IMO MFG is looking significantly undervalued ATM. $193 mil MC with a NTA backing of $120 mil (Dec 2010 figures) means we are getting extremely fast growthing funds management business for just over $70 mil. FUM at 30 June 2010 $1.147 mil 11 months later we are now at $2,770 mil yet the share price has only increased from $1.13 to S1.32. In recent months we have also seen a significant increase in new funds flow to the higher fee retail Magellan global fund which will be great for the bottom line. On top of this the Magellan global fund has recently been added to colonial first state first choice platforms which is one of the most widely used products in Australia. Combine this with an extremely active/respected Hamish Douglas regularly presenting to 100?s of financial planners, IMO there is plenty of growth yet to come.
MFG Price at posting:
$1.32 Sentiment: ST Buy Disclosure: Held
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