Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks-- and the track records of the firm behind them -- so individuals can make better investing decisions.
In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 140,000 members, many of whom demonstrate better investing insight than published analysts do.
A few CAPS bears had been keeping the stock of Rodman & Renshaw Capital Group (Nasdaq: RODM) at four-star rank, but all 41 members who are rating the investment bank are now unanimously on the bullish side, giving it a five-star rating. So why the recent optimism, even if it is only a handful of investors?
Mostly it’s a case of being at the right place at the right time. The company provides investment banking services focusing on biotech companies with a long list of clients, including Cell Therapeutics (Nasdaq: CTIC), Spectrum Pharmaceuticals (Nasdaq: SPPI), and CEL-SCI (AMEX: CVM). The sector has been hot lately, and some believe that the growing biotech field will continue to bring in business to Rodman & Renshaw. The company recently announced record revenue in the third quarter, helped by strong demand to raise money.
The broader markets also have seen a recent uptick in mergers and acquisitions activity, which benefits not only large banks like JPMorgan Chase (NYSE: JPM), Goldman Sachs (NYSE: GS), and Barclays (NYSE: BCS), but also boutique firms like Lazard -- and potentially specialists like Rodman & Renshaw.
The stock has made massive gains in recent months, prompting some investors -- including a couple of company executives -- to sell off shares. But the management team still retains a sizable stake in the company. In addition to the biotech sector, Rodman & Renshaw aims to bring in more business from other sectors such as energy and clean technology. And amid an increasing number of stateside IPOs by Chinese companies, Rodman & Renshaw is also considering opening an office in China, to tap the market of Chinese companies looking to raise capital in the U.S.
Do you think Rodman & Renshaw deserves five-star status? Add your thoughts in the comments box below on this page, or head over to CAPS to rate the company.
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