I am not too high on buying stocks near their 52wk high, this one looks like it could drop a couple of bucks in a heartbeat.
I am getting more interested in the Navios (NM). George Soros and Ken Heebner both have positions in it. The story sounds pretty good, although all these shippers are tied to China (although China could run for another year leading up to the olympics - just don't want to get caught once money starts flying out of stocks tied to its growth). I have to look into why the recent IPO, and how that might effect earnings. If I see Heebner continuing to add, I will probably jump on board (hopefully around $12)- the guy is the best money manager out there...
Not sure why I would buy SEIC when OPY does virtually the same thing and has a much better brand name and sells for so much cheaper.
We got a nice little pop on Friday, and I think we are good until Tues - when the fed cuts. But to tell you the truth, I think next year will be a down year overall. I am holding a lot of cash right now until things shake out a little bit more - Jan/Feb could be ugly. The only other thing that scares me a little with OPY is how much debt they are taking on with this deal. If things go south next year (a good possibility), this one is going to get hurt along w/all financials. Like I said, just got into OPY w/small position, and I think I will wait it out a little bit until I get a clearer sense of what the catalyst is going to be to make it go higher (maybe check to see if some small fund companies start making a move on it - like Royce).
I will tell you that one stock I have been in/out of the last 2 years that has treated me well has been Endeavour Mining Capital (EDV) - a small canadian merching banking stock. I think the risk/reward is a little better. Frank Holmes of GROW does advisory services for them. If credit is drying up like people say, this could be a pretty decent mover - provides funding for a lot of small mining/energy companies. Its risky and again, very small and can be manipulated like OPY (so use limit orders), but the P/E is something like 2 to 3. I am going to get back in slowely starting Monday.
The other stock that I was looking at that might be similar to OPY is Canacord Capital (CCI) in Canada (get the hint, I am into oversees stocks a lot more over the last 2 years). CCI is getting hit with some lawsuits right now, and the fear is that other investors follow suit and start suing management companies for misleading them. Look, it is ridiculous to think about, but I think there is going to be a rash of lawsuits across a lot of companies like this. So OPY might not be in subprime themselves, but you don't know what they were recommending to clients or what was going on behind the scenes. In fact, they could be perfectly clean but if this starts getting traction, watch out financials/asset managers.
Ben Stein has recently shed some light on GS about them selling the subprime conduits to investors, then shorting the paper themselves. Some call it good business (or hedging) - but congress will be on a witchhunt following the bailout (investors are going to be clamouring about how they wanted something safe to invest in and these managers were putting them in subprime). So there is more risk...