Your opinion on initiating a position.
Thanks very much
GCG is up 1.4% this year and up 18% in 52 weeks. Its business is of course closely tied to capital markets. With very low volume we are not so sure we would classify its performance as a 'break out' but it is showing some signs of life. Earnings vary, and are expected to show a steep drop off this year. But there are no analysts following the company so the consensus is just a Bloomberg estimate. We would consider the balance sheet very strong. The dividend was raised last year and the payout ratio is 50%. We would have little concern on the dividend. The issue is that two holders own 72% of the company, making trading thin and limiting institutional investor interest. It is also a fairly small company and the industry remains intensely competitive. Long term, the stock has done OK, but not amazing. It has doubled in the past seven years or so. Overall, we would only give it an 'OK' rating. Cheap enough, yes, but not much excitement here. So not really a growth stock. The 2.8% dividend is OK, but for income investors there are also higher yields elsewhere, so not the best income stock, either.