Paul Price

Two Asset Management Companies Still Have Room for a Rebound

AllianceBernstein (AB): Q3 EPS of $0.67 beats by $0.22. Revenue of $806M (-5%) vs. $737M. AUM down 16% Y/Y to $498B.

Shares +3.8% after hours

Two Asset Management Companies Still Have Room for a Rebound

BofA-Merrill raises Janus Capital, Calamos to buy

Sept 25 (Reuters) - Banc of America-Merrill Lynch upgraded Janus Capital Group Inc (JNS.N) and Calamos Asset Management Inc (CLMS.O) to “buy,” saying an improving dollar might draw more investors to U.S. equity next year, benefiting the asset managers.

Two Asset Management Companies Still Have Room for a Rebound

ALLIANCE BERNSTEIN HOLDINGS (NYSE:AB) Strong Uptrend $25.50/share

Smart Scan Chart Analysis confirms that a strong uptrend is in place and that the market remains positive longer term. Strong Uptrend with money management stops. A triangle indicates the presence of a very strong trend that is being driven by strong forces and insiders.

Based on a pre-defined weighted trend formula for chart analysis, AB scored +100 on a scale from -100 (strong downtrend) to +100 (strong uptrend):


+10 Last Hour Close Above 5 Hour Moving Average
+15 New 3 Day High on Thursday
+20 Last Price Above 20 Day Moving Average
+25 New 3 Week High, Week Ending September 12th
+30 New 3 Month High in September

+100 Total Score

Franklin Resources: A Bull Market Stock to Buy Now

BEN is a fine company but the shares made much better sense before they doubled.

Two Asset Management Companies Still Have Room for a Rebound

I'll give the most weight to their basic business value which is growing rapidly as asset prices inflate. The lawsuit is 'old news' as far as already being reflected in the unit price.

I can't imagine many investors caring about that when they choose which funds to buy or hold.

Ultimately AB will trade based on earnings and yield and, on that basis, I see at least a double over the next 3 - 5 years on top of all the distributions. A triple is not out of the question in my view.