5. Gleacher & Company (GLCH) is an investment bank offering advisory services to companies and institutional investors. It also provides capital-raising, sales and trading services.
For first-quarter 2011, the company's revenue was $94.7 million as compared to $79.3 million in the earlier-year quarter, led by fixed-income revenue and revenue related to ClearPoint, a mortgage company it acquired in January 2011. Net income for the quarter stood at $7.2 million, or 6 cents per share, as compared to a net loss of $211,000, or nil per share, in the year-ago quarter.
During the quarter, the company launched its residential mortgage banking initiative through ClearPoint and earned $5.4 million in principal transactions and commissions. Also, $900,000 was recorded in fees and other revenue due to fees earned on mortgage-lending services. Gleacher recorded $2.3 million as bargain purchase gain in the ClearPoint acquisition.Of the five analysts covering the stock, 40% recommended it as a buy while 40% rate it a hold. The stock's average 12-month price target is $3.2, or 69.3% higher than the current price, analysts polled by Bloomberg say.