Broadridge Financial Solutions, Inc. (NYSE:BR)

CAPS Rating: 4 out of 5

The Company is a provider of investor communication solutions, securities processing solutions, and clearing and outsourcing solutions to the financial services industry.


Player Avatar TMFDeej (99.22) Submitted: 5/17/2010 4:12:57 PM : Outperform Start Price: $19.14 BR Score: +42.98

This dividend-paying spin-off of ADP ('07) is going to save tons of money in the switch from paper to electronic distribution of shareholder materials is cheap considering its dominant position in the market.Buying shares of BR is a bet that the electronic delivery of shareholder communications does not enable competition to cheaply enter the market and steal share from the company. I'm guessing that Broadridge continues to dominate the sector.Furthermore, the company recently sold its low margin clearing business for $250 million dollars. This money can now be either invested in more profitable business endeavors or returned to shareholders in the form of a buyback.Add the proceeds from the sale of its clearing business to the fact that BR has paid down a huge slug of the debt that it was saddled with when it was spun off from ADP and the company should be in good shape financially going forward.Deej

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