LaBranche & Co., Inc. is a specialist firm on the New York Stock Exchange. As of 3/00, LAB acted as a specialist in 413 common stock listings. For the FY ended 12/31/00, total revenues increased 72% to $344.8M. Net income totaled $81.9M, up from $29M. Revenues reflect an increase in the net gain on principal transactions. Net income also reflects the absence of a $56.2M managing directors% compensation & a $25.3M limited partners charge.

February 15, 2001

Labranche & Company (LAB) is one of the leading specialist firms on the New York Stock Exchange. As many of our readers might already, the role of an NYSE specialist is to maintain a fair and orderly market for a particular security. Currently, LAB’s listed companies include 75 of the S&P 500 and seven of the 30 companies in the Dow Jones Industrial Average. Revenues for LAB advanced by 72% last year and are expected to climb by this same amount over the next 3 years. Additionally, the company has 48.98 million shares outstanding and 200 million shares authorized, which means we like the stock as a potential split candidate. The recent advance of the stock, not to mention today’s 8.57% breakout, gives us further hope that management might consider a stock split soon. With that said, we want to point out some of the important support and resistance levels we’re seeing on the chart. First, for resistance, we’ll look for strong barriers to arise at the $55 and $60 levels; advances through these levels on volume of 400,000 shares or better will set-off our entry signals. Next, for support, we can expect a good initial base to arise near the $50 mark, reinforced by the previous high of $49.19. Convergence of the 10 and 20-dma’s of $47.13 and $47.08 should provide a tougher foothold. A reversal off either of these support levels may present us with a buy opportunity, should good mid-day volume of 200,000 accompany the turn around.

Picked on February 15th @ $50.55
Change since picked 0.00
Stop Loss @ $44.50