Thanks
FSZ is down 26% this year, and up 3.75% in the past two years. Over the past decade, shares are down 47%. Even with the dividend cut, yield is 6.51%. Shares remain very cheap at 7X earnings. But there is still lots of risk here. There has been a big management change, and assets under management and revenue continue to decline, even with strong capital markets. EPS is expected to rise nicely this year, but it often misses estimates. There is just not a lot of growth here and the industry remains highly competitive. The payout ratio has been 101% so with the cut and assuming some growth it will be less than 50% going foward. A strong market will help FSZ but of course that's not guaranteed. A takeover/privatization is also possible, but has been for at least five years. Overall, we would still not give it high marks overall, and while income is good, we think there are better stocks to own within the financial sector.