EMG – Is this a buy point? (13th July 2015)

Man Group (EMG) – Start of an Upmove?

We’ve been following Man Group for a while on the Inner Circle Webinars and you may recall that I felt it was overbought and maybe due a retracement (Mick’s Rubber Band)! Well, now may be a good time to re-visit EMG and take stock.

EMG Graph (152.4p at the close on Friday 10th July 2015)

The interesting point to note is the very low level of the RSI (Showing EMG as being very oversold), as illustrated in the following annotated graph…

EMG Key Metrics (10th July 2015)

Interesting Points From Key Metrics:

• Pre-Tax Profit higher in 2014 (Forecast £208m for 2015).
• ROCE (24.8%) in 2014 better than previous 3 years.
• At 3.67, the PSR is slightly on the high side.
• The Free Cash flow (FCF) was lower in 2014 (acquisitions).

Recent Results

Q1 Trading Statement

On May 8th 2015, Man Group released its Trading Statement for the First Quarter. The main summary is shown below…

Last Full Year Results (Y.E. 31st December 2014)

If you want to look at the full results, you’ll find them on the Man Group Website HERE.

A bundle of mixed signals here then, with the TA looking positive but the fundamentals (and newsflow) highlighting variable results – making it difficult to see consistent trends. Add the Greece/Euro troubles and China market worries into the mix and it complicates things even more IMO.

As usual, I’d be very interested to know what you think.

Mick (13th July 2015)