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Renewed M&A Activity Boosts Profits of Some Financials, But Goldman Still Lags Morgan

The best way to play the investment banking boom is with Rodman and Renshaw Capital Group (RODM). The amount of money in deals Morgan and Goldman have done is a bit misleading because they usually have to split there commission with 4 or 5 other firms. RODM has done just as many deals (albeit for less overall money), but for 90% of them they are the sole firm involved. At around 6% a pop, the earnings add up quickly. In RODM you get a stock that had an eps of $0.42 last quarter and this quarter they are on pace for $0.50 or better. All that for a stock at $5 a share.