Wednesday, April 20, 2016


I learned, after placing an order to purchase more shares of JMP, they were holding an earnings conference call after markets closed, on the very day I executed the buy order.  I was worried that might not work out in my favor, but it turned out pretty good.  While their reported earnings were down compared to last year and they cut the dividend by 25%, they also announced additional share repurchases and the dividend yield I'll be earning is still a generous 7%.  On top of that, the stock price jumped 6.37% in today's trading!  So I guess I'm not the only one who figured out insiders owning around 44% of the company, along with low P/E and low P/B, sufficient earnings to sustain dividend payouts and a generous dividend yield, adds up to a definite buy.

While it might seem like a negative to have lower earnings compared to last year, their earnings were down less than industry average.  With insiders holding such a large percentage of shares, I'm thinking their interests are very well aligned with the interests of shareholders.  So, while today's stock price performance may just be a fluke, I have a very good feeling about this investment.

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