This top City analyst reviews the financial sector stocks making headlines today.
When QE was brought in I imagine the government didn't expect it to have this effect. It's a bit of a tricky one to get out of that. Last time was a credit crunch. Maybe it's a liquidity crunch in inflated assets this time. Now about these synthetic ETF's……………..
- Randall & Quilter (LSE:RQIH) chairman sells 400k more shares at £1.80.
Ashmore – Trading Statement
Share Price 518p
Mkt Cap £3.49 billion
Conflict Disclosure: No Holding
Ashmore Group (LSE:ASHM) is an emerging markets investment manager.
- Statement AUM up 7.6% over the quarter to $91.8 billion. Net inflows were 3.9% with market tailwinds of 3.7%. Net inflows across the board, except for equities that experienced a small net outflow.
- Estimates. Revenue in H1 was £152.1 million. FY to June 19 anticipates £311 million revenue which is a 4% increase on H1. They should beat that. For the year going forward, a 17% revenue increase is anticipated which compares to AUM 24% ahead of a year ago.
- Valuation PER 18.1X, Yield 3.5%. EV/AUM 3.9%
- Conclusion The high valuation is perhaps correctly anticipating upgrades after a strong year. This one doesn't go in straight lines. Time to take some off the table.
Miton Group – AUM Update
Share price 47p
Mkt Cap £81 million
Conflict Disclosure: I Hold
Miton Group (LSE:MGR) is a fund manager.
- Statement Net outflows of £87 million in Q2 is 1.9%, but market tailwinds increased AUM over the quarter to £4.7 billion. Half-year cash was £23 million.
- Estimates Forecasts are predicated on a 6.5% increase in net revenue to Dec 19 which, with AUM 4% ahead of June last year, looks reasonable.
- Valuation PER 10X Yield 4.9%. EV/AUM 1.3%
- Conclusion Cheapest quoted fund manager. But there are some modest outflows. The only thing for certain is the price is wrong. Either the outflows accelerate or the price corrects. Personally, I would go for the latter.
|DPS||dividend per share|