RE: RE: SLF beat by 7cMFC was steadily making an annual earnings of about $1.60 from Operations for the longest while
The problem was the other earnings..... the mark to market earnings
The Analysts were too focus on these other earnings and not the core earnings, like you pointed out.
So was our CEO.
Thats why he cut the dividend, raised capital and created a huge hedge cost of minimum
$400M annually going forward.
The previous management just left things alone and the mark to market earnings took care of itself
....... one Quarter losses written back on a future Quarter.
Remember when the markets went down in March 2009, MFC was still in no danger of breaching its
requirements of 150 MCCSR.
The Markets went right back up in 2009, and MFC made its highest EPS of $1.09, that was when this CEO
chopped the dividend..... the results will all these actions, he stifled MFC from recovering its losses plus
a $400M hedged cost going forward.
The ship was sailing in the right direction, until this Captain made a mess trying to turn it around.
However MFC is a solid company and its going to be around $30,00 very soon.