Blackrock Inc.
provides investment management services (fixed income, equity and cash
management) to institutional clients and individual investors worldwide as well
as a family of open-end and closed-end mutual funds and offers risk management,
investment system outsourcing and financial advisory services. The company has grown its earnings per share
between 19-23% over the last five years and raised its dividend per share from
$.40 in 2003 to $7.72 in 2013. In
addition, BLK earned an 8-10%
return on equity. Growth should continue
as the company:
(1) introduces
new financial services, especially ETF’s,
(2) expands
globally,
(3) buys back
stock,
(4) makes
acquisitions.
Negatives:
(1) a large
portion of its fees are performance based,
(2) increasing
operating expenses,
(3) global
presence increases currency and regulatory risks.
Blackrock is
rated A by Value Line, has only 16% debt and its stock currently yields 2.6%.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2004
Ind Ave 2.1 9 29 NA
Debt/ EPS Down Net Value Line
Equity ROE Since 2004 Margin Rating
Ind Ave 33 19 NA 18 NA
Chart
Note:
BLK stock made good progress off its March 2009 low, quickly surpassing the
downtrend off it September 2008 high (straight red line) and the November 2008
trading high (green line). Long term it
is in an uptrend (blue lines).
Intermediate term it is in a trading range (purple line). The wiggly red line is the 50 day moving
average. The Aggressive Growth Portfolio
owns a 75% position in BLK. The upper
boundary of its Buy Value Range is $278.
The lower boundary of its Sell Half Range is $450.
7/14
No comments:
Post a Comment