Holy smokes.............she's flying!!!!!!!!!!
From Briefing .com Story Stocks© Updated: 13-Jan-00
Quotes at time of story, top stories today: (FBR 13:41) (Day Trader 13:05) (AMAT 11:50)
(MAST 10:48) (UAL 09:54) (TOM 08:55)
13:41 ET ******
Friedman, Billings, Ramsey Group (FBR) 8 1/16 +1 3/16: If you've read our In Play page
(and shame on you if you have not) then you know that FBR's move today is a reaction to
company announcement that it will trounce street expectations in Q4... Bottom-line, the
company sees its bottom-line in the $0.18 to $0.21 a share range versus the First Call
consensus estimate of a $0.02 a share loss... Why was the street so far off? Well, 4 of the 16
companies FBR Technology Venture Partners have invested in went public, turning the fund's
investment of less than $9 mln into stakes valued at approx $170 mln... Combine that with the
company's cash holding and you get about $4 a share in value... That puts the value of the
remaining business at roughly $4, or only 2x trailing twelve month sales... Compare that to Wit
Capital (WITC) which trades at nearly 13x sales, and you can see that there is plenty of room
for multiple expansion... Especially when you consider that fbr.com is just ramping up... To
date, the company has participated in 24 online offerings, with another six expected shortly...
Meanwhile, FBR just introduced Offering MarketplaceSM, a new online distribution system
that enables new issues to be distributed to millions of investors in a matter of seconds... FBR
also recently took a stake in, and formed a strategic alliance with, London-based Dawnay, Day
Lander Ltd. (DDL), the U.K.'s first Internet-focused corporate finance and venture capital
firm... If they can translate the success they've enjoyed domestically into success overseas,
company well-positioned to enjoy continued earnings growth... However, should note that
reliance upon investments for earnings growth increases the uncertainty and risks surrounding
quarterly numbers... Nevertheless, today's bullish news should keep the stock running for the
short-term at least... Especially given that today's gap higher on big volume propelled the stock
through key resistance... Establishes near-term target of 10 1/2 to 11. -- RW
13:05 ET ****** |
