You look at the numbers and you see declining revenue and declining profit. And then increasing dividends. From looking at the past actions and these results I reckon…….
- high dividends are being used to distract shareholders from poor performance or poor outlook.
- acquisitions are not in themself a successful long term strategy. Look at AMP and AXA. $4.5 billion of value acquired by AMP. Meant to add scale but instead duplicated too many areas in terms of market share so most of the value was lost. Only North and the multimanager business has added value in the end. ifl has made similar mistakes. It paid $700m for an advice business 9 years ago - shadforth - I wonder what it worth now? They paid $1.4 billion for the mlc business. These two acquisitions add up to more than the current value of ifl today. The mlc acquisition let them brag about big fum numbers but as for long term profit???
IFL Price at posting:
$2.90 Sentiment: Hold Disclosure: Not Held
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