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$26.90 -2.88 (-9.67%)
10/6/2008 4:01 PM

The Bank of New York Mellon Corp (BK)

CAPS Rating:
***

The Company provides services that enable institutions & individuals to move and manage their financial assets. It has a tradition of collaborating with clients to deliver solutions through its securities servicing, treasury management & private banking.

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Recs

1

Avatar JDSancho (96.07) Submitted: 6/20/08 12:37 AM : Underperform Start Price: $42.48 BK Score: 12.20

I initially picked BK to underperform based on the fact that it's a bank. Shoot first, ask questions later type call.

Well, I've done some quick DD on BK, and it may not be so bad there. I'll say BK is in a better position than 3/4 of its industry peers. BK has declined only 7% YTD, so it is not facing a dividend cut possiblity like almost everyone else (current yield is a respectable 2.4%). I think it will outperform those losers, but it may not yet be time for serious investment consideration.

I'll maintain my underperform call for now, just because it's a bank, and the rest of the sector should weight on its share price. As soon as the sector is ready for a turn around, BK will outperform the rest of the sector, and maybe the market in general.

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