McCain stock: Bank on Barclays

Filed under: International markets, Newsletters, Barclays plc ADS (BCS), Presidential elections, Stocks to Sell

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"McCain, a friend of Wall Street, would encourage investing through tax breaks, which ultimately means more profits for Barclays (NYSE: BCS), the British bank that has acquired Lehman Brothers' U.S. investment banking assets," notes Vivian Lewis in her Global Investing.

"Barclays is now investing hugely in the business of U.S. investing, having picked up the investment banking and asset management businesses of Lehman.

"Barclays got a bargain, cherry picking the bits of Lehman worth the most, including the HQ building in NY. It was required by British regulators to immediately issue a program for financing the acquisition to reassure markets worried about capital sufficiency.

"The new assets will beef up Barclays' U.S. presence (and its U.S. risk). The British bank already is a major player in the issuance of Exchange Traded Funds, a cheap and popular 21st century investment mode.

"Adding Lehman to the pot will further boost its prowess in this special part of fund management. Then too, the international connection will probably result in new business in managing money for other investors like high-net worth individuals.

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