We all know that investment
banking means big bucks. Top
investment banking firms like
JP Morgan and Citigroup trade
for upwards of US$50 a share
and have multibillion-dollar
market caps.        Proven big-name giants con-
trol the funds to underwrite the
new wave of IPO’s and have
secured a relatively stable future, but how much growth can their shares really
expect to see? Goldman Sachs, for example, report-
ed more than US$23 billion in revenue and a solid
13% profit margin in 2003. Yet, with shares currently
trading above US$106, the chances of the stock ris-
ing 50% or more in the near future are slim.        As long as emerging companies want to break
out and grow, the need for investment bank backing
is critical. It’s not a market that’s going away.        And IPO’s are making a big comeback after a
long period of stagnation. Forty IPO’s emerged in
March alone, marking the busiest debut period
since late 2000. IPO’s need capital to get off the
ground, providing new profit opportunities for
investment banks.        We’ve found an affordable, cutting-edge small-
cap investment group that is currently trading under
US$2.50—and if trends continue, it could break into
double digits by the end of the year.        This securities broker investment group knew
they were on to something good when they got into
the broadband game a few years back. Offering an
exchange of leftover broadband frequencies from
the telecom bigwigs to the underdogs, the company
moved on to bigger and better things after profits
began to rise beginning in 2001.        Now turning their attention to focus on research,
securities brokerage and investment banking,
they’ve found even more success. The proof? Their 11 www.taipanonline.com MAY 2004 Next, page… (LTBG:NASDAQ). The number? Minus US$0.05.        One of the key things to look for when selecting
a stock is its potential for earnings growth. The
more the better. I’ll cut to the chase here: BCGI
expects EPS to reach US$1 by year’s end. By
Christmas 2005, BCGI’s EPS should be US$1.25.        Throw those figures into the Forward Earnings
Forecaster, punch a few buttons, and out comes
some great news: BCGI, in all likelihood, will be
trading at US$38.70 by next year. Sound unreason-
able? Well, listen to this: According to the Forward
Earnings Forecaster, BCGI is currently trading more
than US$10 below where it should be by December. And now for the perks… BCGI is absolutely loaded with extra financial numbers. I like to call them “deal sweeteners.”        First off, BCGI’s management is proving its worth
with an ROA of 11.47% and an ROE of 14.04%. For
those who might not know, ROA stands for “return on assets” and measures the overall profitability of
a company. ROE stands for “return on equity.” The
ROE is a rough estimate of how much investors are
realizing on a particular stock.        BCGI’s numbers? Compare them with their com-
petitors. INTV has an ROA of minus 9.04% and an
ROE of minus 43.80%.        Besides management effectiveness, BCGI has
some more tricks. Total cash is US$66.51 million.
Cash available per share totaled to the most recent
quarter is US$3.59. And here’s the real kicker: BCGI
has no debt.        The only thing that would make BCGI better is if
they paid a dividend.        When the idea of a wireless existence starts to
catch on, it’ll spread like a California wildfire. BCGI’s
got the goods. My long-term target for BCGI is
US$38.70. My shorter-term target is US$14.19.  In order to devote more of our limited print space to bringing you profitable news and information, we are moving the  Taipan  classified ads to our website, www.taipanonline.com. If you are interested in advertising with us, please      email Sara Nunnally at
snunnally@agora-inc.com. Taipan'sClassifieds Follow the insiders… and you could make
127% on this small-cap investment bank Erin Beale