I've thought so for a while - the forward P/E estimates look very cheap. However, in this environment, one has to wonder whether the estimated profits for any of the asset managers are realistic. If Joe Soap starts withdrawing funds from his unit trust because he sees it losing so much value, there may be trouble in the sector.
Oi.. Undervalued/oversold/cheap..... maybe. But I've found that things can stay that way for a l.o..n.g time. DO wait for a clear indication of a turnaround. I thought HAR was looking quite expensive a few days ago... and it's just getting more expensive!
Unit trust investors typically do not keep track of the market and tend to move very slowly. Only after a few bad quarters (or maybe a bad year or two) will they think of withdrawing their funds. It is only 9 months since the market peaked, so most of them haven't even noticed the decline yet. The question is not really how these results look, but how they will look next year and the year after that.
Problably a good buy at these levels for the longer term. I wont however use geared instruments in this volatile market or throw the bank at it. Think the people in the know is pricing in some very negative forward sentiment/potential us risk from the results report. Must say getting my capital value in dividents over 2 years sounds very juicy. IMO
Shorted it ay R7.17 so lucky to all of you who bought it at R6.85. However there seems to be some kind of support at R6.80. I would be very sceptical if it went below that price. Funny thing about markets, it's like trying to lick your elbow, You are right there and yet miss it from a few cm's.
Why do so many people think that OML presents good value at hte moment? M&F posted a loss, Nedbank hasn't let the skeletons out of its CFD exposure closet yet, OML still has undisclosed exposure to the US (sub-prime, I think but don't follow this closely enough)