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Thursday, August 5, 2010

interested in MF Global, again

A few factors are making me take interest in MF Global again.

1. A nice quarterly report. This report highlights the shift Corzine is making within the company.

2. FinReg was passed, and every large bank will be forced to slim down. Bank of America already announced a $500B asset sale program.

Here is where I think Corzine will really shine. With his contacts in the business and knowledge of what to do with these assets.

3. With an improving cash flow, their book value can be reflected within their stock price. A simple back of the hand calculation puts their book value around $11. (47.8B-46.2B/133.9M)

4. If today's move can be sustained, the technicals will look very bullish, albeit over extended. (But the fundies presented above merit a continued rally in the stock.)

Keep in mind, Corzine's pay out calls for MF stock to be over $9. Below the 9 level his cash out is out of the money.

fyi - i purchased this morning.

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