KBW (KBW Inc)

KBW is a trading, research, and investment banker for small cap companies. The company has been profitable at least since 2001 although its earnings growth has been up and down. It came public at 21 on Nov 9th and immediately traded up from 25.50 to 27.50 its first day. The stock has taken some time to consolidate and settle down from erratic trading.

On Dec 15th the stock gave confirmation it was moving out of a pullback by trading up on strong volume. I took 5,100 shares (intending to take 5,000 but getting an order wrong) which is just less than a 2% position. It has since followed through but failed to overtake its high from the first of December.

The first few trading days this year have been difficult but volume has remained relatively tame so I am waiting and watching to see if it catches a bid.

Jan 10, 2007

The market had some strength today and most of the names I am involved with traded up nicely. KBW didn't get any interest at all and I am a bit uncomfortable with its lack of trading and lack of price movement so I put in a Limit on Close order and was executed at 28.70 to give me a small gain of $2,500 or so.