Hi @Mostly_Dreaming
Do your own research before considering buying based on the below.
Magellan as a business is a value trap with declining earnings over the next few years. Magellan is a fund manager and relies on Funds Under Management (FUM) to generate earnings. They have lost almost $40 Billion in FUM over the last 5 months by now (waiting for the latest FUM release) and continue to lose more as each month goes by - due to fund performance and investors taking out Funds due to high cost. $40 Billion in FUM loss will cost Magellan $200M in annualised revenue (assuming the average fee charged is 0.5%).
Magellan will grow earnings when FUM starts to stabilise on a quarterly basis and it is clear what Magellan will be earning, they could easily lose another $20B in FUM over the next 6 months, costing another $100M in revenue. The bottom of FUM losses may still be another 12 months away (similar to Platinum (PTM) business).
While Magellan pay out 90% of EPS, the trend for EPS is down, see below table of different scenarios over five years based on FUM loss:
Best of Luck
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Last
$9.76 |
Change
0.030(0.31%) |
Mkt cap ! $1.764B |
Open | High | Low | Value | Volume |
$9.81 | $9.85 | $9.71 | $3.173M | 324.3K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 823 | $9.75 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$9.82 | 33318 | 5 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 823 | 9.750 |
2 | 4463 | 9.740 |
2 | 3176 | 9.730 |
1 | 1245 | 9.720 |
2 | 1426 | 9.710 |
Price($) | Vol. | No. |
---|---|---|
9.820 | 33318 | 5 |
9.830 | 1245 | 1 |
9.840 | 1245 | 1 |
9.850 | 10034 | 10 |
9.860 | 2111 | 2 |
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