Financially sound: Robert McMillan of Standard & Poor's analyzes some banked profits in the financial sector.When Standard & Poor's analyst Robert McMillan agreed to provide BLACK ENTERPRISE with an exclusive portfolio of stocks last year, he told us that a slow economy doesn't always damage the productivity of every firm in an industry. He thought brokerage firms might move in tandem Adv. 1. in tandem - one behind the other; "ride tandem on a bicycle built for two"; "riding horses down the path in tandem" tandem with the market in 2004, while the short-term future of consumer credit companies was bright because interest rates were at their lowest levels in years and lenders could borrow money cheaply while benefiting from charging their customers higher rates. Though he no longer works with the companies he gave us, McMillan was successful at finding firms that maintained their productivity--his five stock selections saw a 13.3% increase over the 52-week period from July 22, 2003, to July 23, 2004. By contrast, the S&P 500 rose 9.9% and the Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. index jumped 8.8% during the same period. And the analysts at S&P are still bullish on his entire portfolio. Conflict and scandal have not been kind to Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. (NYSE NYSE See: New York Stock Exchange : MER mer Among the Cheremi and Udmurt peoples of Russia, a sacred grove where people of several villages gathered periodically to hold religious festivals and sacrifice animals to nature gods. ). The once undisputed leader of brokerage companies has been battered by a firestorm of bad publicity. The result has been a 7.5% slide in the value of its shares, from $52.92 to $48.95. To improve its image, Merrill has partnered with the highly-regarded Morningstar Inc. to offer unbiased research. "We think Merrill Lynch is benefiting from an improving economy, increased investor confidence, and prudent expense growth," says S&P's Robert Hansen This article is about the convicted killer. For the basketball player, see Bob Hansen. For the spy, see Robert Hanssen. Robert Christian Hansen (b. February 15, 1939, in Estherville, Iowa) is an American serial killer who flew his victims into the Alaskan wilderness and , CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. . Merrill is rated a "buy" with a $60.00 12-month price target. Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. Holdings' (NYSE: LEH) acquisition of Neuberger Berman Inc. in 2003 helped push the investment bank's assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. past the $116 billion mark. "We expect higher advisory fees in fiscal 2004, given the higher value of merger and acquisition deals [that have been recently] announced," says Hansen. Lehman stock has risen 9.2% since McMillan's recommendation, going from $63.70 to $69.56, and S&P now gives it a price target of $115. Capital One Financial Corp. (NYSE: COF) is one of the top six credit card issuers in the U.S. It boasts 47 million customer accounts and provides mortgage services, auto financing, and other consumer lending products. Consumer demand for these products catapulted the company to a 40.4% gain, jumping from $48.41 to $67.97. "We see improving credit trends, continued strong consumer spending, and historically low interest rates aiding results," says S&P analyst Evan Momios, CFA. MBNA MBNA Monument Builders of North America MBNA Mercedes-Benz North America MBNA Maryland Bank, National Association MBNA Maryland Bank North America MBNA Mount Baker Nurses Association (Bellingham, Washington) Corp. (NYSE: KRB KRB Krebs Ringer Bicarbonate ) is a holding company with three primary banks, and it's the largest independent credit card lender in the world. More than 5,000 groups endorse MBNA products worldwide. Company shares grew 11.7% from $21.75 to $24.30, and S&P believes its stock price could reach $32.00. "We believe KRB shares are trading at a discount, to its peers," says Momios. "What MBNA's current valuation does not reflect is the company's better-than-peer-average credit quality and its ability to generate peer-average volume." Legg Mason Inc. (NYSE: LM) is a financial services firm with subsidiaries that offer asset management and private client and capital markets services and products. It is expected to build on its 12.8% increase, going from $70.01 to $79.00. Analysts for S&P anticipate a 5% to 10% annual net growth in brokers and a 50% dividend increase to help the stock reach its price target of $95. Private Screening Performance TOTAL RETURN: 13.33% CURRENT VALUE OF $5000 INVESTMENT: $5,666.67 NYSE COF 07-22-03 $48.41 07-23-04 $67.97 TOTAL RETURN: 40.40% CURRENT VALUE OF $1000 INVESTMENT: $1,404.05 NYSE KRB 07-22-03 $21.75 07-23-04 $24.30 TOTAL RETURN: 11.72% CURRENT VALUE OF $1000 INVESTMENT: $1,117.24 NYSE LEH 07-22-03 $63.70 07-23-04 $69.56 TOTAL RETURN: 9.20% CURRENT VALUE OF $1000 INVESTMENT: $1,091.99 NYSE LM 07-22-03 $70.01 07-23-04 $79.00 TOTAL RETURN: 12.84% CURRENT VALUE OF $1000 INVESTMENT: $1,128.41 NYSE MER 07-22-03 $52.92 07-23-04 $48.95 TOTAL RETURN: -7.50% CURRENT VALUE OF $1000 INVESTMENT: $924.98 * TOTAL RETURN REFLECTS STOCK APPRECIATION AND INCLUDES STOCK SPLITS AND DIVIDENDS. SOURCE: PIEDMONT INVESTMENT ADVISORS; YAHOO! FINANCE Note: Table made from line graph. |
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