Someone ask me why I am bullish on GFIG. The short answer is that GFIG makes money on every security transaction it handles and as the market investors return to stocks as a investment vehicle, GFIGs commissions will continue to rise in volume and return GFIG to normal levels of income that drove this stock to 100 dollars a share just 2 years ago. There are unknowns, that is what investing is all about. Some look at a glass half empty, some half full. I believe GFIG as a company is half full and it will fill up quicker than some might think. Posted Aug 6 on my blog: From the think-0-lator at Quicken.com: If we assume initial earnings of $53.1M grow at a rate of 25.70%, and we discount those future earnings at a rate of 16.00%, we arrive at a net present value for the company's next 10 years of earnings of undefined. To account for potential earnings beyond the 10th year, we estimate a growth rate of 6.00%, a discount rate of 12.00%, and we arrive at a continuing value of undefined. To complete the calculation we add these two figures together, subtract the long-term debt for GFIG ($59.50 million), and divide by the outstanding shares (117.9 million) to get a per share intrinsic value of $24.44. This price brings GFIG back in line with it's pre-split price. I think it is very reachable in the next 12-18 months given that the market is starting to gain some footing again. Keep your eye on this one. I am also evaluating CRY right now but it won't let us purchase shares online for some reason...I am looking into it. This is a 5.00 stock with a value around 19.00. http://tradingstocksplits.blogspot.com
$6.99 (08/24/09)
