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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (49833)	10/19/2012 11:43:41 PM
From: Spekulatius	1 Recommendation Read Replies (3) \| Respond to of 78462

I did add to MN today, which is trading a bit above the 2% AUM metric you stated. My notes state ~90M effective shares outstanding (yahoo states a 13.5M shares but those represent only a minority stake in the operating sub); revenue ~0.75% of AUM with a 45% operating margin. AUM has expanded rapidly but, has stalled this year, which I assume has been putting pressure on the stock. Since asset manager don't really need capital to expand their business (contrary to banks or insurance companies), the business can have fantastic economics. Compared to MN, WHG has 0.55% of AUM as revenue and a lower operating margin, but I do give you that they have been expanding their AUM YOY. The PE is about 15-17x, which is a little bit stretched imo, and not in the buy range for me. Might be a nice buyout candidate, if they are willing to sell out, but that is not something, I'd base my investment on. I regard MN as a nice dividend stock, that has a good chance of growing the business as well over time. files.shareholder.com