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Profits Slip But Core Earnings Up – Manulife Financial Stock (MFC) for Aug 6 2015

Aug 6, 2015 | Manulife Stock (MFC), Trade Alerts and Ideas

I have done well this year with Manulife Financial Stock. The company today reported a drop in quarterly profits for the second quarter from 49 cents per shares for the same quarter last year to 29 cents this year. However the core earnings continued to rise with core earnings up to $902 million an increase of $201 million from the same quarter last year. Analysts had pegged core earnings at 44 cents per share which is exactly the results for the quarter. Profits are important but the core earnings tell investors whether the company is making progress and Manulife is making progress.

Credit Crisis Disaster

As most investors know by now, Manulife Financial ended up being a financial disaster in the credit crisis. What a lot of investors do not know is that the company has still not recovered from that debacle. The majority of the disaster came from their annuity program which guaranteed investors a 5% annual return no matter what happened financially in the market place. At the outset this seemed like a great strategy for the company but analysts even before the credit crisis had publicly mused about what could happen should the economy enter a period of historically low-interest rates. It turned out they were right and Manulife was hammered both in earnings, profits and stock price.

I have been trading in Manulife Stock since before the credit crisis and increased my capital for Manulife Stock trades following its collapse in the credit crisis. This is one of those companies that fit perfectly for my type of investing strategies.

Manulife 10 Year Dividend Chart

The 10 year chart below shows the collapse of the stock and the slow recovery. The stock has yet to recover the prior highs which were slightly above $42 in 2007. Now 8 year later the stock is trying to establish a higher valuation base in the low $20’s, from which to build from.

The company dividend in May 2009 was still at 26 cents and then was sliced in half as the company tried to shore up its balance sheet. The 13 cents dividend has stayed with the company since August 12 2009. The next dividend will be 17 cents as the company tries to put the past behind it.

MFC Stock 10 year chart

MFC Stock 10 year chart

This article is an assessment of Manulife Stock and looks at my upcoming trades in Manulife Stock. Manulife Financial Stock trades on both Toronto and New York. These trades are being done on the Toronto Stock Exchange in Canadian dollars. I do not trade Manulife Financial Stock in New York and as a result it is on the Canadian Members site.

Manulife Financial Stock (MFC) Update – Aug 6 2015

This is the latest trade update in MFC Stock. FullyInformed Canada Members can read the latest Manulife Financial Stock (MFC) trade ideas and update directly through this link or Canada Members can sign in to the full members site here. Non-members can join here.


Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.

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