The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
PMI's stock is being marked down out of all proportion to its credentials, prudence and competent management. Persistent negative news on inflation, which should now be peaking, has had a drag effect on the share as investors cover higher domestic costs. In contrast, its predictable growth, high dividend, and low valuation could all make it a solid consumer staples stock to hold during an economic downturn.
Early indications were for EPS of 7p+ a share but that could quickly increase as inflation begins to fall back due to the passing of the anniversary of Russia's war in Ukraine. As investor confidence returns, contrary to the current trend, Premier Miton should be a prime beneficiary.
Are there any profit forecasts for the current financial year. Interim's due 25th May. The only value with asset management is the profitability I would think, as there won't be any tangible assets (land, buildings etc).
10% Yield is very luring but over last three years the dividend seemed to be, close to all or more than EPS? Having said all that I am looking at this, but on the sidelines for now.
Sisyphus
Point taken but it is the only TR1 this month from what I can see and there has been reasonable turnover most days which makes me wonder if something is going on of which we are not yet aware.
Nevertheless the lower they go the closer they get to the bottom...
It's only RNS'd because Eastgate has crossed the 5% line by a marginal amount. When any insto or holder dips above or below certain %'s , in this case 5%, it triggers an auto RNS. These share adjustments are par for the course across the LSE listings. Nothing sinister or unusual.
In fact perusing the RNS it appears the seller is the Eastgate Court Trust, which is apparently the trust which controls the Premier Miton employee share benefit trust.
It could be that the employees know more than us or perhaps a large beneficiary is raising money for tax etc ?
Sisyphus any thoughts ?
13Martyn
Worryingly I just dribbled in a very few more at 92.3p....
What is going on, must be a big seller ?
Time to play 'Guess the Predator' at this level!
There's a lot of asset managers looking to consolidate premium quality teams and AuM out there......take your pick at this derisory sub £150m MCap.
Just topped up too at 93.83p in two deals.
Thought I was onto a winner initially buying at 99p, riding the rise above 130p+ and receiving the 6.3p dividend, but I agree Sisyphus, fund inflows will build going forward.
Half year results in May I think, so not too long for an update.
The US banking wobble certainly sent ripples to this side of the pond and added to investor uncertainties linked to the 10% inflation rate. This resulted in fund outflows across the board as investors chased higher returns hence the current depth plumbing here. Quality will prevail as it always does and as interest rates fall many will realise that self investment is not as easy as they thought. The rebalance will happen in the near future and inflows to PMI and other asset managers will rise accordingly. Premier Miton has an excellent track record as a prudent, trusted and competent team witha vast range of products not solely equities. Yes it is in the doldrums at present but the tide may turn very quickly indeed, and given the current MCap and limited shares when that happens the rise could indeed surprise. Any purchases at this level, given the quality here, should see a probable 100% gain in a 12-24 month time frame. A bid situation although speculative could most definitely be on the cards at this level.
A decent divi is also available here so well worth the patience.
I run the risk of being very wrong but I topped up again at under 94 today.
I can not see what is driving this down, other than more sellers than buyers of course...
The fun bit comes when the supremely confident hedge fund manager who may gaining by this actually stimulates the process of his demise. Sector consolidation certainly means that predatory eyes will also be watching PMI which is now trading at less than half it's sensible value of just over £2 a share. I'd delight in seeing PMI capitulate to a £1.80 surprise approach and the hedge to spontaneously combust.
"a hedge fund could get toasted" .... Their problem ... but I suspect that will simply have reduced profits rather than a toasting.
Looks that way but at this level and with sector consolidation active it's very risky, a hedge fund could get toasted......
80p is even more silly ..... some hedgie is taking this down .... let the share capitulate then buy more for the upside.
I just had to add a few more at 95.5p, this is getting silly...
Just a matter of time/patience. At this level the upside as either a stand alone or, as is looking increasingly likely, the target of a takeover bid, is significant. It could very easily double from this sub £1 level. Solid management, good team and prudent decision making look pretty good credentials for PMI to be a very juicy addition for an existing predatory asset manager.
Sisyphus
Agree with you
I topped up last week & added a little more today.
They do look attractive. Very attractive indeed sub £1...
Significant discount to peers leaves Premier highly vulnerable to predation at present for the reasons listed below plus it's seasoned and prudent management team. Sector consolidation is moving rapidly this year and PMI is a peach.
Calculating the logical share price for a listed UK asset manager with 158 million shares in issue and managing assets of £11 billion requires several assumptions, as the valuation of an asset management company depends on a variety of factors such as investment performance, fee structure, client retention, and market conditions. Therefore, any estimate should be taken as indicative and subject to significant uncertainty.
One approach to estimating the logical share price is to use a multiple of the company's assets under management (AUM) or its earnings. The most common multiples used in the asset management industry are price-to-earnings (P/E) and price-to-book (P/B) ratios.
Assuming the company has a P/E ratio of 15 and an AUM-to-revenue ratio of 1.5%, the calculation for the logical share price would be:
Calculate the total revenue generated by the AUM: AUM x AUM-to-revenue ratio = £11bn x 1.5% = £165m
Calculate the earnings based on the P/E ratio: Earnings = Total revenue / P/E ratio = £165m / 15 = £11m
Calculate the book value of the company based on the AUM: Book value = AUM x P/B ratio = £11bn x 1.5 = £165m
Calculate the logical share price based on the book value and earnings: Logical share price = (Book value + (Earnings x P/E ratio)) / Total number of shares = (£165m + (£11m x 15)) / 158m = £2.11
Therefore, based on these assumptions, the logical share price for a listed UK asset manager with 158 million shares in issue and managing assets of £11 billion would be approximately £2.11.
Sisyphus
Very true, I bet M&G would love Premier's performance record, not that they would be the acquirer, far more likely someone takes them, but your point is well made.
PMI is a very cheap stock, all we need is patience (& a bit of luck).
With AuM of £11bn and an MCap of just £156m this management team would fit perfectly into a bigger underperformed to boost prospects... Interesting as both a pure play on solid fundamentals and team with the added spice that it's a peach of an opportunity for a bigger player to acquire PMI and liven up it's quality. As a decent dividend payer, even a reduction would still place it in the top echelon of divi returns.
I was quite encouraged, better than I had feared tbh.
Best part about the rns to me was that 76% of their funds are in top half of their respective sectors.
I have dipped my toe in to average today as I'm guessing that the divi is looking just a little bit safer
Good to see AuM improved despite expected outflows due to financial sector blip. Premier is well positioned to benefit as sentiments shift and rebalance. Diverse exposure and a good team philosophy should see it be amongst the leaders going forward. Bit harsh to see it marked down aft market open but that should reverse as analysts look at improving sector prospects. Solid, but vulnerable to predation at this low price.
A bit of a holding action today. FUM up a bit but usual economic headwinds message.
POLR is on the up today .... just needs the RNS on AUMs