Federated Investors, Inc. (FII)

People will spend less, invest and save more, which means money managers will benefit.

I used Bates' model to determine a fair value of 50.70. I AM a sunday fool.com player so it's probably wrong again.

idc

As the phonex rises from the ashes so does the Ford Co. They have at last put
a profit on the bottom line. Mostly from foreign sales. What greater brand to have overseas its been long time coming.

Federated offers a conservative line of products which investors flock to during tumultuous market times and periods of uncertainty

This CAPS account is tracking the 200 highest yielding S&P stocks.

Liquidity crunch could cause some problems for this company.

money market management is still a growth industry

more consolidation in financials to come.

This is a "solid" stock. Everyone knows that. But what the market underestimates is the extent to which FII will benefit once babyboomers start retiring and need to generate more income from their portfolios (FII's specialty).

Huge money market assets in low fee structure funds offer solid revenue upside as they migrate into higher fee structure equity funds. The trend has started last quarter and is likely to rise throughout the pre election year market strength. The stock is likely to move to its Spring 06 high of $40.

Federated Investors delivers world-class investment solutions and expertise to more than 5,400 clients with a broad array of investment needs. The company has honed its disciplined investment process over a half-century to deliver style-consistent investment products, including 148 domestic and international equity, fixed-income and money market mutual funds, as well as a variety of separately managed accounts.

Federated Investors strategy to increase assets under management (AUM) has been to penetrate broker markets, banking organization and institutional clients. Moreover it is also trying to diversify its concentration from fixed income investments to more of equity based funds and is also supported by strong fee income. The recent fiscal year 2006 has been good with net revenues increasing 9% to $308 million and the total AUM increasing 11% to $237 billion. Market appreciation boosted the equity funds under management to a record $40.9 billion partially offset by some outflows. Acquisition of MDT Advisors would increase equities AUM by around $2 billion with benefits arising from proven investment acumen of the MDT Advisors’ combined with Federated Investors distribution capabilities.

Pausing of interest rate hikes by the Federal Reserve with expectations of reducing the same makes money market fund management a bright spot. This would help in considerable asset inflows from the institutional business clients with retail money market inflows are already recovering. The company is generating shareholder value using the cash flows to fund acquisition, pay dividends and has an aggressive schedule ahead for share buyback. The investment advisory and distribution has had total reorganization under the new management, already showing positive signs of improvement. The financial position of the company looks good with excellent margins and low debt making it a promising buy.

FII makes money by making money. They are especially big in fixed income products, which should do well with higher interest rates, and older income-seeking clients.

Lots of growth, nice dividend, boring model. Love it!

What better way to Invest than to Invest in Investors ... unless Fool goes public, tis one's the next best thing.

I'm in!

Stock is trading at a discount to peers; higher interest rates will support sales of company's money market funds

Ferderated Inv. - value

got past some SEC issues, positioned to take advantage of rising interest rates, current price seems to discount even modest growth