RE:RE:RE:It's about to open up!!!is this Joe Canavan talking? lol....this business sure is "awesome"....all the debt, all the dilution potentially coming "to acquire more structually challenged buisnesses". Where is this money going to come from? more debt or equity? last I read there were 54 people at AHF, how many at FSC? high head count, costs to send people walking, no one buying mutual funds anymore. Who is going to pay for this?
Question: are you going to buy AHF/FSC funds to help support the revenue line? I doubt it...nobody is, why do you think the aum has dropped from $7 billion to $2 billion? at AHF, underperformance and lack of demand for mutual funds.
If I'm an investor or an advisor, the amount of paperwork coming my way due to fund mergers, proxies, notices...and this is just one merger....how many are they going to do? I'd rather just go to Fidelity and know that I won't have any headaches and it isnt a make work project for me (having to answer questions from my cleints that ahf creates for me). The advisory business is uber competitive as it is, advisors dont need more reasons for clients to leave, fund companies need to create reasons for clients to stay....
Will piling on weak and struggling businesses on to a weak and struggling business create a pot of gold?
Good luck, we aren't in the 90's anymore...