Down 60% . Ouch
This is bad. What’s the story on this. I am actually quite familar with MF, but can’t understand how it can be down so sharply. This can’t be good for the commodity exchanges if it is true…
Their first hit was when a wheat trader lost something like 142mill last month Dont know why today… i bet news will be out shortly
Apparently there are some class action lawsuits being launched - but I don’t know how that translates into $2bn fall in value of the business. I think it should be fairly clear that any rumour in the current environment is likely to cause a stampede… PS. This doesn’t seem to add up. MF Global is 18.6% owned by Man Financial (EMG.L). So this stake was worth $720m when MF Global was worth $3.6bn, so EMG has lost about $600m, or £300m (back of fag packet here). EMG was off >10% today - this is about a £9bn market cap company, so a £300m loss on equity investment has wiped about £900bn off the value of the company. Hmm.
The swear filter seems to have caught the colloquial term for a cigarette!
EMG the former parent is down 55 pence or 10%. I assume they still have an equity stake in MF? so they do Man holds 18 percent of MF Global after a July initial public offering of the Hamilton, Bermuda-based brokerage, the largest broker of exchange-traded futures and options.
chrismaths Wrote: ------------------------------------------------------- > PS. This doesn’t seem to add up. MF Global is > 18.6% owned by Man Financial (EMG.L). CFA_Halifax Wrote: ------------------------------------------------------- > EMG the former parent is down 55 pence or 10%. I > assume they still have an equity stake in MF? > so they do > > Man holds 18 percent of MF Global after a July > initial public offering of the Hamilton, > Bermuda-based brokerage, the largest broker of > exchange-traded futures and options. well spotted. 18.6% actually. chrismaths Wrote: ------------------------------------------------------- > So this stake was worth $720m when MF Global was worth > $3.6bn, so EMG has lost about $600m, or £300m > (back of fag packet here). > > EMG was off >10% today - this is about a £9bn > market cap company, so a £300m loss on equity > investment has wiped about £900bn off the value of > the company. Hmm. So it has to be more than just the equity stake in MF Global that has smacked Man Group. Or it’s just an overreaction. I may take a punt tomorrow on it being an overreaction. Especially since the AHL NAV is out tomorrow.
It’s true. As big a stake as EMG held in MF there is a reason they left the business, and for good reason (they did in effect what UBS should have done a long time ago in terms of separating wealth management and brokerage/investment banking etc) and I don’t think it will have a big effect on their long-term prospects. Just my 1/100 of a BSC share
I doubt this is an overreaction. Those in the know, probably know something that we don’t. How many times have you seen a sell-off like this, and it turns out only to be a false rumor?
well, EMG has opened up 26.5p (+5.45%). Looks like yesterday was an overreaction! No idea about MF Global, whether there are real problems or not (but I’ll punt that there are real probs), but I think it’s clear that EMG’s move was a fear-led overreation.
On second thoughts, no real problems. Turns out the rumour was that Joe Lewis was a client. MF Global have put out a statement saying that he was not. Leverage remains an issue though they have adequate current facilities. EMG up 37.5p (+7.7%)
Yeah, I heard something about the Joe Lewis thing yesterday and MF saying it was false. After Alan Schwartz a la BSC these guys are going to have a hard time convincing the market methinks. chris, do you cover EMG?
No. It was just an interest as a special sits play for our clients.
got ya. cool