thanks - the share price has been erratic!MFI's price spiked up...

thanks - the share price has been erratic!

MFI's price spiked up around 15% at the time of the recent bonus issue, before losing all of this as well as a further 6%.

It's sitting at 74.5c right now. Liquidity is good for this small cap, no doubt being helped by the bonus issue.

The upside seems to be there in FY08 and beyond, but watching the share price slide to an even lower level in the meantime would be unsettling. It may be an opportunity to buy more, subject to some more short term risk while MFI convinces us it has locked in sustainable cash earnings growth. The growth is coming and that is good, and will be credible if the cash is seen hitting the books FY08 onwards.

MFI is an interesting little company in a good sector. It has a small market cap, but the funds management, investment and superannuation products if offers could be in the right place at the right time given the current wealth management boom - take the likes of PPT, AMP,
Platinum Capital. Barring any share market crashes or severe interest rate scares, etc before FY08! MFI is a player in increasingly popular reverse mortgages and some other good areas like infrastructure and property, with a number of funds already setup. It has the makings but its small market cap, share price volatility and lack of cash earnings can hopefully be addressed as very short term issues!

While this share is a bit of fun, the volatility is a worry and fingers will probably be burnt in the near term -

Looking back at the last few profit announcements, everyone seems to quickly push MFI's share price right up high to the point the ASX lodges a query, and then the price comes down just as spectacularly!