Buy - Price 27.23 on Oct. 20
by Janney Capital Markets

Despite a $2.54-per-share restructuring charge, book value per share actually increased this quarter, to 23.50/share, versus June's 22.68, and 22.03 at the end of the first quarter. We base our 33-a-share fair value on projected book value, and apply a 1.3 times multiple to this valuation, in line with current trading levels. Based on the current dividend reduction and assuming organic growth equal to our next 12 months' earnings-per-share estimates of $2.26, BK is on pace to increase book value per share by $1.90 over the next 12 months. We view a 1.2-times-to-1.5-times book-value multiple to be reasonable. Market cap: $32.8 billion.

I tell my clients if you’ve got to own financials only look at righteous names such as Bank of Hawaii (BOH), Westamerica (WABC), Cullen/Frost (CFR), Northern Trust (NTRS) or Bank of New York (BK).

undervalued

Meanwhile, UBS resumed coverage of several financial stocks, with analyst Glenn Schorr assigning a neutral rating to JPMorgan and Citigroup, as well as Bank of New York Mellon (BK), Greenhill (GHL), Morgan Stanley (MS), Northern Trust (NTRS) and State Street (STT). Schorr also resumed coverage of Goldman Sachs (GS) with a buy rating. Read more here.

Stock Wrap: The Real Story, June 9: Stocks in New York were slightly higher in the final hour of trading, with the Dow flirting with positive territory for the year, as oil climbed to $70 a barrel and investors mulled news that some banks are cleared to return taxpayer aid.
Click here to watch the video.

"If Wells Fargo went up 6, isn't it reasonable to presume that Bank of New York Mellon (BK), KeyCorp (KEY), Capital One (COF), BB&T (BBT) and no doubt all of the others, would do the same?" ("A Bevy of Bank Offerings," 5-12-09)

Shares of Bank of New York Mellon (BK), which earlier in the week slashed its dividend 63% in an effort to build capital, were falling. Read more here.

Trying to sort through Bank of New York's (BK) quarter, which doesn't seem so hot. ("'Not Bad' May Just Be Good Enough Here," 4-21-09)

Bank of New York Mellon (BK) was plummeting 14.6% after the bank reported a 57% drop in first-quarter profit and said it is slashing its dividend to 9 cents from 24 cents. For more, read TheStreet.com's article.

Barclays retains the revenue generated from the securities servicing for iShares, although State Street (STT) and Bank of New York Mellon (BK Quote) have been cited as potential bidders on this business.

do not like the food