Awonderful suggestion from a distinguished analyst

Discussion in 'Stocks' started by stock777, Oct 9, 2008.

  1. Was 80 at the time, went to 90 on the squeeze

    Now 32

    EXCERPTS FROM Barron’s Article on Yahoo:

    “A Gibraltar of Tough Times”

    “Prudential is pushing into new markets both at home and abroad, as other big global insurers stumble. Now its stocks look ready to roll.”

    “THIS LOOKS LIKE EXACTLY the time when you want to own a piece of the rock.”

    “While big international players like American International Group stumble from crisis to crisis and margin-crunching securitized lenders go quiet, stodgy Prudential Financial (ticker: PRU) is pushing ahead into new markets both at home and abroad and enjoying loan spreads it hasn't seen in years.”

    “..... Andrew Kligerman, an analyst for UBS Securities, has a share-price target of 108, or roughly 40% higher. He finds Pru's valuation compelling because it has both a "strong" return on equity and "manageable" credit losses. "We think Pru will attain the upper end of its 16% to 18% return on equity target by 2010, helped by excess capital deployment and faster organic growth," he says. Six years ago, ROE was just 6%”

    “..... Pru's shares seem like a bargain at 75. And they have upside of 40%, on strength of the company's big -- and growing -- return on equity and leading role in private-placement investing.”

  2. I bought when it first came out maybe around 30 averaged up at 75 and bought some more at 100. Still have it all. Oh well, I guess I'll start the same process all over again. :D