SEI Investments Company: Strong Fundamentally and Technically

Jan.19.07 | About: SEI Investments (SEIC)

SEI Investments Company (NASDAQ:SEIC) is a provider of asset management services and investment technology solutions. The Company's solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. It operates through five segments: Private Banking and Trust, Investment Advisors, Enterprises, Money Managers and Investments in New Businesses. As of December 31, 2005, through its subsidiaries and partnerships in which the Company has interest, it administered $312.1 billion in mutual fund and pooled assets, managed $148.5 billion in assets, and operated from more than 20 offices in over a dozen countries. SEI Investments also happens to be a part of the hottest sector over the past 30 days (Broker/Dealers).

SEI Investments is a company that has exhibited tremendous consistency over the past several years with growth in the 20 -30% just about every year. Growth has ramped up a bit in recent quarters with accelerating quarter over quarter sales growth of 11%, 49%, 50% and 54% over the past year. While margins have dipped in the past year, they remain very strong (net margin is 21%). Return on Equity comes in at a whopping 46%. No wonder management owns a large, nearly 40% stake in the company and institutions continue to initiate new positions.

This isn't just a company with outstanding fundamentals. With a recent break out above 60.60 from a beautiful looking base to a multi year high, SEIC looks poised for more provided the market doesn't go into a sustained correction mode. It should be noted that the stock may face some resistance around 63, which is near the all time high of December 2000. Also of importance is the fact that many break outs fail in a correcting market - be careful out there.


SelfInvestors Rating
With a total score of 55/60 (28/30 for fundamentals, 27/30 for technical), SEIC is the highest rated stock in the Breakout Watch screen of the Self Investors Breakout Tracker.

Full Disclosure: I currently don't hold a position in SEIC but am considering a position in the next several days.