CLMS looks to me like it's ready for continued upside based on the incredible performance of its flagship funds in 2009. Calamos Growth is the #1 growth fund over ten years and is beating the average growth fund by more than 15% this year with a 45% gain.

Fund flows look better, and total assets are now above $30 B. (Check Calamos IR web site for details.) Also, recent Merrill Lynch upgrade indicates that Merrill's brokers sales arm probably buys the Calamos story.

CLMS is priced at 50% of its peers based on price/sales. Look for that gap to narrow. Possible drivers include cost-cutting showing up and the possibility of a buyout / partnership with a bigger firm that can help add marketing dollars behind the funds' great performance.