The news has gone quiet around MFG of late considering how much real estate in the business pages Hamish Douglass had been occupying, now the dust appears to have settled it feels like an ideal time to re-evaluate the battered fund manager, especially with a large fully franked dividend due in around a months’ time:
Positives: the stocks valuation is attractive after steep declines, a large dividend is looming and we like their exposure to quality tech businesses into the current bond yield created weakness.
Negatives: Recent fund underperformance, declining FUM due to withdrawals and ructions at the top and in the Chairman / CIO’s personal life.
Obviously catching any “falling knife” comes with major risks but MM feels the risk / reward would look very appealing into another spike lower.
MM likes MFG below $19
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