LaBranche & Co., Inc. (LAB)
The Company operates principally in two separate segments: the Specialist and Market-Making segment and the Execution and Clearing segment.
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So bad, it cannot help but improve. Hoping for buyout...maybe by current management.
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Turnaround time.
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wcf lab bac cake
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Market cap less than half the book value. Holding more than 3 million NYX shares and a lot of cash. Specialist and Market-Making future less bright compared to past however competitors exiting the business, and new opportunities may level-off.
I do not think this is a growth stock but the negativity has been factored in the price so much that it is hard to pass this stock.
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Graham's net-net
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Even I think there comes a time when a company gets so undervalued relative to its peers that all the negativity gets priced into the stock. LaBranche is basically the dog of the brokerage investment house sector, make no mistake about it, but every once in a while a dog will bring you back a bone without you asking it to do so. There is plenty of sustainable cash here to weather any large credit problems in the sector and any quarterly losses which so far have been minimal at the most. Profitability will return in late 2007 and definitely in 2008 and with the stock trading at 30-35 times my projected 2008 target I think the time to begin buying is now. Its trading well below its book valuation and its not like these guys are new to the business...they've been doing this for 83 years so trust me, they are a name to stay or be purchased for a premium.
Nero
Sagetrade
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NYSE specialist made money trading last quarter after netting out huge intangible writeoffs. Between wage expense reductions (firings) and the company FINALLY adapting to the reality of the electronic market, the company should trade at higher than last sale of $6+. Also, liquidation value is around $7.
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Nice cash reserves, nice cash flow. Nicely Undervalued. I'm willing to throw my money into this stock
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Unfortunately, this particular company is under assault. However, if you take a look at its book, it has more cash than its current SE which means it has enough resources to make a turnaround. I'm willing to bet that this stock will outperform the SP500 over the long run. I'm in!!
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Specialists are an endangered species
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Recent earnings dip provides a good entry point for this stock as it recovers from a history of regulatory issues. Specialists aren't about to disappear from the market.
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$3/share in NYSE Stock for a 8.50/share stock??? You end up paying 5.50 for the company that most think will cease to exist as automation within trading & exchangs happen. Most don't realize they are changing as the business changes and focusing on etf's and options. There will alwys be a need for the specialist, their role will just change over time. This stock seems to now trade in line with NYX stock and the NYSE will only get more profitable and increase margins as it consolidates its acquisitions

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