Franklin
Resources is a financial services holding company which provides investment
management, trust and stock transfer services, distributes hundreds of mutual
funds worldwide and sells insurance products, tax shelter investments and
closed end funds to a wide variety of commercial, industrial, institutional and
governmental organizations. The company
has grown its dividend and profits at a 15-17% pace over the last 10 years
while earning a 15%+ return on equity. BEN experienced profit difficulties in 2009 but
earnings rebounded and should continue to increase as a result of;
(1) an ongoing aggressive cost cutting program,
(2) its breadth
and innovative product offerings provide a competitive advantage,
(3) strong
distribution platform,
(4) a stock
buyback program,
(5) expand its
strategic product offerings via acquisition [recent acquisitions---Pelagos
Capital Management and K2Advisors].
Negatives:
(1) its business
is subject to numerous overlapping and changing rules, regulations and legal
interpretations,
(2) exchange
rate risk,
(3) impact of
market fluctuations on fees,
(4) rising
operating expenses.
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:
BEN stock made good progress off
its March 2009 low, surpassing the downtrend off its October 2007 high (red
line) and the November 2008 trading high (green line). Long term, the stock is in an uptrend
(straight blue lines). Intermediate
term, BEN it is in an uptrend
(purple lines). The wiggly blue line is
on balance volume. The Aggressive Growth
Portfolio owns a 50% position in BEN, having Sold 25% of its position in late
2013. The upper boundary of its Buy
Value Range is $19. The lower boundary
of its Sell Half Range is $62.
7/14
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