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Online Share Trading

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Worst Performer in my portfolio

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Regular Contributor
With the recent Jan surge on the all share and all time new record highs reached. CML is my worst performer in my portfolio for this year thus far. with approximately 10% down at the start of the year and my biggest holding on my portfolio it is not looking good....
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16 REPLIES 16
Super Contributor
Swop it for Peregrin Holdings. Same line of business and they're are on a roll.
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Regular Contributor
Thanks, but I would rather wait it out. At least til Mid year results. I cant sell CML at the bottom when it is in oversold territory and buy PGR at the top. I try to use my head and not emotions. In addition trading costs are hectic to swop between the two. I also already own PGR. Do you perhaps know why CML is not going anywhere? I mean if you look at peregrine as well as PSG and even anchor. All these shares rocketed so I doubt it is the sector not performing.
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Regular Contributor
Although, the core business of PSG and CML is not exactly the same, but it was a nice comparison when they were both priced more or less the same with similar PE multiples some time back.
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Contributor
Why don't you take a look at Prescient
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Regular Contributor
Thanks Drew. LOL I own PCT also. I guess I love my asset managers.
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Regular Contributor
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Contributor
Good move, I think it still has legs as it is little known for now and has a far lower PE multiple than all the others. recent results were good and dividend paid.
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Super Contributor
Coro is fully priced - nay over priced you cannot expect the share price to keep on going up - well you can but you will be disappointed! I bought Prescient in the low 80's - why because it was cheap - their focus is fixed interest so no Nobel prize for working out the share price was going to go nowhere for a while - but they have a good model and diversifying income ( despite idiot Irish adventure ) - and part of that diversification with RECM brings the magic of AUM and that (AUM) is where the lads make the money....Just wish I had bought more. Asset managers returns are a function of the market - but if the model has other legs.....value will flow.
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Regular Contributor
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Regular Contributor
Drew, Bought PCT shortly after it penetrated the resistance level of 75c. after it bottomed out at 70c. Was quite interested in this company after the ceo opted for shares as a form of payment instead of a salary (If I remember correctly) My target price R1.40. Not too sure I fully understand their business with the whole PBT, asset management, trading platform and annuity income. Seems a little all over the place, but we will wait and see.
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Not applicable
to me, its a function of size. These guys grow in 2 ways - their performance fees on good years and by increasing their assets under management. The bigger the latter, the more they make on the former. Now CML has R600bn assets under management, vs Peregrine's R100bn. So for CML to grow 20% - they have to find another R20bn in client funds, while Peregrine has to find only R20bn - assuming of course they will both have the same performance fees, more or less.
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Super Contributor
Yes but they don't do like for like stuff! And the returns will reflect that....hence why prescient has been pedestrian. Life assurers are true asset gatherers and moreover they gather for longer than do the unit trust and platform mobs... albeit its not 35 years anymore( it never was ) ! So life assurers - plus the product fees they charge( 3 % plus on assets) and the relict portfolios where a whole bunch of people are lost forever to the world of acceptable investment returns.
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Super Contributor
As a general rule you can say the following. Asset gatherer's do well when equity markets do well - and worse when they don't. That said you have to qualify that as there are some with more diverse businesses - but they are all highwaymen.
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Super Contributor
Conventional wisdom holds: "The higher the market goes - the less likely it is to go higher - at least in the short-term." So general asset managers who constitute a proxy for the market, become less attractive; and the environment should become more suited to stock picking... Then there is CML's exposure to SA INC. shares and, even more importantly, CML's own SA INC. nature. Having said all that, the charts will tell their own story of reaching a first buying level at R100 and so on...
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Regular Contributor
It seems that it may be turning?
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Frequent Visitor
Why is this share performing so poorly
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