Legg Mason, Inc. (NYSE:LM)

value

piotroski screen

http://blogs.barrons.com/stockstowatchtoday/2011/11/15/einhorn-likes-tech-financials-apple-now-biggest-holding/

see deranged monkey post #11083. c9 said so.

MORE than 50% discount on fair value based on Martin Whitman approach on how to value asset manager. 23% equity exposure. 'round 650 bln.$ aum. Enterprise value to aum @ 0.8%

@ 31/share, MC = 4.8B. P/E = 24.9 ; P/B = 0.87. P/E*P/B = 21.66 (VALUE!); Current = 2.50; LTD/EQ = 0.25. Dividend yield is too low @ 0.43% for IRA. At $25, it's a solid long term investment. New CEO replaced founder Chip Mason in 2008. Stock was trading at around $100 in 2006/2007. . . . Re-starting at $25 on 10-19-2010 (after closing a 17% gain).

Selling for less than book. Asset management is a great business. It pays a small dividend.

undervalued financial

just trying to learn

HUGE insider buying
http://www.washingtonpost.com/wp-dyn/content/article/2009/10/26/AR2009102603245.html

Alsin piece...has $75 target based on AUM calc, also insider buying noted

if using the classic 2% of assets under management to value the firm this firm is undervalued

Pounded by the economy - not bad management or investments

Betting that the financial sector is close to the bottom, and if it isn't the dividend keeps the Roth happy anyway.

LM has a very strong and respected brand, and many solid subsidiary companies. I believe they will see continued inflows of capital over the next few years.

Mmm...asset management...

Every time I look at my limited holdings of this stock my insides scream "buy more, buy more." At present LM is selling at 40% less than its book value. When the market starts to return, if it hasn't already, it will spark an accelerated groth in LM faster than the market itself.

The Fool helped me pick this one...speculative buy on my part, but believe that this one will end up a winner when the economy turns (not that all stocks won't be winners...just think this one will do better than average)

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