Paul,
Based in Florida with newly opened offices in NY, JWC has a small, but stable and primarily wealthy client list. While they derive revs from trading, it is not the basis for their profits. They are highly respected as money managers, investment counselors, and market makers. Their growth has come because they make money for their clients.
While they have made good growth in revs, very good growth in earnings, the big thing is their per share growth for stockholders. They bought back a major portion of shares at a price under $3.00 on a low interest note payable, paid it off from profits, then issued a stock dividend to remaining shareholders. Most recently, they acquired AGRO in a stock swap that effectively sold JWC stock for $8.85 (market price was 7.50 where I bought it)and added almost $5M cash to their liquidity just before the market takes a dive. The monies were being invested (they hold a lot of securities) this past quarter and the results of these investments will be shown in '98. This is typical dealings for them.
Get this - most companies pay for a credit line. 1-2% even though they don't actually use the monies. JWC has a credit line but the bank holds some warrants on the company in lieu of interest and JWC handles all of the banks market activity (bonds, T-bills, etc.). The bank wants JWC to succeed because of the warrants, JWC gets substantial profits from clearing the banks business.
JWC is affiliated with Bear Sterns. JWC doesn't have access to all markets so they clear thru BS, BS uses JWC as a market maker for IPO's, secondaries, etc.
Just some of the things in my notes on them.
For what it's worth,
Ron
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