I have been looking at this Board for a while and notice some good postings and many that are ridiculous and off-topic. This should be a forum for serious investors and not those interested in rumor or speculation.
It appears that Penson has turned in an execllent fourth quarter 2007. Net Income Applicable To Common Shares $10,194 = 40c EPS this is 35% ahead of Q2 and 5X Q3 (Q3 Not meaningful).
The Compnay trades at a mkt cap of $210MM yet has a book value of $265MM at Dec 2007.
Penson is a little gem of a stock that is trading below its book value yet shows excellent potential and growing top and bottom lines.
A conservative price target would be 10X $1.50 expected '09 earnings or $15.00. For the patient investor, a near 100% rally from these depressed prices should not be unattainable.
I too am impressed with last year's activity and the first quarter figures for 08 as well. As much as this stock has declined from last year it appears to have a large upside potential. Few weaknesses that I can see.
If the Fed is done cutting i rates, and that is not entirely certain, then interest income should not decline further. Inflation should cause the Fed to tighten (raise) i rates by the end of year becauase at that point inflation not recession sahgould be the bigger worry.
New to the board, you seem to have done some research, so I have a question for you plus a comment. How many correspondents does PNSN have? How many have a majority of their business in the futures game?
Comment- there website is weak, management seems oddly regional. Competition from Pershing, Fidelity, First Clearing is tough. Why do you see them being successful?