The share price of Bank of New York Mellon (BK), which I first wrote about on April 6, 2009, at a price of $28.16, pulled back during the winter, in healthy correction fashion, after pushing through $30 resistance. I still like the business model at this juncture.

Founded by Alexander Hamilton, the Bank of New York, a premier bank and wealth manager, has a stock that's likely to reward patient investors. The bank's 2011 revenue should rise 10% to 15%, then about 8% to 10% in 2012, on higher fees and improving margins. Asset management fees in its equities and fixed income business should record solid increases, on price gains in those markets and due to increased client deposits. New business wins add to the positive mix.

The Bank of New York Mellon (BK) primarily competes with State Street (STT), JPMorgan Chase (JPM) and Citigroup (C) in the asset servicing business. The asset servicing fee charged by BNY Mellon was volatile from 2007 to 2009. Due to the long-term nature of asset servicing contracts, BNY Mellon is likely to give discounts on servicing fees in the short run to attract more clients. Additionally, with the rise in assets under custody, we expect to see a drop in servicing fees as economies of scale come into play with the asset industry becoming more technology-intensive.

We currently have a Trefis price estimate of $35.72 for The Bank of New York Mellon Corp.'s stock, which is about 12% ahead of the current market price.

The Bank of New York Mellon (BK), which I first wrote about on April 6, 2009, at a price of $28.16, has pushed through $30 resistance, and the business model is obviously still favored in this neck of the woods. Here's why:

Founded by Alexander Hamilton, the Bank of New York, a premier bank and wealth manager, is a good stock to be patient with. BK's 2011 revenue will likely rise 8% to 10%, then about 7% to 9% in 2012, on higher fees and improving margins. Asset management fees in its equities and fixed income business should record solid increases, on price gains in those markets and due to increased client deposits. New business wins add to the positive mix.

To paraphrase Mark Twain "The reports of our death are greatly exaggerated". The world economy has been in shambles for a few years now, and our nation has much work ahead of it. 2010 was an improvement over 2009 and I believe 2011 will show further improvement.

There are lots of ideas running through my mind as I consider where the economy might be heading in 2011. What opportunities lay in front of us waiting to be picked up or passed over? Just five trading days left, and market activity will slow down except among fund managers making adjustments for tax purposes or window dressing. You should examine your tax situation, too.

Analyst Upgrades

• SuperValu (SVU) to buy from hold at Hapoalim.
• Constellation Energy (CEG) to buy from hold at Citigroup.
• Doral Financial (DRL) to neutral from sell and ABB (ABB) to buy from neutral at Sterne Agee.

Analyst Downgrades

• American Eagle (AEO) to neutral from buy at SunTrust.
• Tenet Healthcare (THC) to market perform from outperform at Wells Fargo.

Patience appears to be paying off with the Bank of New York Mellon (BK), which I first wrote about on April 6, 2009, at a price of $28.16.

Moreover, the Bank of New York, a premier bank and wealth manager, is a good stock to be patient with. BK's 30% summer swoon found support, as forecast, near $23, and the stock has since moved back above $27 and the key, 50-day moving average.

Analyst Upgrades

• Piper Jaffray upgraded Salesforce.com (CRM) to overweight from neutral, citing valuation following the recent sell-off and strong business trends. The firm has a $115 price target for shares.
• Keefe Bruyette upgraded M&T Bank (MTB) to market perform from underperform on valuation after AIB sold its stake in the company. The firm has a $72 price target for shares.
• Jefferies upgraded OGE Energy (OGE) to buy from hold following the announcement that ArcLight will purchase 9.9% of OGE's interest in Enogex for $183M and believes this deal highlights the hidden value associated with Enogex. The firm raised its price target to $51.50 from $43.
• Thomas & Betts (TNB) was upgraded to outperform from perform at Oppenheimer.
• Bayer (BAYRY) was upgraded to buy from neutral at UBS.
• Texas Roadhouse (TXRH) was upgraded to outperform from neutral at Baird.

Typically, a stock that nose-dives 23% in three months would be cause for alarm, but not when the stock is The Bank of New York Mellon (BK), which I first wrote about on April 6, 2009 at a price of $28.16.

Just view BK's over-correction as a chance to scoop-up shares of a premiere bank and wealth manager.

