“why is the SP sliding? Other than the 6 Oct. FUM release I know of no news released to explain it”
Sometimes sentiment is the only explanation. The market has turned on MFG - presumably because they think their FUM may actually go backwards .....that assumption getting around the market can lead to irrational dumping on a grand scale ....and I think a 59% dive in the sp from its highs of last year qualifies as grand scale.
But do you know what ? Sometimes the market just plain gets it wrong. I know it’s not a directly comparable organisation but on the sentiment front it’s worth noting that CBA traded at $63 in September last year.
Last year the prevailing view was that CBA was cooked - that it was in terminal decline......a big, slow moving, behind the times, non innovative laggard ....won’t survive in a post COVID world they said where nimble BNPL companies will decimate their credit card business....then their mortgage business.
What a load of BS......but it sure drove the sentiment at the time. At $104 12 months later CBA looks as much of a powerhouse as it ever has.
At $33 MFG is as undervalued as CBA was at $63. I’m happy to take my 7% returns until the market gets a grip.
MFG Price at posting:
$33.00 Sentiment: Buy Disclosure: Held
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