I have been looking at CLMS, as well as other asset management stocks; CLMS in particular has been pummeled...assets have declined from $49 bil to $26 bil (Oct. 07 to Oct. 08) - yet the stock price has fallen from the mid-20s to $3/share. Seems overdone, imo. Given the high ownership stake that John and Nick have in the firm, I would think that they are properly incentivized to turn this ship around. At $3/share, this is basically a call option on the firm's survival. Of course, the market could continue to drop another 30%-50% from here - but I am not thinking that will be the case. Comments? Rich
I like the fact that they seem to be the leader (or one of the leaders) in the convertible investment field. Also since they have a large equity stake and have many years of history in this field. Bought in abit too early but its ok since it is for my long term investment.
I have them from their IPO, added to my position of IPO to avg. down but still under water with it. but knowing them helps me sleep well. If it goes to 1.75 to 2.25 I will buy 10 fold to make sure Im set well with my shrs. I think with in 2 to 3 years we will see the 40 again.
I also have been looking at CLMS, and it is unbelievable to me that it got to 2.55 yet I did not pull the trigger on the buy. I know John and the family will pull the rabbit out of the hat given time but at this time market is doing a number on them and there is not much they can do for the Sher holder but to stay the course and do what they do for the long run. I know for my own end if CLMS goes to 1.75 to 2.25 I will pull the trigger and bite the bullet and look at it as a long term investment. What it bugs me is if the family takes the CLMS back to privet and we are not able to pull the trigger.
The reason for my target of 1.75 to 2.25 is not because I think thats what they are worth, its due to looking at over all market place and other asset management stocks, and looking at some of the investments that they have made and at this time just dont pay to be in them but over time it will work.