MF Global Ltd (MF) released its Fiscal 2009 Q1 results yesterday morning and Mr Market pushed the stock up a quick buck or so, to within a penny of $7.50 shortly after the conference call began; it closed at $7.05, tacking on a nice round 10 per cent on a day when the financials took yet another pounding. As with so many in these delevering daze, the MarketWatch headline, “MF Global’s profit falls sharply, but beats forecast” summarized the stardust that now comes with stumbling over the low bar of diminished expectations.
Call highlights? Not so much, apart from the phrases “We know the answer to that but we’re not providing guidance” or “We’re not giving detail on that,” and variants thereof regularly issuing from Chief Executive Kevin Davis and Chief Financial Officer Randy MacDonald. Contrasting, it must be said, with a couple of “We’re trying to give you more transparency on” this and that.
In fact, a lot of the guidance was going the other way, as the dynamic duo urged Wall Street’s Finest (© Jeff Matthews) to abandon their obsession with customer balances, stressing that the line is subject to a variety of influences. Not least, of course, being perceptions of the financial stability of the brokerage (Bear Stearns q.v.).
Several things:
- Maybe it was just me, but Kev didn’t sound quite as chirpy as usual. Sort of like a guy who knows, Yahoo!-style miscounts aside, just how many shareholders withheld their votes for him at last week’s annual meeting (a minor detail, but entertaining, detail for which we must await the impending SEC 10Q filing). Or maybe one working for a board that is taking another look at that tub-of-lard severance package.
- And speaking of the election, NakedShorts formally withdraws his ‘vote withheld’ on former HSBC USA serang Martin Glynn, elected to the board in Jun. 2008. Glynn has since formally agreed to take his entire $250,000 fee in stock. Bob “I’ll take 75 per cent of mine in cash, thank you” Sloan, please take note. Speaking of entirely transparent guidance.
- And further speaking of the annual meeting, NakedShorts encountered difficulties in signing up for the (not that stimulating) webcast. Crains New York apparently mastered the technical complexities, or, possibly, went with the steam dial-in version.
- That’s it. For now.
MF Global Reports Fiscal 2009 First Quarter Results
Aug. 7 2008
Q1 2009 MF Global Earnings Conference Call
Aug. 7 2008
(NB: At pixel time, the link to the archived call was not working; your mileage may vary.)
MF Global's profit falls sharply, but beats forecasts
by John Spence
MarketWatch Aug. 7 2008
Disclosure: NakedShorts’ Falling Anvil Portfolio remains long MF.
