Company Spotlight: BGC Partners, Inc. (BGCP)

BGC Partners, Inc.

is a global financial intermediary to the financial markets specializing in the brokering of a range of financial products, including fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commodities, futures, structured products and other instruments. It also provides a range of services, including trade execution, broker-dealer services, clearing, processing, information, and other back office services, to a range of financial and non-financial institutions. Return of Cash: • Dividend Yield: 9.38% • Dividend Growth: 55.6% year over year • $8 million of stock repurchases in 2009; $13 million (so far) in 2010 Valuation: • P/E: 10.12X • Forward P/E: 8.18X • 5-Year growth rate: 12.50% • PEG ratio: 0.654 Revenue and Earnings: • Q2 Revenues up 14.4% year over year • Q2 Pre-tax earnings up 44.7% year over year • Q2 Post-tax earnings up 63.0% year over year Balance Sheet: • $1.006 billion in cash • Long-term debt at 9.35% (0.11x) of total assets; 39.3% of Property/Equipment Assets • Debt to equity of 0.55x Technicals: • The stock has been rallying for the past two years and is currently trading above the 18, 50, and 200-day moving averages. On a shorter-term basis, BGCP appears to be in the middle of a bottoming pattern, with an upside price target around $6.50 (8.9% upside). $5.00 is a key resistance come support level. Wondering how Benzinga's Chief Options Strategist is playing BGC Partners?

to find out…