This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Janus Shares Fall on Margin Worries

Janus (JNS - Get Report) fell 3% Thursday after UBS downgraded the stock.

The setback came a day after the Denver-based asset manager reported some modest good news, saying assets under management rose 5% last month.

But on Thursday, Janus shares slipped 56 cents to $16.21 after UBS analyst Glenn Schorr cut the stock to reduce from neutral, saying the stock price is "ahead of the fundamentals." Janus shares have risen some 23% off their Sept. 28 low.

Schorr says he expects margin pressure to continue to hamper Janus. He says the scheduled December outflow of $1.9 billion by ING, to be followed by another $2.5 billion outflow in May, will weigh on the shares. ING started withdrawing funds from Janus this year after worries about the company's poor performance.

Schorr notes that Janus has made some strides to stabilize itself since last year's mutual fund scandal, but he says the company still has its work cut out for it. Janus has reported improving sales this year, but Schorr points out they remain below 2003 levels.

Late Wednesday, Janus said assets under management rose to $137.4 billion in November from $131.3 billion at the end of October. Janus said total net outflows, not including money markets, were approximately $151 million in November. Including money markets, total net inflows in November were $183 million -- a marked improvement for a firm that has struggled over the past year to retain investors after playing a high-profile role in the mutual fund scandal.

The company attributed the growth to strong fund performances by its $9 billion (JAVLX) Janus Twenty and $2.3 billion (JSVAX) Janus Contrarian funds. Those funds are respectively up 17.6% and 19% this year. The firm's Intech unit, which uses a mathematical approach to investing in stocks, also showed strong results with inflows of $1.4 billion.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs