MFGO.AU - Magellan Fin Grp Ltd - Option Expiring 16-Apr-2027

[Drew95]

I am accumulating a few of these Magellan Options in the 70-80c price range. If Magellan bounces back these could be good. I like that they have 5 years to do so.

The options were offered on a 1 per 8 basis to existing shareholders in April 2022. "Eligible shareholders will receive one (1) Option for every eight (8) shares held at 5:00pm (AEST) on 7 April 2022 (“Record Date”). Each Option will provide shareholders with the right, but not the requirement, to purchase one Magellan share at an exercise price of $35.00 per Option, expiring on 16 April 2027."

Magellan Finance is down from a high of $75, in Feb 202 (just before Covid hit) to an all time low (bottom?) of $11.50 in July 2022. That 85% down!! Currently the head shares are trading around $14.50 (Approx. 40% of $35.00).

REUTERS: For the six months ended 31 December 2021, Magellan Financial Group Ltd revenues increased 21% to A$398.9M. Net income increased 24% to A$251.6M. Revenues reflect Funds Management segment increase of 13% to A$367.1M, Principal investments segment increase from A$7.2M to A$33.6M, Australia & New Zealand segment increase of 18% to A$230.3M, Northern America segment increase of 7% to A$47.5M.

I won't be accumulating too many before the six month results to 30 June 2022 come out.

[kiora]

I am accumulating a few of these Magellan Options in the 70-80c price range. If Magellan bounces back these could be good. I like that they have 5 years to do so.

The options were offered on a 1 per 8 basis to existing shareholders in April 2022. "Eligible shareholders will receive one (1) Option for every eight (8) shares held at 5:00pm (AEST) on 7 April 2022 (“Record Date”). Each Option will provide shareholders with the right, but not the requirement, to purchase one Magellan share at an exercise price of $35.00 per Option, expiring on 16 April 2027."

Magellan Finance is down from a high of $75, in Feb 202 (just before Covid hit) to an all time low (bottom?) of $11.50 in July 2022. That 85% down!! Currently the head shares are trading around $14.50 (Approx. 40% of $35.00).

REUTERS: For the six months ended 31 December 2021, Magellan Financial Group Ltd revenues increased 21% to A$398.9M. Net income increased 24% to A$251.6M. Revenues reflect Funds Management segment increase of 13% to A$367.1M, Principal investments segment increase from A$7.2M to A$33.6M, Australia & New Zealand segment increase of 18% to A$230.3M, Northern America segment increase of 7% to A$47.5M.

I won't be accumulating too many before the six month results to 30 June 2022 come out.


Interesting high risk/high reward?
MFG would need to achieve 20% compounding for the 5 years?
https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

Its a maybe. Only need to look at AMP to see what could happen.
Could sell earlier if don't look as though they are going to achieve that 20%

[Drew95]

Interesting high risk/high reward?
MFG would need to achieve 20% compounding for the 5 years?
https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

Its a maybe. Only need to look at AMP to see what could happen.
Could sell earlier if don't look as though they are going to achieve that 20%

Totally agree Kiora. Could just as (more?) easily go either way. I will only be accumulating a small 'watching holding' for now. So that I don't have much downside, but am ready to pounce if things start heading in the right direction.