On June 10th, I added to my existing Manulife Financial holdings at $14.16 (US). Manulife is a Canadian insurance company which operates in the US under the John Hancock brand. With this purchase, I was able to reduce my cost basis to $16.17 (US).
Although the price has dropped 24% over the past year, by many measures it’s currently undervalued. MFC was not on my radar – particularly since it’s an ancillary holding but decided to perform a little research since I had a little money to spend from the completion of the Baxalta/Shire merger.
What puzzled me most were the financial maneuverings. Like issuing a REIT in Singapore with US real estate. Or the US dollar denominated bonds issued in Taiwan. I don’t think mine were the only concerns based on how the stock has traded. My conclusion – and I may be wrong – is that MFC is liquidating US assets (via Singapore) due to valuation levels. The bond offering is probably attractive in Asia in a low or negative interest rate environment. then moving the proceeds to Canada where their dollar is beginning to strengthen is brilliant – providing it works. Which is why I bought.