Author Topic: BK - Bank of New York Mellon  (Read 11216 times)

sleepydragon

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Re: BK - Bank of New York Mellon
« Reply #10 on: April 11, 2018, 07:30:04 AM »
Anyone looking at this stock?
I have bought some during the last couple of weeks.
Their ROE has been steadily increasing in recent years, perhaps due to that they have a pretty big goodwill on their balance due to the previous merger, which masked their true roe (ROTE is more than 20%) and pe. These goodwill will eventually depreciate but earning power may get better as the new ceo invests in technology to improve productivity. Stock is not that cheap though, used to be trading at 10 pe a few years ago, now around 13/14ish.


vinod1

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Re: BK - Bank of New York Mellon
« Reply #11 on: April 13, 2018, 09:35:11 AM »
Anyone looking at this stock?
I have bought some during the last couple of weeks.
Their ROE has been steadily increasing in recent years, perhaps due to that they have a pretty big goodwill on their balance due to the previous merger, which masked their true roe (ROTE is more than 20%) and pe. These goodwill will eventually depreciate but earning power may get better as the new ceo invests in technology to improve productivity. Stock is not that cheap though, used to be trading at 10 pe a few years ago, now around 13/14ish.

The business finally got able management. He laid out his ideas for the company very well in the annual letter.

Vinod
The fundamental algorithm of life: repeat what works. –Charlie Munger

sleepydragon

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Re: BK - Bank of New York Mellon
« Reply #12 on: May 07, 2018, 06:57:12 PM »
In the annual meeting, Web talked about PCP’s goodwill expenses and also the electronic parts supplier’s “very complicated business”.
 I feel those characteristics apply to BK too.

alpha

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Re: BK - Bank of New York Mellon
« Reply #13 on: August 14, 2018, 07:52:23 PM »

I noticed BRK has increased it's position. Anyone else been buying recently?

boilermaker75

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Re: BK - Bank of New York Mellon
« Reply #14 on: August 15, 2018, 05:03:02 AM »

I noticed BRK has increased it's position. Anyone else been buying recently?

Yes

sleepydragon

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Re: BK - Bank of New York Mellon
« Reply #15 on: August 15, 2018, 06:00:38 AM »
I have some. It’s a very sticky business, being the “back office” of Wall Street. Difficult  and low margin work, but essential and very sticky. I also think a bank like GS shall buy them eventually. Very high ROTE. The negative is they seem are struggling growing revenues. But they buying back stocks to return unused capitals.

Schwab711

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Re: BK - Bank of New York Mellon
« Reply #16 on: August 15, 2018, 11:08:19 AM »
Yes I have been. I think BK today looks a lot better than historical numbers/growth would indicate. A big reason for the stalled revenue growth is how they classify one-time gains related to sales of assets/securities.

It looks like they are trading at roughly 10x normalized EBT and growing EBT at mid-single digits (when prior years' are normalized). I'll post more if I ever finish reviewing them. I think this is an easy place to park $4b-$5b for BRK. Long-run expected returns (ex-multiple expansion/contraction) are safely above 10% imo.

I should add, BK longs also get Charles Scharf, who's one of the best bank execs in the industry.

https://en.wikipedia.org/wiki/Charles_Scharf
« Last Edit: August 15, 2018, 11:09:54 AM by Schwab711 »

CorpRaider

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Re: BK - Bank of New York Mellon
« Reply #17 on: August 15, 2018, 12:41:00 PM »
Thanks for the posts/thoughts gents.

Spekulatius

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Re: BK - Bank of New York Mellon
« Reply #18 on: October 23, 2018, 04:16:27 AM »
Results in the last quarter were anemic and growth (except interest income) has all but stalled. It feels like a lot of headwinds in this business and no growth. It’s probably an Ok value here and they passed the stress test in a decent shape, unlike STT, but I don’t see large upside.
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NewValueinvestor

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Re: BK - Bank of New York Mellon
« Reply #19 on: March 25, 2020, 02:58:05 PM »
Hi anyone taking a look at BK?

I didn't want to start a new thread. I took a look at the business and it's down about 40-50%, it's a stable fee paying business and it's about 0.70 Book value and about 1.8 Tangible book. I found out the High Tangible book number is from the preferred shares they issued around the time of the financial crisis. At about 30$ it looks pretty good as 83% of their income is from fees and not interest income and they are less affected by the recent action of taking interest rates to 0.25%. Their NIM is 1.1% so that remaining 17% of the business will be hurt, but relatively to the other big american banks BNY mellon should come out of the situation better.

Any Thoughts?