oops it looks like even mgmt was blindsided
dude no company growing at 70% should post a profit. it makes no sense to post a profit when that kind of growth opportunity exists.
they have really focused on the low-margin businesses and have close to nothing in higher margin advisory. cowen didn't manage a single tranactino this quarter in advisory. meanwhile jmp, a bank with much smaller footprint, did $12M in advisory. cowen is so far from 10% rote that its really kind of embarrassing.
the conf call was brutal . . . they are on borrowed time, management is as far away from 10% ROTE as ever. they need to do something like tender offer.
that's for the rest of 2016
that's not really the net tangible. take out the deferred tax asset of $127M plus dilution from recent acquisitions (another $12M) and the recent trading losses and I think tbv is closer to $4.75, something like that. and that doesn't deserve a 15x mulitple (on earnings) because mgmt is so bad. this stock is unbelievable below where it was at 2009 lows. wow. and now with biotech bull market over, cowen is in a bad place.
if you take the production and then figure the rest of teh production to sell at same price that gets you to $200M so even net of cash the production alone worth about $3.