Mike the PhD

Piper Jaffray: A Good Opportunity To Profit From Market Pessimism

Piper Jaffray Co (NYSE:PJC) is a small cap (~$550M market cap) investment bank and asset management company that is one of the few financial sector stocks carrying an attractive valuation at this time. Earlier this year, the company's stock was a major winner having doubled over the course of the last year, (see chart below), but since that time the stock has fallen back dramatically mainly on concerns about adverse effects of rising rates on the firm. This one-off issue clouds an otherwise promising recovery for a financial firm that has rapidly growing revenues and is trading slightly below tangible book value, and considerably below book value (tangible and intangible assets).

Given this valuation gap between PJC and...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details