PTM - Platinum Asset Management

[Garpal Gumnut]

It appears that a certain well known newsletter recently came out confirming its favourable view of PTM.
It should be noted that this newsletter also favours current underperformers SIP, TIM and IFM. A contrarian view?

That newsletter needs some smarts, soon. SIP and PTM are both dropping like stones. TIM and IFM look more slowly terminal.

I think Wrong would be a more suitable description than contrarian.

gg

 

[poretti]

i used to pay a lot of attention to our notorious newsletter but disregard it these days, i think it had a good run while things were coasting along but IMHO its shortcomings have become evident lately (regardless of wider market negativity).

 

[Rainmaker2000]

The good thing for me is that PTM remains the company that was floated 1 year ago....I'd be happy if the price never appreciated as long as FUM increased.. since it will always payout round 90% of profits in dividends

The key for them though is obviously to lift FUM and sell themselves better....they will outperform their index again this year so investors would be better off with a PTM fund than most........but then would investors be better off in cash??? many certainly think so and no one likes losing cash

 

[moreld]

Look but Don't Touch

It’s time to start watching PTM as the federal budget just put a pin in asset managers by lowering the superannuation contribution limits. PTM has pulled back 10.8% to $4.05 in the last five days, but is still up 39% from the March 10 low of $2.91.
Look but don’t touch.

 

[So_Cynical]

It’s time to start watching PTM as the federal budget just put a pin in asset managers by lowering the superannuation contribution limits. PTM has pulled back 10.8% to $4.05 in the last five days, but is still up 39% from the March 10 low of $2.91.
Look but don’t touch.

Turns out it was time to buy....ah hindsight.

-----------------

PTM looks to be good buying at the moment, its certainly an interesting stock that seems to offer lots of regular in and out opportunity's, as well as regular dividends with a current yield of a little over 5% gross.

The SP is probably under a little pressure at the moment due to the continuing fun and games in America and the Euro zone...FUM bottomed in Feb 09 at 13.5B and seems to be slowly trending up and currently at 17.5B

Platinum seems to be a great Aussie success story...as long as Mr Neilson hangs around for another 5 or so years (he's 60) we could expect PTM to give great exposure to the international recovery with no dilutions due to reinvestment schemes, cap raisings etc...surely every diversified portfolio would benefit from a little PTM....all data chart below.
~

 

[So_Cynical]

I brought into PTM today at $4.73 pretty much a nine month low, factoring the dividend forward i reckon a gross yield of around 5.5% is quite probable...Platinum is a star fund manager in an industry dominated by mediocrity and ultra conservatism.

Australia's super pool is set to continue growing at a rapid pace and with investment choice slowly growing in acceptance with fund managers and financial literacy on the increase...star fund managers like Platinum can only
grow and gain greater acceptance.

 

[So_Cynical]

PTM released there Quarterly report a few weeks ago, 44 pages of smart big picture financial commentary and details on the activities of all the Platinum managed funds, finishing with some cartoons and African distractions.

http://www.platinum.com.au/images/ptqtr_0610.pdf

As for my PTM trade...im determined not to sell under $5.55 as i feel 17%+ profit is an acceptable exit all things considered.

 

[So_Cynical]

Platinum released there preliminary final report today.

http://www.platinum.com.au/images/ptm-app4e610.pdf

Highlights

• Total revenue up 13.15% (248 mill)
• Net profit after income tax up 8.49% (136 mill)
• Management fees up 16% (217 mill)
• Diluted earnings per share up 7.9% (21.62c to 23.33c)
• Final dividend up 16.6% (12c to 14c)
• Funds under management up 31.5% (18.4 bill)

ninemsn had bit of a write up about it.

http://news.ninemsn.com.au/article.aspx?id=7947906

My $4.73 entry of a few months ago (Green dot) is now starting to look like pretty good timing, with today's dividend increase im looking at a yield of a little over 6% gross going forward...not to shabby for a blue chip fund manager like platinum.
~

 

[skc]

Platinum released there preliminary final report today.

http://www.platinum.com.au/images/ptm-app4e610.pdf

Highlights

• Total revenue up 13.15% (248 mill)
• Net profit after income tax up 8.49% (136 mill)
• Management fees up 16% (217 mill)
• Diluted earnings per share up 7.9% (21.62c to 23.33c)
• Final dividend up 16.6% (12c to 14c)
• Funds under management up 31.5% (18.4 bill)

ninemsn had bit of a write up about it.

http://news.ninemsn.com.au/article.aspx?id=7947906

My $4.73 entry of a few months ago (Green dot) is now starting to look like pretty good timing, with today's dividend increase im looking at a yield of a little over 6% gross going forward...not to shabby for a blue chip fund manager like platinum.
~

Nice one SC. They are one of the few managers out there that has increased revenue, FUM and bottom line. Look at the insurers (QBE, IAG) and AMP who all got hammered on poor investment income figures. Whereas PTM must have a different business model where size (FUM) matters more than investment returns.

The one trouble is that revenue growth of 13.5% was supported by cost increase of 31.5%. Not so good on margin imo.

