I suspect trading tomorrow will probably answer this conundrum, but I know there are some far wiser owls than me that contribute to this bb & I would be interested in their opinions.

My question is this: the chart below looks to me like a pullback of the uptrend (ie when it went north through 14.00) however I am unsure as it has now broken down through 14.00 whether this is trending up or down :-(

So what do you think - up or down, or should I just flip a coin :-)) ?

ACQUISITION OF FRM HOLDINGS LIMITED BY MAN GROUP

17 July, 2012 (London) - Further to the announcement dated 21 May 2012, Man Group plc, has today completed its acquisition of FRM Holdings Limited.

Tuesday will bring us interim figures from hedge fund manager Man Group , which has seen its shares severely punished over the past couple of years -- they're down 78% to today's 68.7p -- since its flagship AHL fund has failed to deliver.

Wait, am I really flagging this one up as an investment opportunity? Well, it's a big risk, but it surely will bottom out and head upwards again at some time -- with a market cap of £1.3bn, and with £38bn under management, it's not going to just disappear. And forecasts for 2013 are actually positive -- even if the currently mooted 20% dividend is perhaps not sustainable.

Interim Results

Key points

· Funds under management (FUM) at 30 June 2012 of $52.7 billion (31 December 2011:
$58.4 billion), reflecting sales of $7.2 billion, redemptions of $9.6 billion, investment movement of -$0.3 billion, FX translation effects of -$0.5 billion and other movements, principally guaranteed product degears, of -$2.5 billion

· Adjusted profit before tax (PBT) of $121 million, comprising adjusted net management fee PBT of $108 million and net performance fee PBT of $13 million

· Statutory loss before tax on continuing operations for the six months ended 30 June 2012 of $164 million, reflecting impairment of goodwill associated with GLG ($91 million) and Man Multi-Manager ($142 million)

· On track to deliver $95 million of operating cost savings announced in March 2012

· Further annual cost savings of $100 million over the next 18 months announced today

· Surplus regulatory capital of $704 million at 30 June 2012, net cash of $564 million and total liquidity resources of $3.0 billion

· Interim dividend of 9.5 cents per share; total dividend for the year expected to be 22 cents.

Great news. Should add some more.
We will also get dividend tomorrow.

I assume the market is now factoring in the future potential rather than dwelling on the past, as the figures aren't that great.
"Peter Clarke, CEO, said: "Against a turbulent market and economic background, Man's funds under management have declined in the period principally as a result of continued net outflows and the deleveraging of our guaranteed products. The result is a marked decline in underlying profitability which, after goodwill impairments, produced a statutory loss."

Barclays note:
"Man’s interim results show outflows returning and a highly cautious outlook statement. The headline of $100m of cost cuts is probably sufficient to cause a modest recovery to continue in the name but asset manager shares rarely perform for long on a cost cutting story alone without sales or performance improvement. It is also notable that management are admitting a $200m hit to excess capital under Basel III/CRD IV which will affect future dividend payment capabilities. As ever whether AHL falls further or continues to recover (up 3.4% in past 2 weeks) is crucial. The fund sits on average 11% below HWM.
$100m of cost cuts – We estimate this is equivalent to ~9% of the current run-rate expense base. There is a lack of detail on how the $100m is to be achieved but undoubtedly it must involve job reductions. The timeline of achievement over the next 18 months is a little disappointing. To put the size of the problem in context, if we take management fees at 1H 12 against the prior comparative, Man has lost annualised management fees equivalent to $424m.
Worse than expected outflows of $1.4bn in the quarter – AUM was down -11% qoq to $52.7bn but qtr to June net outflows were worse than we expected, at -$1.4bn vs our expected -$1.1bn. This is an acceleration from the -$1bn last quarter, and was driven by $4.1bn gross sales offset by $5.5bn redemptions. This was driven by -$1.1bn out of open-ended AHL. The Nomura Global Trend fund, which offers daily liquidity, was a significant driver of redemptions in both Q1 and Q2. Negative invt and FX mvmt were in line at -$2.3bn and -$0.8bn respectively. However, degearing effect was milder than expected at -$1.8bn vs our estimated -$2.4bn.
Mixed update on balance sheet – As management indicated excess cash and capital have both recovered. Excess cash now totals $564m and excess capital has risen $117m in the half to $704m. However, the group admits under Basel III and CRD IV there will probably be a hit to capital of ~$200m, reducing dividend paying capabilities.
Adjust PBT $121m, goodwill impairment causes $164m statutory loss – Impairment of goodwill of $233mn caused the Group to book a headline loss before tax of of $164m. Ex-ing out this, adjusted PBT is $121m. This gives an adjusted EPS of 4.8 cents, in line with our projected 4.9 cents, of which 4.3 cents is management fee only.
Highly cautious outlook statement – Outlook statement is cautious about prospects in the short-term, highlighting implementing significant change in a very challenging operating environment, due to uncertain markets. However, the CEO’s review highlights good strategic positioning and confidence that the changes announced today will help rebuild shareholder value.
Holding company set up to enhance flexibility to maximise dividends – The group still intends to pay 22c divi for FY12 and is setting up a new holding company to pay as high as possible a dividend for FY13. A new LSE-listed non-trading group holding company (HoldCo) will be created to access distributable reserves, to enable ongoing flexibility. Under the terms of the Scheme, shareholders will exchange their existing ordinary shares in Man Group plc for shares in New Holdco on a one-for-one basis. Approval will be sought from shareholders at a separate general meeting expected end 2012. Interim DPS is 9.5 cents in line with expectations.
As ever AHL performance remains the most crucial issue and market volatility does not appear helpful – Man share price performance ytd is -45%. But on the back of 2 weeks positive weekly AHL data (+3.4% for the weekly fund), the share has rallied 9%. It is trading at 11x 2012E PE. Whilst taking out $100m of costs is impressive, as ever of greater share price sensitivity will be whether AHL falls further or continues to recover (up 3.4% in past 2 weeks). The fund sits on average 11% below HWM.

