Based on the latest financial metrics, you are right, Chella, it does look slightly undervalued if we take away the one off costs/expenses/write-downs.
My concerns however (as aruc6393 had alluded to) are that 117BN is a pretty significant amount of FUM. I wonder what's the growth trajectory moving forward from the funds management business. It appears to me that the future growth prospects may be largely dependent on the other investments.
Right now, no one really knows how Barrenjoey will fare (although Hamish seems fairly confident it's a great business). 250 employees is by no means a small business, so it should be showing some positive revenue fairly soon (after which, I expect MFG price to respond in kind).
i topped up more after the steep decline in price because I'm confident in Hamish and his team. If nothing, at least the funds management business appears stable and should generate reliable 4-5% income (depending on your buy-in price), although I'm still on the fence re the DRP.
To me, MFG is the type of stock with low downside but potentially huge upside.
Happy to hear further thoughts even if they totally trash my opinion.
GLTAH
MFG Price at posting:
$43.97 Sentiment: Buy Disclosure: Held
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