Look for BK's 2010 revenue to rise about 7-10%, then about 10-12% in 2011, on higher fees and improving margins. Asset management fees in its equities and fixed income business should record solid increases, on price gains in those markets and due to increased client deposits. New business wins add to the positive mix.

Analyst Upgrades

• Deutsche Bank upgraded Barrick Gold (ABX) to buy from hold and reiterates a buy rating on Newmont Mining (NEM) after upping its 2011 gold forecast to $1,450 per ounce and 2012 forecast to $1,600 per ounce. The firm upped its target for Barrick shares to $53 from $45, for Newmont shares to $74 from $72, and on hold-rated Goldcorp (GG) and Kinross Gold (KGC) to $40 and $20, respectively.
• Citigroup upgraded General Dynamics (GD) to hold from sell following the recent pullback in shares. The firm keeps a $67 price target for the stock.
• UBS upgraded Public Service (PEG) to buy from neutral and has a $34 price target on the stock. The firm cites the company's solid balance sheet, earnings profile, and valuation for the upgrade.
• News Corp. (NWS) was upgraded to buy from hold at Soleil.
• AK Steel (AKS) was upgraded to neutral from underperform.
• Progress Energy (PGN) was upgraded to buy from neutral at BofA/Merrill.
• PNC Financial (PNC) was upgraded to outperform from market perform at Keefe Bruyette.

Typically, a bank stock that meanders for the better part of a year would raise a caution flag in these circles. But not so when that bank is The Bank of New York Mellon (BK), which I first wrote about on April 6, 2009, at a price of $28.16.

Look for BK's 2010 revenue to rise about 7% to 10%, on higher fees and improving margins. Asset management fees in its equities and fixed income businesses should record solid increases, on price gains in those markets and due to increased client deposits. New business wins add to the positive mix.

Last week, JPMorgan Chase & Co. (JPM) led off the coming parade of earnings from the big banks when it reported better-than-expected fourth-quarter and full-year earnings, though its revenue fell short of estimates.

Plenty more earnings from the financial sector are due out this week. Analysts surveyed by Thomson Reuters anticipate fourth-quarter earnings growth from American Express Co. (AXP), Bank of New York Mellon Corp. (BK), Hudson City Bancorp Inc. (HCBK), SLM Corp. (SLM) and US Bancorp (USB).

The Bank Of New York Mellon's (BK) stock has meandered since the April 6, 2009 buy call at a price of $28.16. With most other stocks, that would be a concern, but given the bank's track record, I'm obviously reiterating my buy rating.

Founded by Alexander Hamilton, The Bank of New York provides services that enable institutions and individuals to move and manage their financial assets in more than 100 markets globally. The core of BK's business, custodial services, is doing just fine, with more than $16 trillion in assets under custody.

The extended Buy opportunity continues at Bank of New York Mellon (NYSE: BK), and I'm Reiterating my Buy rating for the company's shares, first recommended on April 6, 2009 at a price of $28.16.

Founded by Alexander Hamilton, The Bank of New York provides services that enable institutions and individuals to move and manage their financial assets in more than 100 markets globally. The core of BK's business -- custodial services -- is doing just fine, with $16 trillion in assets under custody.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• AirTran Holdings Inc. (NYSE: AAI) reported its third consecutive quarterly profit and will increase capacity.
• Amazon.com Inc. (NASDAQ: AMZN) shares soared after it reported very strong Q3 numbers.
• Apple Inc. (NASDAQ: AAPL) reported stellar Q4 results, driven by the popularity of Macs and iPhones.
• BlackRock Inc. (NYSE: BLK) Q3 earnings soared, due in part to a tax benefit, and assets managed grew.
• Broadcom Corp. (NASDAQ: BRCM) revenue surged sequentially but note the would be flat going forward.
• Caterpillar Inc. (NYSE: CAT) beat Q3 earnings expectations and shares rose though revenue slumped.

Just call it an extended buying opportunity for one of the most trusted banks in the United States. I'm Reiterating my Buy rating for Bank of New York Mellon (NYSE: BK), first recommended on April 6, 2009 at a price of $28.16.

Founded by Alexander Hamilton, perhaps my favorite U.S. Constitution Framer, The Bank of New York provides services that enable institutions and individuals to move and manage their financial assets in more than 100 markets globally. The core of BK's business, custodial services, is doing just fine, with $16 trillion in assets under custody. The First Call FY2009/FY010 EPS estimates for BK are $2.06 to $2.51.