Broadridge Financial Solutions Inc. $14 – New York symbol BR

BROADRIDGE FINANCIAL SOLUTIONS INC. $14 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 141.4 million; Market cap: $2.0 billion; Price-to-sales ratio: 1.0; WSSF Rating: Extra Risk) offers services to the investment industry in three main areas: investor communications, securities processing, and transaction clearing. Broadridge mails and processes 70% of all proxy votes. Broadridge’s revenue in its first fiscal quarter, ended September 30, 2008, rose 4.7%, to $472.4 million from $451.2 million a year earlier. It typically sells its services under long-term contracts that provide it with steady revenue streams. This cuts its risk. However, earnings fell 1.1%, to $35.6 million from $36.0 million. The drop was mainly due to the timing of extra expenses stemming from investments in technology and new products. Earnings per share fell 3.8%, to $0.25 from $0.26 on more shares outstanding. The company will probably earn $1.48 a share in fiscal 2009, and the stock trades at 9.5 times that estimate. The $0.28 dividend yields 2.0%. Broadridge is a buy.

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