Maybe there's only a handful of us stockholders on this thread, but does anyone have an opinion as to where we are heading in the near term? As one of the suckers that bought at the IPO price, I am wondering how much longer until this stock crosses upward of $19 and finally starts making me some money. Hope its sometime in early 99.
Just a few comments: --from my own experience, you are better off forgetting your purchase price and evaluating FII's prospects from here. After all, you have plenty of opportunities to buy more at lower prices, so the fact that you bought at 19 is pretty irrelevant, don't you think? Besides, if you don't like the stock at these levels, why not sell? --judging from other asset manager valuations, 19 didn't look like a 'sucker' price either, and the price certainly hasn't gone down due to FII's bad performance. On the contrary, FII's past two quarters have been excellent considering the market environment we are in. --FII generates more than 100m in free cash flow (annualized for the past 2 quarters), so this is a story that -- over time -- just gets better and better. The way I view this stock is that every 3 months FII adds 25m more to our coffers. The big question now is how intelligent FII is going to be with that free cash flow. Time will tell, but I like everything I hear from this company, and I take it as a great sign that they haven't gone willy-nilly and purchased somebody at these elevated levels for asset managers. --And finally, FII's asset composition gives you some strong confidence that the free cash flow will take on an 'annuity-like' appearance, giving the company alot of flexibility in what they want to do.
I own a very small position, and would welcome much lower prices to make this a very large position.
But as a true investor, i.e., someone who invests in an oranization because of their prospects for continued success rather than a trader looking to turn a few points, I would only entertain selling if I believed the long term prospects for the company had changed. I dont believe this is the case with FII, as their performance over the last 2 quarters has been admirable. That being said, why hasnt the stock price reflected this performance looking forward? I would also like to add to my holdings, but as they say in poker "I'm all in". I am simply trying ro reconcile the stock price to performance.