SwingTrade Member Forum

[Rawnoc]

RODM - thoughts as of 9/20/09:

RODM -- Investment banker (#1 in PIPE transactions by volume) that's suddenly making massive money hand over fist and growing fast, beautiful balance sheet, annualized earnings last Q = $1.26/share with the next Q no doubt IMO will be much bigger. They have a lot more deal flow this Q so I think earnings could be as high as +.50 EPS for this Q for an annualized PE of just over 2. RODM to $20 very possible IMO

Consider the sudden massive surge in deal flow...

Q1 $58.4 million
Q2 $399.4 million (despite being a seasonally weak period)
Q3 Already close to $500 million as of this post.

Website:
http://www.rodmanandrenshaw.com/

Transactions:
http://www.rodmanandrenshaw.com/recenttrans

Keep in mind -- each deal deal/transaction RODM makes = stock symbol is put in the financing PR of that public company and RODM appears on more and more radars. They have been announcing and completing huge deals left and right with public announcements that make tracking their business easy to follow.

RODM 7/8/09 conference call... a few of interesting tidbits:
--Emphasized that current operating cash costs are fixed at $6 million per quarter.
--Emphasized headcount ended Q2 identical to Q1.
--Their "level 3 assets" are warrants in liquid publicly traded companies with a very active market and are "very easy to sell"
--Q3 is normally a seasonally slow period (my comment -- yet it appears the total transaction value is going to nicely break that of Q2's fanastic performance)
--Good number of potential deals out of China in the coming months and quarters.

Dare I say they may smash my original EPS guess of +.50 for an annualized EPS of $2.00???

$20+ coming IMO

PS -- An excellent point I read elsewhere -- with the credit markets still so tight, it makes the demand for PIPE deals all that much stronger. Where normally companies would turn to banks for financing, they are now and will be turning to companies like RODM instead as it's the only game in town available to a lot of them. I think a lot of people are underestimating both the staying power and near term growth potential of RODM -- this isn't just about a backlog of equity financing that was temporarily delayed to this quarter. This is about replacing the debt markets which is suddenly absent for many. See this blog: http://theperfectstock.blogspot.com/