Hamish Douglass’ fund manager MFG has pulled back 13% of late after being caught up in the Chinese governments strong arm regulatory tactics however its recovery back above $50 feels constructive although obviously a strong market backdrop helps – the current forecasted yield of 4.4% part franked is clearly attractive in today’s environment. We have 3 thoughts of how to invest in MFG today:
- Buy MFG around $50 with stops below $48.50.
- Alternatively take a small position around $50 hoping to average closer to $40 if we see some market / stock turmoil.
- Lastly leave alone at current levels but be ready to pounce if we do see a dip to around $40.
MM is bullish MFG with stops below $48.50
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