Valuations on assets like Stella are all fine when the share price is holding up, however mean very little with the SP where it is now. A couple of points:
* The very fact that SP is so low place a huuuuge brake on the ability to grow Stella. They can not issue MFS shares to make purchases, or really to raise capital for anything;
* Noone will buy Stella for $1.7 billion when they could pick up the whole company (including financial services) for even $1.5 billion assuming they paid triple the current SP. They could then offload the financial services for a bargain price of, say $200 million and have purchased Stella for 30% below analysts "value";
I'm NOT saying that long-term Stella isn't worth $1.7 billion, just that the current situation by default changes absolutely everything.
MJS
MFS
mfs limited
