Franklin continues to expand globally and diversify away from fickle retail investors. The latest acquisition is a Dubai money manager. These purchases will give investors more choices and decrease Franklin's vulnerability to investor trends.
With 54% of AUM in equity only funds, and 59% of assets outside the US, Franklin will benefit from the relatively weak dollar and declining U.S. economy. The international funds also carry higher management fees, which means more profits for Franklin.
This is not the most picture perfect example of a Jeanty Buy Pattern, but all the components are there:
1) The downward move shown in the red rectangle from $108.99 to $97.20
2) Retracements showing at first resistance at the 38% retracement level and then later more resistance at the 62% retracement level. Only one of those would have been enough to form evidence of component #2
3) A resumption of the original downward trend until 9/11/08
4) A bounce off the 38% extension level of $92.70 on 9/11/08. On that day, the low reached $92.16 and then we closed at $95.87 That bounce was a bit of a "hard" bounce as it took quite a bit of our potential gain.
Since all the components are present, we have a Buy signal with a target price computed as the bottom of the red rectangle, at $97.20. Assuming we entered the position at the closing price of 9/11/08 of $95.87 this gives us a potential gain of $1.33 or of 1.39%
So, what happened?
We hit our target price on 9/19/08. Some of you might look at the picture and say, "Wait a minute, looking at the chart, it looks like we hit the target on 9/12/08. However, closer observation shows that on 9/12/08, the high for BEN was $97.12, or 8 pennies below the target price. This would not have triggered our limit order and we would still have been in the stock. But, on 9/19/08 we had an incredible gap and opened at $106.26. This was well above our target price and we would have closed the position (through our limit order) for a gain of $10.39 or 10.84% in 9 days!
For more Jeanty pattern signals, look at some of the predictions I made for GOOG, EMR, COL, BDX