Broadridge Financial Solutions, Inc. (BR)

Strong competitive position in market poised to grow in the long term; attractively priced

Joel Greenblatt Pick

Magical Hat Equation

mfi pick 2

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Timestamp: 2009-07-22 02:54:10 UTC

DUNNO, BROKER RECOMMENDED

Stock is cyclical in nature, hovering between 15-25/share through all of its existence. Short-term risk to the downside but will achieve long-term success.

Solid company with good fundamentals, a great work ethic, and an GREAT record of insider investing.

BR pretty much has a monopoly in its niche market: processing the mailings: annual reports and proxy votes for all American corporations. When you receive a letter in the mail from ANY of the stocks you own (or make a purchase with your broker and get a confirmation letter in the mail) chances are that letter was printed and mailed by Broadridge. With expansion to electronic voting/mailing, BR will increase its gross margin in years to come, vastly increasing it's bottom line.

$15/share is a very safe place to get into this stock, and if it drops from its current price of ~$19, I will absolutely buy.

strong FCF with a monopoly in investor communications. Tied to "financials", so stock may get volatile, but the truth is, as long as investors need to receive Proxys, etc., BR will be fine.

EMA, 200 day Cross

This company has lost half it's value because it has "financial" in it's name. If you study the business, the company makes 70% of its profits from their investor communications business. Proxy, Statements, Confirms, etc - any required investor material will continue to get mailed or emailed. BR makes money either way and has a strangle-hold on the market. Their other business segments are securities processing and outsourcing solutions. While the outsourcing business is losing money, it is their biggest growth opportunity and will hopefully turn positive in 2009 as other firms look to outsource their back-office operations to cut costs. As far as their securities processing solution, the market believes that they have lost Bear Stearn and Lehman Brothers business. But this isn't true. In fact, this might present further growth opportunities with JP Morgan and Barclay's who now own the remaining assets and customers of those two bankrupt brokerage houses. Meanwhile BR hasn't lost any revenue from those two businesses as they continue to process on their systems. So BR is a market beater in my opinion.

expect future growth

good

Broadridge Financial Solutions, Inc. (Broadridge), is a provider of technology-based outsourcing solutions to the financial services industry. The Company’s integrated systems and services include investor communications solutions, securities processing solutions, and securities clearing and operations outsourcing solutions. Broadridge serves a diverse client base in the financial services industry, including retail and institutional brokerage firms, global banks, mutual funds, annuity companies, institutional investors, specialty trading firms, and clearing firms. It also provides services to corporate issuers. The Company’s systems enable its clients to process securities transactions in approximately 50 countries. Broadridge operates in three segments: Investor Communication Solutions, Securities Processing Solutions, and Clearing and Outsourcing Solutions

Even if the stockmarket is shaky, they still will use the services of this company to allow stockholders to access annual meeting materials/proxy voting.

financial services

Good spinoff from good company (ADP) will keep its niche and have room to grow it.

cold 5 star 8/6/07

Unique and almost exclusive platform. With so much stocks changing hands these days companies need to out source voting and proxy votes. So far Broadridge seems the only viable option since they allow members to use e-mail versus older snail mail techniques. I believe this portion of their business will grow to the upside in a big way.

Regards,

-Benjamin

prolly a bad choice. Has a lot of outperform picks on the fool, but the stock price has plummeted over the past year. Maybe that means it's about time it starts going up?