KKR Financial Corporation (KFN): Today's Featured Financial Services Loser

The financial services industry closed the day up 1.4%. Merriman Holdings Inc ( MERR), Ameritrans Capital Corporation ( AMTC), MF Global Holdings ( MF), and China Direct Industries Inc ( CDII) were all decliners today within the financial services industry with KKR Financial Corporation ( KFN) being today's featured financial services loser. KKR Financial Corporation fell 5 cents (-0.6%) to $7.99 on light volume. Throughout the day, 660,103 shares of KKR Financial Corporation exchanged hands as compared to its average daily volume of 1.4 million shares.

KKR Financial Holdings LLC, together with its subsidiaries, operates as a specialty finance company with expertise in a range of asset classes. KKR Financial Corporation has a market cap of $1.4 billion and is part of the financial sector. The company has a P/E ratio of 3.8, equal to the average financial services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 13.5% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates KKR Financial as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally poor debt management and a generally disappointing performance in the stock itself.

On the positive front, Stream Global Services Inc ( SGS), Global Cash Access Holdings Inc ( GCA), Ladenburg Thalman Financial Services Inc ( LTS), and Fortress Investment Group ( FIG) were all gainers within the financial services industry with Goldman Sachs Group Inc ( GS) being today's featured financial services industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial services industry could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial services industry could consider Proshares Short Financials ( SEF).

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