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so under new rules stock lending profits will accrue to investors and not to the fund managers, what impact will this have on short selling?

Halifax, interesting point.

Which profit are you talking about? trading cost, interest, or profit made as a result of short selling?

I guess stock lending profits may be interest earned and commissions on lending out investments to contract for difference traders etc.
However any profits or losses on those shares while lent would accrue to the borrower and be lost or forgone by EMG -
Do you agree
I do not know where this originated, but I would have thought that investors rather than management would be taking this income anyway ???

looks reasonable to me.

I think it reduces income to the brokers and make shorting more costly and less favourable.

When is it going to be implemented?

I do not understand your thinking -
what has shorting and broker income to do with it

I thought brokers should share the profit (interest) from lending stocks with the shareholder. I was not focusing obviously!!! Ignore my messages above.

source is FT authority is ESMA (European Securities Markets Authority).

I think emg is doing rather well considering, 80p + at the mo and climbing. Not a total loss as some thought.,.

I do not think we are out of this ridiculous girating market yet, caused by the Euro
and those stupid EU ministers etc some years past.
Let us say thanks to Gordon Brown and our old mate Tony Blair for keeping reason
when all around in Brussels were pontificating, and blaming the British, and drawing their unwarranted extortionate salaries.
I say let UK get out of EU, and save ourselves a few billion of those good old £'s.
Was the original thinking to draw Europe closer together and stop wars,

Now EMG _ lets look back a little after the last storm,
although it may yet be too early, as the EU and euro may still fall to pieces -

NUMIS - A broker report best used as toilet paper
Mitzy - I think he said 50p looks right
Hlyeo98 - 40-50p sounds right to me
Have Mitzy and Hlyeo98 both got faulty magic crystal balls, probably
made in China and bought from a, dare I say it, a "pound" shop

The ones who seem to be more right to date are -
UBS, Merryl Linch, and HSBC, Riviera1069 and a few others - well done.

Perhaps those trying to make forecasts should be accountable for their actions ?

I do not think we are out of this ridiculous girating market yet, caused by the Euro
and those stupid EU ministers etc some years past.
Let us say thanks to Gordon Brown and our old mate Tony Blair for keeping reason
when all around in Brussels were pontificating, and blaming the British, and drawing their unwarranted extortionate salaries.
I say let UK get out of EU, and save ourselves a few billion of those good old £'s.
Was the original thinking to draw Europe closer together and stop wars,

Now EMG _ lets look back a little after the last storm,
although it may yet be too early, as the EU and euro may still fall to pieces -

NUMIS - A broker report best used as toilet paper
Mitzy - I think he said 50p looks right
Hlyeo98 - 40-50p sounds right to me
Have Mitzy and Hlyeo98 both got faulty magic crystal balls, probably
made in China and bought from a, dare I say it, a "pound" shop

The ones who seem to be more right to date are -
UBS, Merryl Linch, and HSBC, Riviera1069 and a few others - well done.

Perhaps those trying to make forecasts should be accountable for their actions ?

Ex divi this wed 15th Aug (6.12p)

Presumably the AHL fund is doing slightly better in a less volatile market? Hoping for a push upwards after the ex-divi date, though recent broker note gave a target of 85p, which doesn't give much scope.