Any thoughts on this share. I've held onto it since 2010 and has served me well. Is it time to let it go or what ios the general consensus. Good dividend is being paid but they have cautioned investors on future growth. They did that a while ago too but it has continued to soar.
From the horses mouth "While equity markets have continued to be strong, the absolute levels of return are not sustainable and we caution investors to re-set their expectations for the years ahead. Coronation is a cyclical business and we envisage a difficult investment environment with increased market volatility." Cautioning you to re-set your expectations lower, I think
Management have been making those cautious statements for years. I am a big fan of CML - and Peregrine. CML has around R500bn in assets under mgt - vs the JSE market cap of around R9 trillion. Not all their eggs are in the JSE basket - so still only around 3% of the total value on the JSE. AS one of the leading fund managers across the board - any international institution wanting to pump money into the African emerging market - will be looking to these guys. So performance fees might drop, given the current value of the market (can these guys keep outperforming at the rate they have?), but I would still expect their underlying asset base to keep growing, and for them to pick up more and more clients. So I would keep buying the dips with these guys.
The sheep has some points, the reality is that the usual asset classes will not deliver in the next few years like the last few. Accordingly their warnings are based on fact - and a dip for me would mean a much more reasonable PE...not looney tunes stuff like the present. But there are people out there who are prediciting another good year before a general price realignment emerges... they could be right but this is all beginning to look like the 30-1 horse...