Thanks Libero :-) I predict this time next year OML will be a 2.50p to 300p share :-) happy Days
17 Mar '14
OML owns 7% of boohoo! "Online fashion group boohoo.com (LON:BOO) strutted its stuff on AIM on Friday, becoming the latest retailer to make its shares available to the public. Those lucky enough to get a piece of the action were rewarded with a 60 per cent share price rise within minutes of trading. The shares went on offer at 50p, but soon raced up to 80p in a float which raised £300 million. The funds are earmarked for an accelerated expansion programme, as well as repaying convertible loan notes held back existing shareholders. Institutional backers, such as 7 per cent shareholders Odey Asset Management and Old Mutual, were quids in, not to mention co-founder and joint chief executive Mahmud Kamani, who made a cool £240 million from the listing."
3 Mar '14
Beaufort Securities - Buy
Old Mutual (LON:OML) On Friday, Old Mutual reported preliminary results for FY2013 ended 31st December 2013. Total revenue declined 1.4% to £19.8bn, while pre-tax profits improved 10.6% to £1.53bn owing to lower expenses. Adjusted operating profit rose 15% to £1.6bn and return on equity improved 60 basis points to 13.6% (constant currency basis). Adjusted operating earnings per share climbed 21% to 18.4p (constant currency). Funds under management (FUM) rose 19% to £294bn with positive market movements contributing £34.3bn. Old Mutual announced acquisition of Intrinsic Financial Services Limited in the UK, having a network of 3,000 advisers, to boost distribution for its Old Mutual Wealth business. The company plans to go public with its US Asset Management arm this year. In 2013, Old Mutual added 280,000 customers to the Mass Foundation segment and further 529,000 to the retail banking unit of majority owned bank, Nedbank. Old Mutual also progressed towards the integration of its recently purchased Provident Life Assurance, Ghana into the group. Full year dividend of 8.1p was 16% higher from last year. The stock closed up 5.9%. Our view: Barring the impact of a weakening rand, Old Mutual delivered a resilient full year performance on the strength of its emerging market business . The announced initial public offering (IPO) for Old Mutual’s asset management business in the US would bolster the unit’s expansion significantly. A majority stake in Nedbank has given Old Mutual an access to the Mozambique market through the former’s 36.4% stake in Banco Unico. However, a significant devaluation in the currency of South Africa, from where the company derives majority of its business, severely hit its financials. Moreover, the recent introduction of stringent regulatory norms for the UK insurance sector added to the woes. However, with upcoming synergy and cross-selling opportunities from a close integration of Old Mutual, Nedbank and Mutual & Federal, prospective gains from strategic acquisitions and a rapidly expanding customer base, Old Mutual is well poised for further growth. We upgrade the stock rating to a Buy.
3 Mar '14
A week for bargains.
Down 2%, along with the rest of the market, no doubt in a funk over Ukraine. Reality is that this is about different ethnic groups with different political perspectives (i.e ethnic Russians in Crimea not happy about goings on in Kiev), Russia protecting it's military assets in the region from a new Ukrainian govt whose intent it neither understands nor trusts and the Americans/Brits making noises of disgust, which politically it has to. But as John Simpson said on the BBC last night, this isn't world war 3. Infact will the west really want to endanger global economic recovery? And more to the point, is any of this going to hit the profits of, say, a house builder in the South of England ?. Bottom line, lots of bargains over the next few days, just wish I was a bit more liquid. As far as OML is concerned, down 4p after more good figures last week, should really be marching onwards over £2. Didn't know we were big in the Crimea (thats irony, btw) GLA.
1 Mar '14
Positive Points: The acquisition of Intrinsic, a network of 3,000 financial advisers, continued the company's drive to become a major retail investment management presence. Old Mutual's asset management offering was also bolstered by the recruitment of Richard Buxton from Schroders Plc in June 2013. The company announced that it intends to proceed with an Initial Public Offering of its minority interest in its US Asset Management business, or USAM, in 2014, subject to market conditions. Old Mutual has four strategic priorities, expanding in Africa, developing its business in the fast growing South African markets, building its Wealth business and growing its US Asset Management business. The board said it intends to adopt a progressive dividend policy.
1 Mar '14
Negative Points: Earnings generated by Old Mutual's South African operations are subject to exchange control regulations. The group sustains currency exposure and political risk, given its strong focus on emerging markets. South Africa's rand has depreciated 15% against the US dollar and almost 10% against the British pound this year. Management has previously announced it was working with its retail customers in South Africa to help them through a "challenging economic environment".........
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