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SF, JEF, DHIL, GLCH, PNSN, COWN, Finance-Investment Brokers Stocks Undervalued

^{Published on 2011-05-19 07:20:27 - WOPRAI}
 

May 19, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Finance-Investment Brokers sector and these stocks are the most undervalued as of today. STIFEL FINANCIAL CORP (NYSE:SF), JEFFERIES GROUP INC (NYSE:JEF), DIAMOND HILL INVESTMENT GRP (NASDAQ:DHIL), GLEACHER & CO INC (NASDAQ:GLCH), PENSON WORLDWIDE INC (NASDAQ:PNSN), COWEN GROUP INC-CLASS A (NASDAQ:COWN) are all expected to go Up as they are Undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.

The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:

     Symbol     Company Name                        Last Close     Fair Value     Valuation                   Industry               
     SF         STIFEL FINANCIAL CORP               $40.12         $47.44         15.40% Undervalued          Finance-Investment Brokers
     JEF        JEFFERIES GROUP INC                 $23.14         $28.05         17.50% Undervalued          Finance-Investment Brokers
     DHIL       DIAMOND HILL INVESTMENT GRP         $79.40         $82.71         4.00% Undervalued           Finance-Investment Brokers
     GLCH       GLEACHER & CO INC                   $1.92          $2.57          25.30% Undervalued          Finance-Investment Brokers
     PNSN       PENSON WORLDWIDE INC                $3.44          $11.51         70.10% Undervalued          Finance-Investment Brokers
     COWN       COWEN GROUP INC-CLASS A             $3.91          $9.30          58.00% Undervalued          Finance-Investment Brokers

Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.

Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.

STIFEL FINANCIAL CORP (NYSE:SF) - Stifel Financial Corp., a financial holding company, operates as a retail and institutional brokerage, and investment banking company in the United States and internationally. Its Global Wealth Management segment provides securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance and annuity products. This segment also offers retail and commercial banking services to private and corporate clients, including personal loan programs, such as fixed and variable mortgage loans, home equity lines of credit, personal loans, loans secured by CDs or savings, automobile loans, and securities-based loans; and commercial lending programs, such as small business loans, commercial real estate loans, lines of credit, credit cards, term loans, and inventory and receivables financing. As of December 31, 2009, it operated a network of 1,885 financial advisors, located in 272 branch offices in 42 states; and 166 independent contractors. The companys Capital Markets segment provides research, equity and fixed income institutional sales and trading, investment banking, public finance, and syndicate services. It distributes proprietary equity research products to institutional investors; provides financial advisory services principally with respect to mergers and acquisitions, and the execution of public offerings and private placements of debt and equity securities; and co-ordinates managed equity and debt offerings. The companys customers include individual investors, corporations, municipalities, and institutions. Stifel Financial Corp. was founded in 1890 and is headquartered in St. Louis, Missouri.

JEFFERIES GROUP INC (NYSE:JEF) - Jefferies Group, Inc., together with its subsidiaries, operates as a securities and investment banking company in the Americas, Europe, and Asia. It operates in two segments, Capital Markets and Asset Management. The Capital Markets segment provides engages in securities execution operations, such as sales, trading, and research in equities, equity-linked, and fixed income securities, including investment grade corporate bonds, high yield and distressed securities, government and agency securities, mortgage- and asset-backed securities, municipal bonds, convertible securities, bank loans, leveraged loans, and emerging markets debt, as well as offers prime brokerage services. This segment also provides investment banking services comprising direct placements, private equity, private placements, initial public offerings, and follow-on offerings of equity and equity-linked convertible securities; debt financing for companies, governmental entities, and financial sponsors; and advisory services to buyers and sellers on sales, divestitures, acquisitions, mergers, tender offers, joint ventures, strategic alliances, and takeover defenses. In addition, this segment offers advisory services in connection with exchange offers, consent solicitations, capital raising, and distressed mergers and acquisitions activity. This segment serves investment advisors, banks, mutual funds, insurance companies, hedge funds, and pension and profit sharing plans. The Asset Management segment offers investment management services. This segment offers private fund products, such as long-short equity and fixed income funds. This segment serves pension funds, insurance companies, and private banking clients. The company was founded in 1962 and is based in New York, New York.

