Continue reading The Bank of New York Mellon Is Undervalued

The Bank of New York Mellon Is Undervalued originally appeared on BloggingStocks on Thu, 14 Jan 2010 17:30:00 EST. Please see our terms for use of feeds.

Continue reading Bank of New York Mellon (BK) reports weak Q2 earnings, slashes dividend

Bank of New York Mellon (BK) reports weak Q2 earnings, slashes dividend originally appeared on BloggingStocks on Wed, 22 Jul 2009 13:00:00 EST. Please see our terms for use of feeds.

Late Monday, The Bank of New York Mellon Corporation (NYSE: BK) unveiled its plan to sell $1.2 billion worth of stock in order to repay its TARP loan to the U.S. Treasury Department. The company priced 42 million shares at $28.75 a piece, a discount of 3% to the stock's close on Monday.

Even though BK passed the government's stress test with no trouble, the bank is nonetheless eager to raise funds and pay off its debt to the government. Other financial firms selling stock to repay TARP loans include Capital One Financial (NYSE: COF) and U.S. Bancorp (NYSE: USB).

However, investors seem none too pleased with BK's dilutive stock offering. The security shed 2.5% within the first 10 minutes of today's trading, extending BK's retreat from double-top resistance at the $33 level. The shares first shied away from this region in mid-April, and pulled back from the $33 neighborhood again last week.

Continue reading Put sellers target Bank of New York Mellon after $1 billion stock offering

Put sellers target Bank of New York Mellon after $1 billion stock offering originally appeared on BloggingStocks on Tue, 12 May 2009 10:10:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: The safest bank in the U.S. -- Wells Fargo

Chasing Value: The safest bank in the U.S. -- Wells Fargo originally appeared on BloggingStocks on Fri, 06 Mar 2009 16:20:00 EST. Please see our terms for use of feeds.

Thomson Financial expects Bank of New York Mellon (NYSE: BK) to earn $0.69 when it announces its fourth-quarter results on January 17th. That's up 19% from the same period in 2006 when it earned $0.58.

Bank of New York Mellon is a New York-based bank that operates through three segments: Institutional Services, Private Bank & BNY Asset Management, and Corporate & Other. In the last year, its revenues were $5 billion and its net income totaled $2 billion. Its stock has gained 13% in the last year, and it now trades at a P/E of 19.9.

Bank of New York Mellon consistently beats estimates. In the second quarter of 2007, it beat the estimate by 1.6%, and in the third quarter it beat by 9.8%. My hunch is that it will beat expectations.

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in Bank of New York Mellon securities.

Bank of New York Mellon earnings expected to rise 19% originally appeared on BloggingStocks on Sun, 13 Jan 2008 12:07:00 EST. Please see our terms for use of feeds.

With the price of Thanksgiving dinner up 11% this year over last, the Fed won't help consumers because it's confident that inflation -- as measured by Personal Consumption Expenditures (PCE) will range between 1% and 2%. Meanwhile, Washington is happy to create lucrative business deals for Wall Street -- in the form of arrangements to manage and keep records of its Structured Investment Vehicle (SIV) bailout.

What is the Fed smoking? I don't know any personal consumption expenditures that are growing at 1% to 2%. The price of oil has quadrupled since January 2001 to $99.29 a barrel, gasoline prices are up 40% since last year, airfares have more than doubled -- a flight from Boston to Florida that cost $300 last year is now $700 -- and the dollar has lost 61% of its value since January 2001. I guess the Fed has decided to define PCE in a way that conveniently confirms its pro-inflation interest rate policy.

Meanwhile, the Treasury Department has backed a Super-SIV plan to bail out banks, such as Citigroup Inc. (NYSE: C) which created the $320 billion SIVs industry and invested the proceeds of SIV-issued commercial paper in now-worthless mortgage backed securities (MBSs).

Continue reading Wall Street turkeys get pardon as Fed lets consumers pay for rampant inflation

Wall Street turkeys get pardon as Fed lets consumers pay for rampant inflation originally appeared on BloggingStocks on Wed, 21 Nov 2007 10:44:00 EST. Please see our terms for use of feeds.