Having accepted a speaking engagement at a university school of business recently, I had to think about what introductory information I could impart to the students about investing that would be practical, immediately useful and establish a foundation for whatever direction their paths might lead. This was supposed to be the first in a series. However, since I pull no punches and can be a little edgy in my candor and presentation, who knew if I would be invited back?

My outline had five basic elements. The first thing I told them was to start now!

Continue reading Chasing Value: Class Is in Session -- Where to Start

Chasing Value: Class Is in Session -- Where to Start originally appeared on BloggingStocks on Mon, 13 Sep 2010 13:00:00 EST. Please see our terms for use of feeds.

Mark Mobius, executive chairman of Templeton Asset Management Ltd., believes that the global stock market will fall by up to 30%. The strong rebound following last year's calamity is likely to be impeded by profit-taking on the upswing. Basically, an increase of 70%, he says, will lead to a decrease of 20 to 30%.

The greatest risk in a recovering stock market comes from the increase in new stock and bond issuances, Mobius says. To participate in these new deals, investors would have to liquidate existing positions, which can put downward pressure on the market as a whole. Money doesn't come from nowhere, and new capital will come on the backs of the previous investments.

Continue reading Mobius says stocks will drop by a third

Mobius says stocks will drop by a third originally appeared on BloggingStocks on Mon, 10 Aug 2009 09:20:00 EST. Please see our terms for use of feeds.

Continue reading Sir John Templeton, best contrarian investor of the 20th Century, dies at 95

Sir John Templeton, best contrarian investor of the 20th Century, dies at 95 originally appeared on BloggingStocks on Tue, 08 Jul 2008 20:14:00 EST. Please see our terms for use of feeds.

Franklin Resources (NYSE: BEN), an asset management company that works under the name Franklin Templeton Investments, came out yesterday with strong numbers. They reported income of $518.3 million, or $2.12 per share diluted, on revenues of $1,685.6 million for the quarter ended December 31, 2007. In the quarter ended September 30, 2007, net income was $436.9 million, or $1.76 per share diluted, on revenues of $1,629.1 million. For the quarter ended December 31, 2006, net income was $426.8 million, or $1.67 per share diluted, on revenues of $1,427.8 million.

Operating income for the quarter ended December 31, 2007 was $635.7 million, as compared to $541.4 million for the prior quarter and $508.1 million for the quarter ended December 31, 2006.

In what many considered a very challenging environment for the asset management industry, they continue to grow their business. The stock has gotten pounded along with the rest of the market, and is over 30% off its' high.

This seems like a great long-term play. Their are many catalysts that should help drive earnings in the coming quarters.

1) A 33.3% increase in its quarterly dividend over the dividend paid the prior quarter and the same quarter last year. The company has increased its annual dividend rate every year since 1981.

2)10 million shares stock buyback

3)The Industrial and Commercial Bank of China, China's largest commercial bank, selected Franklin Templeton Investments to manage its newest Qualified Domestic Institutional Investor fund for domestic Chinese retail and institutional investors.

This may be the biggest driver going forward, as they will get a big chunk of Chinese retail and institutional money.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer has a position and is long BEN. He has no positions in any stock mentioned as of 1/25/08

Franklin Resources numbers are electric originally appeared on BloggingStocks on Fri, 25 Jan 2008 12:01:00 EST. Please see our terms for use of feeds.