Top Picks 2018: Oppenheimer Holdings (OPY)

01/04/2018 5:00 am EST


Doug Hughes


Oppenheimer Holdings (OPY) is an investment firm focused on financial advisory services and asset management. The company remains under the radar, and I believe the stock is super cheap, explains Doug Hughes, editor of Bank Newsletter.

It may soon be a different story; with the relative strength building the stock may eventually catch the attention of investors that follow the technical charts. And with a tangible book value of $26 or so, the stock may also catch the attention of fundamental investors.

At Oppenheimer, the insiders always buy shares each and every year and never sell any shares. You have got to love that. The company even bought a bunch of its own stock back at low prices that were way under book value, adding to shareholder value.

Fair value for the stock in this market is $30.00 to $33.00, well above current price levels. With a takeover deal, however, I would expect they could get $38 a share at the low end and a high-end upside target of $44.

This investment bank is relatively small; as a result, I believe a deal is the thing that makes the most sense in this low interest rate world.

So, while the stock is certainly trading like a deal could come at any time, it is still cheap. Oppenheimer Holdings also does have options, which is rare with a smaller cap stock. As a result, you can make even more money with less capital. 

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