Per Theflyonthewall.com article:
Corvex Management said in an SEC filing this morning that it had taken a 7.04% stake in prison operator Corrections Corp. of America (CXW). Corvex also reported that it had held talks with Corrections Corp. about the possibility of the latter company converting to a REIT. Experts have said that Corrections Corp. could convert to a REIT without significantly disputing its operations, said Corvex Moreover, converting to a REIT would enhance the company's growth prospects and raise shareholder value, Corvex added. In mid-afternoon trading, Correction Corp gained $1.54, or 5.66%, to $28.75.
I agree, they'll never sell MFS. They can't get what they are asking for. No one wants to buy an under-performing scandal plagued mutual fund shop. No one wants to ask the million dollar question...If MFS invented the mutual fund in 1924...how come American Funds (1931) $200 billion and
TRowe Price (1937) $294 billion have more money undermanagement?
Look at their retail mutual fund sales which continously trend downward. Don't buy into the hype of their institutional sales where they get investment mandates because they price themselves below their competition so they can report winning mandates. Their share of the financial advisors wallet has slipped year over year.
Look at any of their domestic growth mutual funds like
MITTX, MIGFX, MCOFX and compare them to their industry peers...terrible.
The reason they are keeping MFS is because no one wants to buy it for the price they want to sell it. Scandals and under-performing growth mutual funds are not an attractive selling point. To take MFS off the market is in effect admitting defeat. It's like putting your house on the market and not getting the price you wanted so you take it off. Now when you go to re-sell it again, all the other buyers know you couldn't convert it before and you are now in a stategically weaker position trying to sell.
Investmentnews.com has an article about Sun Life
MFS at center of deal speculation.
By Katie O'Donnell
August 28, 2006
BOSTON - The buzz about the future of MFS Investment Management is intensifying, with speculation that the nation's 16th-largest mutual fund company could soon be in play.
A deal between MFS and a publicly traded fund company such as Denver-based Janus Capital Group Inc. makes sense, because it could allow Sun Life to retain an ownership stake in an asset management company, said Darlene DeRemer, a partner at Grail Partners LLC, a Boston-based advisory merchant bank specializing in the investment management industry.
Actually, the majority of personalization of social security assets will most likely be invested in Index funds for risk and expense issues. This will benefit firms who adhere to the Passive investment strategy and not an Active investment strategy like Eaton Vance. Hopefully that may change in the future.
I agree, volume is way off it's average. Maybe
it's got something to do with the energy concerns
about the higher costs of electricity and gas this
winter ?. People might be viewing this stock as an
alternative energy play.
I agree, when oil spiked I thought we would get
spike also. Needless to say we didn't, and that worries
me. With all those news stories on alternative energy
SPIR didn't do so well. Where is the Buying volume ?.