i will put my reputation on the line, page-10

I don't think MFS is "doomed" meaning it will go into administration in the next week or two, however the share market rout has created damage that may not be able to be repaired, and if it can will take a long time.

* It appears they will have to sell part of Stella for below what would be achieved in a more normal market;
* SMH today reported MFS has halted redemption of it Premium Income Fund for 6 months. This re-enforced the brand damage. I understand that even at the height of the "higher risk fund concerns" when the likes of Westpoint collapsed CIY did not have to do this. Hence their brand was protected.

This event makes it easier for someone like CIY to purchase the financials services arm. It also makes it harder for MFS to extract a good price. In short, more uncertainty.

I think the main short-term price driver on relisting will be the sale price of Stella. Longer term, IMO the companies growth prospects, apart from the portion of Stella they keep, have been potentially mortally wounded.

Note that my thoughts are NOT driven by the negative media coverage. My concern from earlier has been potential brand damage - however I used to think 12 to 18 months would fix this. Given the suspension of redemptions from this fund I am now not so sure.

MJS