The valuation profession (and Duff & Phelps) gets a huge endorsement from Jim Cramer of Mad Money

BVWireIssue #86-3
November 11, 2009

Who says business valuation isn’t a good investment? Certainly not media-savvy Jim Cramer of Mad Money, who spent almost eight minutes Monday night (Nov. 9) convincing his huge CNBC audience that the “business valuation firm” Duff & Phelps is an amazing investment opportunity. Suddenly, the valuation profession is the darling of Wall Street (and as of this moment, D&P stock value has increased significantly since Monday). Cramer’s point, as you can see on the video, is a clear and simple explanation of the benefits of hiring a business appraiser.  

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To view the complete 8 minute video, click here.

He opens with the statement “what do you do if you’re a banker and no one on Wall Street trusts the way you do business or value your portfolio? How do you price what the banks own on their balance sheets? In an era of intense scrutiny and corporate swagger…is there a way to get off the market’s wall of shame?

It gets even better from there. His answer to any company holding troubled assets? “Duf—as in Duff & Phelps,” Cramer said—highlighting the firm’s investment ticker (DUF), as well as its financial advisory services that help hedge funds, PE funds and the like “protect their duffs.” The boutique financial and valuation firm has a “stellar reputation” and “fabulous imprimatur,” he adds, explaining its role as referee amidst corporate executives who want to value assets using mark-to-model—and auditors who instinctively return to mark-to-market. Therefore, he advises, investing in firms like Duff & Phelps “is a way to play the wave of M&A that I see coming.” DUF stock is cheap right now, trading at 15 times 2010 earnings but projecting a 20% – 25% growth rate, Cramer believes.

Mad Marketing. Duff & Phelps moved quickly to capitalize on the publicity, posting the eight-minute Mad Money clip to its marketing pages: To view, click here. To all our friends at Duff & Phelps, you deserve to be very proud! And, so does every one in the profession who strives to find “fair” value. This is a video you can show to your friends and family—and any one who doesn’t really understand what you do as a business appraiser.
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