FIG has an average recomendation of BUY, a consensus price target of 10.5, a P/E of 7.7 (much lower than the Industry).
Can anybody give me a logical explanation of why, after beating estimates and on a bull market, is FIG not going up as it shouild be?
Is it there any bad news?? Is this any MM strategy? ... ??
Fortress needs a catalyst to get the stock price moving. The market is ignoring the embedded fees earned in its funds. Wes Edens remarked on the 4Q conference call that Fortress will "harvest" some investments made in the 2006-7 timeframe this year. Perhaps that will be the catalyst for FIG's stock price. Also, if Novogratz can come from behind, and recoup the losses in the Macro Fund and the other funds with YTD losses, that will make FIG look better.
How do you feel about their investment in Sbarro being wiped out as they file for bankruptcy for a second time? And the overhang of stricter oversight and regulations looming in the future? That may put a cap in the shares near-term as a number of divisions showed flat to declines.
The only negative I could find was in a Dow Jones article
( Einhorn Sends Athenahealth Stock ReelingBY Dow Jones & Company, Inc.
— 8:03 PM ET 05/05/2014
Five hours and a dozen presentations into the annual Sohn Investment Conference, a speaker finally drew a big market reaction, as hedge-fund manager David Einhorn unveiled a bet against athenahealth Inc.)
One manager whose fund has been hurt lately, Michael Novogratz, who co-manages a macro fund for Fortress Investment Group LLC (FIG), said he sees a bottom nearing in Brazil, especially if Brazil President Dilma Rousseff loses a re-election bid this fall. "It's so bad, it's good," he said.