Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

Coronation still well priced

Reply
Not applicable
Coronation posted a 20% growth in AUM in 2011. The power of operating leverage continues to benefit this company. I guess this is the story of asset managment companies. With a very clear investment philosophy and process, I expect Coronation to attract more funds going forward. It does not hurt that performance has been absolutely fantastic over the past few years. Is it still cheap? Absolutely. With a normalised PE of 11x and DY of 8%, I think the stock is a screaming buy. Hopefully, one can see a 40% upside over the next two years.
0 Kudos
4 REPLIES 4
partridge
Super Contributor
That would imply - a running market (?) , a significant marketshare gain in the retail market over similar houses( who are much bigger - also with good performance) , similar gains in the wholesale market - and that makes for a more modest growth scenario - ignoring all the usual culprits - Eurozone, Israel loses the plot and nukes Iran- and all that jazz
0 Kudos
SimonPB
Valued Contributor
they charge around 70 points and profit is around 40 points .. so take the new AUM and 40 points of that likely to go to their bottom line ..
0 Kudos
BC02
Super Contributor
Eventually the problems will get sorted, could be 5-10 years (who knows) but considering they're divi at 8% I think this could be a better hold than Satrix 40 (for long term 10+ years). Plus I've heard that the employees get paid mostly in shares, so they make sure the price goes up. :)
0 Kudos
ChrisPhil
Not applicable
SimonPB, could you please explain what's been said here?
0 Kudos