Prudential Lacks Value Proposition

Prudential (PRU) announced by way of 8K and its compliance with Reg FD that there is new guidance. Well OK so we read the press release and see what Pru is thinking these days. We catch this assumption.

“The 2009 earnings per share expectation assumes a December 31, 2009 S&P 500 Index level of 900, an average S&P level of 850 for 2009...” We can debate the merits of the assumption but essentially they are telling us that they are an ETF with some business operational risks that may muck up the earnings picture.

Thanks for the tip. So where is the compelling reason to invest in this stock? Management is not offering a value proposition. The cost of management far exceeds fees incurred by ETF’s.