MFS - MFS Limited

[scsl]

MFS in a trading halt...

Still going great on the chart after breaking through $4.50, but might be due for another breather. Finding $5.80 a bit tough to really crack. Under $5.50 next support down at $4.50 really. Drawing way away from the 200 d ma....

Might all depend on what the news is.

MFS is using this trading halt to bookbuild the entitlement offer as well as an opportunity for management to run a roadshow.

 

[robert toms]

This one taking a big hit today.An article in the AFR confirmed what they wrote in the risks sections of their entitlement prospectus.
They are awaiting a court ruling from the Fair Trading department in QLD....relating to accusations of overcharging by S8 in their apartment letting operations.As MFS bought S8 they are now liable for any adverse findings,refunds or penalties which may result.
I have got no doubt that MFS can pay these but the adverse perceptions that may ensue are harder to quantify.
Questions such as..why buy S8 when these litigations regarding S8 were not cleared up or finalised ?
Did they pay too much for S8,as the S8 brandname may well be badly tarnished?
Are MFS too eager to expand,and as a result due diligence was not paid its dues ?
Interesting times...I sold some MFS down today and may sell more if the share price does not show signs of recovery.
It puts the share entitlement at $5.10 in jeopardy,it is underwritten ...so that is a positive.

 

[vishalt]

The only reason its getting hit hard is because its surged almost 70% year-to-date, even @ 5.74 (today's price) MFS is up 55%, and I think its a gem of a company.

I'm buying into it again as its bounced off support quite sharply, hopefully the sell-off is over and it can resume to be the next BNB/MBL.

 

[vishalt]

The only reason its getting hit hard is because its surged almost 70% year-to-date, even @ 5.74 (today's price) MFS is up 55%, and I think its a gem of a company.

I'm buying into it again as its bounced off support & created a higher high, but the volume isnt too convincing but I got a stop under support. Hopefully the sell-off is over and it can resume to be the next BNB/MBL.

 

[scsl]

Found this on egoli, dated 29 June 2007. Please note that 'MFSJZB' refers to one of ABN AMRO's warrants over MFS.

MFS Limited (MFSJZB) – Time to Top Up

ABN AMRO has been a supporter of the MFS story since late last year, with the stock rallying as high as $6.85. The stock has recently pulled back from this high to its medium term uptrend, with a bullish move yesterday the stock looks to have turned and should push up towards our 12 month price target of $7.92. Buy MFSJZB

ABN AMRO warrants first called MFS as a buy on the breakout of the $4.50 level at the top the trading range in December 2006. On this breakout the stock managed to rally to $5.80 before selling off back down towards the key $4.50 level. The stock found support around $4.60. If we run a trend line from the last turning point before the stock broke out of its trading range to this $4.60 level, it can be seen that more recently, MFS managed to bounce off this trend line support and looks set to move higher from its current levels.

MFS continues to make aggressive acquisitions which provide further potential upside going forward. Following the divestiture of its stake in HFA holdings and successful integration of S8, the company looks set to continue completing value accretive acquisitions and divestitures with a strong pipeline of deals. The company continues to roll out assets into specialist funds and looks set to report a strong full year result. ABN AMRO has a 12 month price target of $7.92, and the company is currently yielding close to 5%.

Also, for those interested in buying MFS, it doesn't hurt to know that MFS has the highest rating from analysts, with the highest possible recommendation of 5 (along with NWS, PEM, TSL). The average price target is $7.53. Not bad at all for a non-resource company! See Friday's FinRevew, page 37.

 

[Hephaestus]

Have we got any new news or new analysis on MFS? The stock has improved dramatically since it 5* rating by analysts. Last close of $5.92 is sure testing the $6 latest high. Further comments on a follow though? If so, Monday's expected negative start to the All ords may be a good time to stock up on this one (i'm still waiting for my recovery to $6.40!).

 

[Sean K]

Gee, this has fallen from grace. Looks like it's hitting support and what could have been a projection from the H&S. One to watch for a turn around perhaps.

(not holding)

 

[dubiousinfo]

Kennas,

Where was your chart on Monday when I needed it, bought back in at around $5.40.
Even tho this was a long term buy, an entry at $4.50 would have been nice.

But seriously, looks like a great call kennas.

 

[Dukey]

Having a look at MFS with a view to possible future buy - to diversify a bit.
Stella will now be retained for the moment and from my initial gander it may not be a bad thing. seems to be raking in some good $ in the UK.

This is gleaned from the recent guidance announcement from MFS re Stella...

Earnings guidance

- Stella group - FY08 ~220M$ FY09 ~280M$

MFS - FY08 (total including Stella)
EBITA min 490M
NPAT min 273M
EPS min 58cps
(estimates recurrent portion of EPS in FY08 at 45cps)
* note - this 08 EPS is well above current forecasts on comsec of 45.3 cps

Sounds like a goer to me - but wondering what current holders are thinking about MFS and the lack of a deal for Stella group?? Any comments there?
----------------

 

[robert toms]

I still hold a few,sold a few...
Regarding holding stella 100%...From what I have seen the plan for MFS has been to buy assets...enhance the value...sell at a tidy profit...and then look to repeat the operation...all the while having as a mainstay their funds managements business.
I think that holding Stella is a plus...if it is profitable and has potential why sell? I suppose only if you are sure that you can do better elsewhere.
What was said in the AFR today by MFS was that analysts now have a chance to value MFS properly.. and hopefully that will lead to more recommenations and buying pressure.
That is how it sounded to me.

