Paul Harris, CFA
Amvescap PLC
AVZ-T
BUY
Jan 24, 2005
A great company. Hit a lot of issues that a lot of mutual fund companies did with trading, etc. Also have a very large growth element in their funds and lost a lot of assets. Have improved their performance over the last several years. Being a UK company everything gets translated into Lbs. Good long term.
Trading at less than 2 X assets under management. Will not be paying a dividend until they work out their legal liabilities. It will be a bumpy ride until they get the settlement completed.
Badly hit by the mutual fund late trading scandal and had to spend a quarter of $1 billion in settlement. All the bad news is now reflected in the stock.