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No. of Recommendations: 0
The dynamics of the fund business are so positive that over the long-term TROW stands to do tremendously. The need for people to save for their futures and the possible partial privatization of Social Security put this company in a great position.

Yes, mutual fund inflows are down due to the revolution in on-line trading. However, TROW still has a strong and stable 401[k] business with good inflows. Plus, not everyone will feel comfortable or want to invest on-line-- you know you can lose money trading on-line despite what the Discover Brokerage ads make you think...

At some point in the not-too-distant future, every dollar of revenue will be a dollar of profit. At that point, this stock (which has a market cap of just over $4 billion) will take off!

The real risk to the company's potential for incredible profitiblity is a price war in the area of management fees. As stock returns moderate in the future, this is a real danger that could hit this stock hard. Still, its potential is so great that you can't ignore this stock. See my comments (not all positive) in the TROW message folder...


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