A bank stock? In this market? Indeed preferred bank plays exist, with several community banks scoring high on that list. But it's understandable if you may want to avoid the investment banks for awhile.

Still, there are selected investment/commercial banks with superior business models, and among these the Bank of New York Mellon is worth a review.

Bank of New York Mellon (NYSE: BNY) is one of the world's leading asset management and corporate trust services banks, with an astounding $20 trillion in assets under custody and more than $1 trillion of assets under management.

In general, analysts expect BK's merger-adjusted revenue to rise about 8-10% in F2008, and 10-12% in F2009. Analysts also expect BK's merger with Pittsburgh-based Mellon Financial to enhance the company's business mix.

Further, the Bank of New York has also done a good job restricting non-merger expense growth, and it could also benefit as several competitors more-involved in the subprime mortgage sector struggle with credit-related issues. The Reuters F2008/F2009 EPS consensus estimates for BK are $2.99/$3.41.

The risks? A substantial decline in asset custodial activity and/or assets under management would hurt BK's results.

The First Call mean rating for BK is: Buy [20 firms]. Mean 2008 target: $51 [high: $60, low: $42].

Stock Analysis: Bank of New York Mellon is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from BK's shares. Sell/Stop Loss if you were to purchase shares in this company: $29.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.