DIAMOND HILL INVESTMENT GRP (NASDAQ:DHIL) - Diamond Hill Investment Group, Inc., through its subsidiaries, sponsors, markets, and provides investment advisory and related services in the United States. It also provides underwriting, compliance, treasury, and fund administration services to mutual fund companies. The company provides its services to various clients, including mutual funds, separate accounts, and private investment funds, as well as offers advisory services to institutional and individual investors. It distributes its products through financial intermediaries, including independent registered investment advisors, brokers, financial planners, investment consultants, and third party marketing firms. The company was founded in 1990 and is based in Columbus, Ohio.

GLEACHER & CO INC (NASDAQ:GLCH) - Gleacher & Company, Inc., an independent investment bank, provides corporations and institutional investors with strategic, research-based investment opportunities, capital raising, and financial advisory services, including merger and acquisition, restructuring, recapitalization and strategic alternative analysis services, as well as securities brokerage for institutional customers primarily in the United States. It operates in five segments: Broadpoint Descap, Debt Capital Markets, Investment Banking, Equities, and Other. The Broadpoint Descap segment offers sales and trading services on a range of mortgage and asset-backed securities; the U.S. Treasury and government agency securities; and structured products, such as collateralized loan obligations and collateralized debt obligations, whole loans, swaps, and other securities. This segment also provides execution services for institutional investor customer trades. The Debt Capital Markets segment offers sales and trading on corporate debt securities, including bank debt and loans, investment grade and high-yield debt, convertibles, distressed debt, preferred stock, and reorganization equities. The Investment Banking segment provides a range of financial advisory services in regards to mergers and acquisitions, restructurings, and corporate finance-related matters. This segment also raises capital for corporate clients through underwritings and private placements of debt and equity securities. The Equities segment provides sales, trading, and research on equity securities and offers services for corporate repurchase activities. The Other segment provides early-stage growth capital to companies. The company was formerly known as Broadpoint Gleacher Securities Group, Inc. and changed its name to Gleacher & Company, Inc. in May 2010. Gleacher & Company was founded in 1952 and is headquartered in New York, New York.

PENSON WORLDWIDE INC (NASDAQ:PNSN) - Penson Worldwide, Inc., through its subsidiaries, provides various critical securities and futures processing infrastructure products and services to the financial services industry. Its products and services include securities and futures clearing and execution, clearing and custody services, trade settlement, technology services, risk management services, and customer account processing and customized data processing services, as well as financing and cash management technology and other related products. The company also participates in margin lending, securities borrowing, and lending transactions, primarily to facilitate clearing and financing activities, as well as provides tools and services to support trading in multiple markets, asset classes, and currencies. In addition, it offers Internet account portfolio information, holding and safeguarding securities and cash deposits, securities lending and borrowing, proprietary trading, futures products, and institutional and active retail front-end trading software products and services, as well as technology and data product offerings, including customizable front-end trading platforms, options and futures trade data, and order-management services. It serves online, direct access, and traditional retail brokers, as well as banks, institutional brokers, financial technology companies, and securities exchanges in the United States, Canada, Europe, and Asia. The companys securities and futures processing infrastructure products and services are marketed principally under the Penson name. Penson Worldwide, Inc. was founded in 1995 and is headquartered in Dallas, Texas.

COWEN GROUP INC-CLASS A (NASDAQ:COWN) - Cowen Group, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides alternative investment management, investment banking, research, and sales and trading services for its clients. Cowen Group, Inc. was founded in 1994 and is based in New York, New York with additional offices in Boston, Massachusetts; Chicago, Illinois; Cleveland, Ohio; Dallas, Texas; and San Francisco, California.

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