And the other trouble is the broader market looking for a retreat today. Let's hope that doesn't spoil an otherwise solid announcement.

 

[robusta]

Will be watching PTM with intererst. I have wanted to buy a piece of this company for a while now.

http://news.smh.com.au/breaking-new...l-expects-first-half-loss-20110112-19nz9.html

 

[oxygen]

Any current thoughts on this company? Would like to get into it or HHL in coming months as both should do very well as the recovery continues and FUM increase.

 

[So_Cynical]

Any current thoughts on this company? Would like to get into it or HHL in coming months as both should do very well as the recovery continues and FUM increase.

I own both, have done for awhile....PTM is the better value entry at the moment, was great earlier in the week at under $4.69 i had a buy order at $4.62 last week that didn't get filled a week can be a long time in the market.

HHL and PTM are the only 2 fund mangers worth owing in my humble opinion....i remember reading in a recent issue of the FR smart investor mag how PTM was the only fund manager among the majors that was significantly growing FUM, growing FUM faster than AMP and IFL etc.

 

[notabclearning]

Anyone had a look at HFA. IMO it has a great future ahead. Some analysts are saying it could reach $8

 

[oxygen]

I own both, have done for awhile....PTM is the better value entry at the moment, was great earlier in the week at under $4.69 i had a buy order at $4.62 last week that didn't get filled a week can be a long time in the market.

HHL and PTM are the only 2 fund mangers worth owing in my humble opinion....i remember reading in a recent issue of the FR smart investor mag how PTM was the only fund manager among the majors that was significantly growing FUM, growing FUM faster than AMP and IFL etc.

That PTM are growing FUM faster at the moment makes sense. HHL operate in the smaller cap end of the market and while long term performances of both managers funds is among the best, investors who are likely to look at funds are still probably hesitant about the mid and small cap sector. HHL's new Asian Trust should help inflows of funds pickup though.

The biggest concern i have for both stocks is that from next year when advisors stop recieving comissions for recommending funds, is this going to really cut into new money going into all funds? Boutique managers will likely be less affected by this as they likely appeal to more sophisticated investors than the major run of the mill funds.

 

[oxygen]

I'd also be interested to know why you believe PTM is better value. HHL is trading on a lower PE and higher yield than the other major diversified financials.

 

[So_Cynical]

I'd also be interested to know why you believe PTM is better value. HHL is trading on a lower PE and higher yield than the other major diversified financials.

Better value as in 'shares per dollar' I have little interest in "value" investing, i brought HHL & PTM at about the same time.

• Brought HHL 08/08/10 ~ $5.29 now $5.82
• Brought PTM 19/05/10 ~ $4.72 now $4.74

HHL has risen significantly since my buy in and PTM has not...therefore PTM is better value now because i would get more shares per dollar...my buy target for HHL is under $5.35

 

[robusta]

Better value as in 'shares per dollar' I have little interest in "value" investing, i brought HHL & PTM at about the same time.

• Brought HHL 08/08/10 ~ $5.29 now $5.82
• Brought PTM 19/05/10 ~ $4.72 now $4.74

HHL has risen significantly since my buy in and PTM has not...therefore PTM is better value now because i would get more shares per dollar...my buy target for HHL is under $5.35

Strange way to look at it By that logic a $0.01 stock would be better value because you would get a heap more shares / dollar.

I agree PTM is better value but mainly because of superior ROE, still not cheap enogh for me however.

 

[So_Cynical]

Strange way to look at it By that logic a $0.01 stock would be better value because you would get a heap more shares / dollar.

Except that we are not talking about any stock but rather the 2 stocks in question.

Any current thoughts on this company? Would like to get into it or HHL in coming months as both should do very well as the recovery continues and FUM increase.

have a look at the 1 year charts for both and you will find the bottom for PTM was around $4.60 and HHL about $5.20 ~ logically i want to pay the lowest price possible for my shares, which i did manage to do with both these stocks...so by any direct comparison of share price for these 2 stocks, PTM is the better value (cheaper) option because it hasn't risen substantially like HHL did/has.

 

[So_Cynical]

I took a bit of an average down into PTM today, when i saw the SP just falling away this morning i just had to have some more...i mean if i was trying to buy the other week at 4.62, today's sub 4.40 prices were simply a must have...SP now clearly below post GFC support with FUM still rising.

I imagine the price weakness came about via the release yesterday of the Platinum Trust Quarterly Report...clearly the funds haven't been doing to well over the last 6 months or so anyway onwards and upwards with the PTM funds taking the opportunity that was presented by the Tsunami market weakness to close out alot of their short positions....read all about it below.

http://www.platinum.com.au/images/ptqtr_0311.pdf
~

 

[VSntchr]

Depth looking horrible this morning, I wouldnt be suprised if PTM goes below 4.20 at some stage today.

Ive felt that this has been over valued for quite a while. It is starting to get to a more enticing price level though.

PTM does have quite a bit of key person risk IMO, with Kerr Nielson. With that being said, while he remains he provides the company with a good competitive advantage. He has been referred to as an Australian equivalent of Buffet..to the extend this is true I'm not sure, but he sure is good.