London based hedge Fund Man Group, has been on a recovery trail since the beginning of 2014, when 2CentView first tweeted it as a buy around 105.
Strong management – Manny Roman, Jonathan Sorrell (Son of WPP CEO Martin), and a good balance sheet – $800mm in Cash
It has a buy back program of $175mm and has been buying back stock for some time.
FV= 210 if you include around 10p of surplus cash ($300mm), Yield = 4%,
Trade: Buy here it at 177, target 205, stop 158, Yield = 4% – so you good carry if you have to wait.
Tweeted this name back in March as a recovery play with Yield.
FV=140 – if you include the dividends paid out, the stock has hit the take profit target trading at 135 for 33% return.
Now yielding around 4%, hold a core a position if you believe Manny Roman can continue to return Man group to the prominence it once had.
Man group stock has traded in the 80-100 range for some for nearly a year and recently popped from 84 to 106 – Here is why:
Manny Roman has taken over as CEO in March – ex Goldman and GLG he is the right person to return Man Group back to the 2007 high of 7 pounds
Recent results show good inflows of funds, following years of out flows…
Diversification away from the AHL fund – an algorthmic fund which has proven not to yield consistent results but for which MAN has been relying on heavily for its p/l
Recent dividend declaration, means the stock yielding 4.7% with 40% upside potential.
Buy here at 106, take profit 145. Stop 80 for just under 2:1 risk reward with 4.7% carry.