial Holdings LLC (KFN). However, by the close, KKR had recovered all but $0.29 of the loss.
The stock has a trailing dividend yield of 6.5%. Buy KKR for a combination of growth and high yield.
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– Sam Collins, InvestorPlace Chief Technical Analyst
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