Most of the broker research has been sell. These sort of companies are like a leveraged play, when the funds are rolling in they look great, once the fixed costs are covered pretty much every new dollar of revenue drops to the bottom line but, when the tide turns it unwinds fast.
They are copping it from every direction, fund performance dropping leading to less performance fees, now funds outflow and a distracted board that has been buying into other businesses like BarenJoey. And of course the founder seems to have lost his magic touch (remember Platinum).
The one potential silver lining is the pension product but that will take some time to ramp up and start getting market penetration but its sticky money.
MFG Price at posting:
$29.36 Sentiment: None Disclosure: Not Held
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