Karlostavitch ... it was me who mentioned the trust issue a couple of times.
This was based on the companies repeated statements that they had no debt issues, only $150 million to refinance or (more likely) repay, and then hitting the market for a third of their market capitalisation to "bring the companies to a more appropriate level of gearing" which infers that they are overgeared (have too much debt).
This raises questions of trust - and isn't healed overnight (ie. no matter how good an announcement IMO they make MFS will no be back to $5 for a very very long time, even $4 for that matter). I do agree with you, however, that the selling turned into paranoia and, assuming they do not have debt issues - which is hopefully clarified this morning - they are well undervalued.
MJS
MFS Price at posting:
0.0¢ Sentiment: None Disclosure: Held
