"Emerging markets asset manager LSE:ASHM:Ashmore is grabbing headlines Thursday. Profit almost doubled in the final six months of 2016, smashing market forecasts. Its share price is up over 6% to its best in three months, but should investors keep ..."
The reason for the high yield is that Ashmore is losing business as some companies are taking their business 'in house', In revenue terms 2016 is likely to be 20% down on 2015. The market is obviously worried that the dividend will not be maintained.
This is another share that I think has become undervalued during the current market gyrations and sentiment. A buy limit order triggered this morning - I hope this is buying on a dip, not catching a falling knife. But I invest with a long time horizon so aim to follow the adage of 'time, not timing'
"In what will be quite a quiet week for company news compared to recent weeks, iron-ore producer Ferrexpo, high-street retailer Marks and Spencer and emerging market asset management firm Ashmore Group will report.Monday 7 AprilTrading ..."
The rns indicates why it has dropped. The share price is fairly volatile and over the last three years I can see seven other occasions when similar sized drops in share price have occured. The shareprice usually does seem to dropt o a low price higher than previous low prices over the three years before climbing back up which suggest it might be a trading opportunity for the brave.
Is the 12% excessive? As a holder I find any drop excessive! Now wondering if I want to risk trading on this share. There is such a fine line between being brave and being headstrong.
'...I am pleased to see Ashmore trading a little below fair value, while Charlemagne has got about 75% upside currently. This confirms Argo Group (ARGO:LN), which I own, remains the cheapest (alternative) emerging markets manager available. Of course Argo is a micro-cap, so I would prefer to avoid another small-cap manager in my portfolio...'
Read this and more in my latest writeup on (alternative) asset managers on the Wexboy blog.
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