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No. of Recommendations: 4
franklin resources
is a cash flow machine
lots of AUM
valuation is dirt cheap
half the cap is cash and investments
it seems ridiculous

but...stock is down 22%
ytd

reason....obvious...value is not the place to be

some of the top funds, ranked by Morn within the category itself, based on 1, 3 and 5 years
1 is top, 100 is worst


FCISX 80b 96-67-63
TEGBX 38b 100-90-64
TEGRX 14b 90-91-87
MDISX 21b 99-94-81
FRDPX 19b 71-58-80


26b in outflows 12m based on 12/2017
numbers like this - gonna accelerate

yikes...
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No. of Recommendations: 0
do they ever buyback? Where goeth the cash?
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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....)
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No. of Recommendations: 1
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.
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No. of Recommendations: 5
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
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No. of Recommendations: 0
thanks! i didn't see the special divi

yeah, to be clear, it has been a value trap
but then again, so was TROW before it vaulted 50%

but with bad performance and high fees, outflows could accelerate beyond their current pace
perhaps
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minor but

http://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/intl

but in my previous note I listed the biggest intl bond fund
which before had a sensational record before but in recent periods has experienced significant performance issues

course, on the rate concerns, maybe that is dissipating to a degree - now at 2.75% on the 10 year treasury
then again, if performance isn't good period, there is no hope for inflows
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No. of Recommendations: 1
p.s. apr

737.5 AUM vs. 744.9 or down 1%
most of the decline in the higher margin equity/balanced sides
prob modest outflows
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