Q: MFC: bought small position earlier this year at a good price (2500 shs) so up a fair bit. I also hold SLF (long time) which has been a stellar performer.
MFC announced a deal of some kind to-day which, quite frankly, I do not understand.
Why has this stock been such a poor performer vs SLF and is there any hope for it going forward?
Thank you ... J
MFC announced a deal of some kind to-day which, quite frankly, I do not understand.
Why has this stock been such a poor performer vs SLF and is there any hope for it going forward?
Thank you ... J
5i Research Answer:
We have comments posted this morning on MFC's transaction. MFC has acutally outperformed SLF this year a bit. There is hope certainly as it is very cheap, offers a good dividend (raised in February) and some growth is expected. It historically has reported weaker numbers than some peers, and has been seen as a more-agressive company. It had to cut its dividend in the financial crisis of 2008/09 while others did not. EPS growth has trailed peers, but we would still be comfortable owning it today for income and some growth.