SEI Investments (SEIC) 2012 Review

SEI Investments, SEIC, has grown its profits and dividends at a 10-18% pace over the past 10 years earning an 18-30% return on equity.

SEI Investment< SEIC,  offers comprehensive software products and computer processing services for trusts and investment programs and administrative and distribution services to high net worth markets, mutual funds and other pooled funds.

SEI has grown its profits and dividends at a 10-18% pace over the past 10 years earning an 18-30% return on equity. The 2008/2009 turmoil in the securities markets caused SEIC earnings problems; however, the company has resumed its above average growth as a result of:

(1) rising assets under management,

(2) continuation of its aggressive stock buy back program,

(3) improving cost controls,

(4) new product offerings.

Reliance Steel (RS) 2012 Review

Reliance Steel, RS,  provides value-added metals processing services and distributes more than 100,000 metal products. 

The company has grown profits and dividends at a 13-15% rate and earned a 7-19% return on equity over the last ten years. RS operations were under significant pressure from declining volume and increasing price competition in 2009. However, profits begun growing again as a result of:

(1) despite slow economic growth, it is witnessing improvement in its core customer base (aerospace and energy) resulting in both rising demand and prices,

(2) acquisitions (latest: McKey and National Specialty Alloys),

(3) an excellent cost control discipline.