franklin resourcesis a cash flow machinelots of AUMvaluation is dirt cheaphalf the cap is cash and investmentsit seems ridiculousbut...stock is down 22%ytdreason....obvious...value is not the place to besome of the top funds, ranked by Morn within the category itself, based on 1, 3 and 5 years1 is top, 100 is worstFCISX 80b 96-67-63TEGBX 38b 100-90-64TEGRX 14b 90-91-87MDISX 21b 99-94-81FRDPX 19b 71-58-8026b in outflows 12m based on 12/2017numbers like this - gonna accelerateyikes...
FCISX 80b 96-67-63TEGBX 38b 100-90-64TEGRX 14b 90-91-87MDISX 21b 99-94-81FRDPX 19b 71-58-80
do they ever buyback? Where goeth the cash?
it stays there for the most part - they typically do buybacks and dividends for the amount of cash flow but not much more - people have been asking for a while for something more aggressive (though to be fair, the price keeps dropping, so....)
Yeah, you look in this sector or in HBs and there are some nice single-digit fwd PEs for value guys to play around with.
Couple things: I think you'll get $3 of the YTD share-price losses back once the special div pays out - went ex-div last week. http://news.franklinresources.com/news-center/press-releases...But the big problem I see is the bond side. Fixed income is $200 billion or about 40% of assets per the quarterly report: http://s2.q4cdn.com/329803744/files/doc_financials/quarterly...Value of muni bond funds in particular is down due to tax reform, and general bond-market fear could drive further outflows. Add that to lousy environment for value on the stock side and it's easy to understand the short-term thinking pushing the shares down.good luck,dan
thanks! i didn't see the special diviyeah, to be clear, it has been a value trapbut then again, so was TROW before it vaulted 50%but with bad performance and high fees, outflows could accelerate beyond their current paceperhaps
minor buthttp://news.franklinresources.com/news-center/press-releases...fixed income is actually 281b with another chunk in the multi-asset/balanced area though as you can see a lot of that is global/intlbut in my previous note I listed the biggest intl bond fundwhich before had a sensational record before but in recent periods has experienced significant performance issuescourse, on the rate concerns, maybe that is dissipating to a degree - now at 2.75% on the 10 year treasurythen again, if performance isn't good period, there is no hope for inflows
p.s. apr737.5 AUM vs. 744.9 or down 1%most of the decline in the higher margin equity/balanced sidesprob modest outflows
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