Shaun Currie, CFA
Long/short equity, hedge fund analyst, momentum

JMP Group: Industry Tailwinds And Company-Specific Catalysts Should Boost Stock 50%

In the past, I have talked about some of the key characteristics I look for when buying a stock. After reviewing JMP Group (NYSE:JMP), I see many of those characteristics:

  1. A company that has fallen out of favor
  2. A company that has major catalysts on the horizon
  3. A compelling valuation
  4. A stock that is supported by a floor, reducing downside risk
  5. Insider buying
  6. Lack of sell-side coverage

Since its IPO in 2007, JMP's stock is down over 40%. The company came public just before the banking crisis, but managed to weather the storm while keeping its business intact. Now that the credit and equity markets have regained their health, capital inflows are again positive at the company's asset...

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