Marsh & McLennan Companies, Inc. (NYSE:MMC)

manhattanbanker (< 20) Submitted: 7/30/2009 3:59:06 AM : Start Price: $18.77 MMC Score: +37.74

"Contingent Commissions" are coming back!
For perspective on how HUGE this is, before Eliot Spitzer obliterated Marsh Inc., MMC routinely traded between $40 - $50 and was widely held by institutions as a value play and for their steady dividends.

"Contingent Commisions" represented nearly $1 BILLION dollars of annual PROFIT for Marsh Inc.

If Marsh is allowed "Contingent Commissions" again, as other smaller firms are STILL allowed (this is totally unfair to Marsh), this could potentially once again add $1 BILLION dollars of annual PROFIT to Marsh's BOTTOM LINE!

Analysts will all have to raise both TOP and BOTTOM line earnings projections and their subsequent ratings on MMC will also be raised!

notes:

- expect a (typical) run-up in MMC's stock price prior to MMC's quarter-2 earnings release
- MMC HAS NOT participated AT ALL in this stock market rally
- China's growing business leadership will mean China's insurance industry will have to also grow from their current nascent stage which can only help MMC
- this new favorable "Contingent Commisions" news will help propel MMC higher for months until "Contingent Commisions" is either reinstated or eliminated entirely from the insurance industry - if its eliminated, then EVERY brokerage should be punished or Marsh would've been punished unfairly
- Marsh Inc. is a new LEANER company, with "Contingent Commisions" back, MMC's earnings will be greater than ever!
- will WSH make a leveraged buyout of MMC?
- will AON buyout MMC?
- will BRK buyout MMC?