Broadridge Financial Solutions
BROADRIDGE FINANCIAL SOLUTIONS INC. $20 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 140.0 million; Market cap: $2.8 billion; WSSF Rating: Extra risk) provides communication, processing and other back-office services to the investment industry. These services help reduce the need for its clients to make significant capital investments in operations infrastructure, thereby allowing them to focus on core business activities. Broadridge’s clients include 250 banks, 500 mutual fund families and over 5,000 publicly listed companies. Broadridge began trading on April 2, 2007 after former parent Automatic Data Processing Inc. distributed its shares to its own stockholders as a special dividend....
It was an unsettling week, but the market ended up in the middle of the range it has stayed in since its January 21 plunge. No one can predict these things consistently, but I still think we are much closer to a bottom than a top. To put it another way, if I had to choose between “buy” and ”sell”, I would definitely say “buy”. DOREL INDUSTRIES, $29.80, symbol DII.B on Toronto, is entering the premium racing and mountain bike market with its acquisition of Connecticut-based Cannondale Bicycle Corp. for $190 million to $200 million U.S. in cash. The purchase also includes Sugoi Performance Apparel, which makes high-end clothing used by cyclists, triathletes and fitness enthusiasts. The final price will depend on Cannondale’s earnings for the twelve months ended June 30, 2008. Cannondale will add as much as $0.09 a share to Dorel’s annual earnings....
It was an unsettling week, but the market ended up in the middle of the range it has stayed in since its January 21 plunge. No one can predict these things consistently, but I still think we are much closer to a bottom than a top. To put it another way, if I had to choose between “buy” and ”sell”, I would definitely say “buy”. DIEBOLD INC. $25.49, New York symbol DBD, plans to cut its workforce by 5%, mainly due to slow demand for its electronic voting machines and delays in installing a lottery system in Brazil. This latest move is in addition to Diebold’s earlier plan to cut costs by $100 million over three years. Diebold has not issued financial statements since April 2007, due to an SEC investigation into the way it recognizes revenue from sales of ATMs and surveillance systems. The company expects to catch up with its reporting in the next few months....
BROADRIDGE FINANCIAL SOLUTIONS INC. $22 (New York symbol BR) specializes in three areas of service to the investment industry: investor communications; securities processing; and transaction clearing, trade settlements and other back office operations. Broadridge’s systems help both large and small clients cut their costs while it profits from the continuing fall in the costs of computing. We’re adding it to our Aggressive Growth Portfolio. Best Buy. CINTAS CORP. $32 (New York symbol CTAS) has paid a dividend each year since it became a public company in 1983. The new annual rate of $0.46 a share, up 17.9% from $0.39, yields 1.4%. Buy. GAMESTOP INC. $52 (New York symbol GME) reported a 20% increase in same-store sales for the nine-week period ended January 5, 2008, thanks mainly to lower video game console prices. However, GameStop faces strong competition from discount retailers and online services that let users download games. Sell.
BROADRIDGE FINANCIAL SOLUTIONS $22.57 (New York symbol BR: SI Rating: Extra risk) (201-714 3000; www.broadridge.com; Shares outstanding: 139.4 million; Market cap: $3.1 million) specializes in three areas of service to the investment industry: investor communications; securities processing; and transaction clearing, trade settlements and other back office operations. Clients include 250 banks, 500 mutual fund families and 5,000 publicly listed companies. Broadridge began trading on April 2, 2007 after it was distributed as a dividend or spinoff to shareholders of New York-listed ADP. Broadridge has built its business over 40 years as a subsidiary of accounting industry leader ADP. As well, spinoffs often beat the average for several years after investors receive them from the parent....
BROADRIDGE FINANCIAL SOLUTIONS $22.57 (New York symbol BR: SI Rating: Extra risk) (201-714 3000; www.broadridge.com; Shares outstanding: 139.4 million; Market cap: $3.1 million) specializes in three areas of service to the investment industry: investor communications; securities processing; and transaction clearing, trade settlements and other back office operations. Clients include 250 banks, 500 mutual fund families and 5,000 publicly listed companies. Broadridge began trading on April 2, 2007 after it was distributed as a dividend or spinoff to shareholders of New York-listed ADP. Broadridge has built its business over 40 years as a subsidiary of accounting industry leader ADP. As well, spinoffs often beat the average for several years after investors receive them from the parent. The company distributes over one billion investor communications each year, including investor account statements, trade confirmations and tax statements. Components of its securities processing services are used by seven of the top 10 U.S. broker-dealers. Broadridge mails and processes over 70% of all proxy votes. Its fixed income business processes trades with a settlement value of $2 trillion a day....
BROADRIDGE FINANCIAL SOLUTIONS $18.95 (New York symbol BR: SI Rating: Extra risk) (201-714-3000; www.broadridge.com; Shares outstanding: 139.3 million; Market cap: $2.6 million) reported an 8% rise in revenues for the three months ended June 30, 2007, to $780.3 million from $722.8 million from a year earlier. Excluding one-time items, profits rose 13.3% to $114 million or $0.82 a share from $100.7 million or $0.72 a share. Broadridge provides three types of services to the investment industry: investor communications; securities processing; and transaction clearing, trade settlements and other back office operations. The company’s systems help both large and small clients cut their costs while it profits from the continuing fall in the cost of computing. Broadridge is still a buy.
BROADRIDGE FINANCIAL SOLUTIONS $19.11 (New York symbol BR: SI Rating: Extra risk) (201-714-3000; www.broadridge.com; Shares outstanding: 139.2 million; Market cap: $2.7 million) reported 9.8% higher revenues in the three months ended March 31, 2007 to $499.4 million from $454.7 million. Earnings per share rose 25%, to $0.30 from $0.24. Broadridge trades for just 13.8 times the $1.38 it expects to make in the fiscal year ended June 30, 2007. The company has now set its initial dividend rate at $0.06 per quarter, for a current annual yield of 1.3%. Broadridge is still a buy.
BROADRIDGE FINANCIAL SOLUTIONS $20.68 (New York symbol BR: SI Rating: Extra risk) (201-714-3000; www.broadridge.com; Shares outstanding: 138.7 million; Market cap: $2.9 million) specializes in three areas of service to the investment industry: investor communications; securities processing; and transaction clearing, trade settlements and other back office operations. Clients include 250 banks, 500 mutual fund families and 5,000 publicly listed companies. Broadridge began trading on April 2, 2007 after it was distributed as a dividend or spinoff to shareholders of New York-listed ADP. Broadridge has built its business over 40 years as a subsidiary of accounting industry leader ADP. As well, spinoffs often beat the average for several years after investors receive them from the parent. The company distributes over one billion investor communications each year, including investor account statements, trade confirmations and tax statements. Components of its securities processing services are used by seven of the top 10 U.S. broker-dealers. Broadbridge mails and processes over 70% of all proxy votes. Its fixed income business processes trades with a settlement value of $2 trillion a day....