 

[Dukey]

Thanks RT.
MFS is a bit difficult to put a value on with fingers in so many pies!!
I also noticed on comsec 'shareholders' page that this stock seems to be traded (played with??) a lot by some of the big boys - JP Morgan Chase; ING; BnB; UBS - all buying generally 5-6% and selling in the relative short term, often to buy again later. Not sure of the exact implications of this for MFS - but would like to look closer at the timing of these transactions!!!
will post on that if/when i get around to doing it.
good luck -E

 

[rgdk]

Does anyone have any inkling of rumours surrounding MFS?

The stock has been hammered of late, much more than any of its comparables in spite of no negative releases by the company, generally positive broker recommendations and nothing that I can see that would make it more risky than its peers (and defining who they are is actually a job in itself...)

I bought some on weakness today to add to my long term holding but the knives surely seem to be out for this one right now.

 

[Pager]

Does anyone have any inkling of rumours surrounding MFS?

The stock has been hammered of late, much more than any of its comparables in spite of no negative releases by the company, generally positive broker recommendations and nothing that I can see that would make it more risky than its peers (and defining who they are is actually a job in itself...)

I bought some on weakness today to add to my long term holding but the knives surely seem to be out for this one right now.

I noticed today particualy it got smashed, i dont own it but its on my watch list of possible buys, think like other similar finacial companys with complex debt structures its a bit of an unknown to value in the current debt crisis, AFG is a similar story, been smashed for no apparent reason rather than fact, AFG have even come out and said they have no debt problems or exposure to any that are dodgy but so far its done no good and the SP is well down.

 

[Dukey]

I noticed today particualy it got smashed, i dont own it but its on my watch list of possible buys, think like other similar finacial companys with complex debt structures its a bit of an unknown to value in the current debt crisis, AFG is a similar story, been smashed for no apparent reason rather than fact, AFG have even come out and said they have no debt problems or exposure to any that are dodgy but so far its done no good and the SP is well down.

Announcement yesterday from MFS...

"Proposal for an MFS entity to become the independent responsible entity only of approximately 35 unlisted closed end Centro property syndicates.... proposal does not relate to any real estate acquisitions"

Can anyone decipher this 'financial speak'?... what does it actually mean for MFS... and Centro for that matter.

Is it possible the hammering yesterday may have been unfounded panic - Re CNP. and MFS could bounce nicely today???
lets wait and see.... If it bounces... I'll miss out cause I got stopped out of my small parcel yesterday!!!
... Down a little more on open so far...

---------------
sorry - announcement was this morning - not yesterday.

 

[Hephaestus]

MFS sold its Sydney Park Hyatt Hotel in mid December for $201 million - made news on 21 December. This coincided with the beginnings to the second half of this correction. The Park Hyatt was a stable earner for this company...
just pondering.

 

[Pager]

Well its getting well and truly shafted today, down over 15%, obviously the market doesn't like the announcement re its intentions with Centro.

currently $3-30, low has been $3-21 but opened at $4-05

Anyone want to speculate why the hammering is so severe, could be picking up some of Centros better assets at knockdown prices as far as i can see

 

[Dukey]

Well its getting well and truly shafted today, down over 15%, obviously the market doesn't like the announcement re its intentions with Centro.

currently $3-30, low has been $3-21 but opened at $4-05

Anyone want to speculate why the hammering is so severe, could be picking up some of Centros assets at knockdown prices as far as i can see

Woah!! Damn glad I got stopped out now!! down over 20% this week!

The announcement seemed to specifically say that they were NOT acquiring any CNP assets - to my reading - but there must be something BIG going down!!

Was there any dealings/relationship between MFS and CNP before CNP crashed??

Re the hotel: I figured they wouldn't sell it unless it was good deal.... but now I'm thinking they may have needed the cash...???

 

[Pager]

I bought in at $3-25 but just sold half the parcel at $3-60.

If it starts going back down i will dump the rest at breakeven.

 

[robert toms]

I am not sure what the financial speak means... MFS wants to be the responsible management entity for funds means....but I will have a guess that it means that they have offered to manage the funds which were previously managed by Centro...the management fees may be at a discount to those usually charged.
MFS would only get a fee for service out of this deal ?
The very linking of the name MFS with Centro seems to have caused a panic or a rush to sell MFS.
The rush started yesterday and about ten million shares on MFS were traded...seems like some,perhaps, had early knowledge of today's announcement and got in yesterday.
In the absence of any bad news their previous announcements still hold ,I hope.
I am hanging on !

 

[rgdk]

Re the Centro announcement, I am glad that others also can't decipher the financial doublespeak. The way I read it is that there is an implied threat or negativity underlying the announcement due to its very cautious tone, although I have no idea what it is.

Quite possibly, this tone alone, given the leprosy with which Centro currently is afflicted, has lead to a "guilty by association" verdict on MFS. This kind of ridiculous panic dumping could be an opportunity for buying... but time will be my judge on that one.