Fbr & Co Com (NASDAQ:FBCM)

While I'm a decided bear on the overall financial services industry over the next year, I believe FBR Capital Markets has fallen enough to offer a signficant long term opportunity at its current $9.50 price. This is a classic "busted" IPO, no longer tied into the unattractive FBR Group with its mortgage problems. The metrics now work - almost two thirds of the company's current market capitalization is in cash - quite a cushion - with both price/sales and price/book under 1.30. Choppy ride ahead, but certainly shouldn't have more than another 10-15% downside, while the long term outlook for mid-market investment banking, brokerage and asset management should be robust. I expect to sell it in CAPS for a 15% gain, but real world investors will likely reap handsome gains for those with a 2-3 time horizon.