Reports out this morning indicate California and NY AG may partner to investigate the co's marketing
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Makor - Top Trading Ideas: BUY ASHMORE / (partial hedge with EEM) 2014-01-15 10:58:28.635 GMT
ASHMORE GROUP (ASHM LN): GBP 3.58
We are moving Ashmore, one of our favorite global financial plays, to our “most timely list” as the stock is down 13% today. The company announced net outflows of $3.5bn in the fourth quarter to $75bn. Ashmore is one of the leading emerging markets fund/hedge fund management group. With a market cap of GBP 2.5bn ($4.2bn), and an enterprise value of GBP 2.2bn, Ashmore sells on 4.8% of AUM. While this is high on an absolute basis, Ashmore's outstanding profitability has to be taken into account. Ashmore is one of the better run investment management businesses with some of the highest profitability as measured by net earnings / AUM and lowest cost base as measured by operating expenses / AUM. With a dividend yield in excess of 4.5%, and selling on 11.5x 2015 earnings, the shares are significantly undervalued and represent a great geared way to play emerging markets as flow of funds can quickly turnaround with the performance of these markets.
FULL REPORT ATTACHED
Contributed via: Bloomberg Publisher WEB Service
Provider ID: 62b589f9e3824b47b1ee1a8ebe85505d
-0- Jan/15/2014 10:58 GMT
"Earlier today, we announced favorable preliminary fourth quarter 2013 results and our first quarter 2014 view, which are indicative of the strong early traction we have achieved against our strategy." "While the Board will carefully review any credible offer made to acquire the company, any such offer must deliver value to our shareholders in excess of what we believe will be created as we execute on our growth plans and capitalize on the significant investments we have already made in that regard.
Goldman Sachs is serving as financial advisor to Riverbed and Wilson Sonsini Goodrich & Rosati is serving as legal advisor.
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Kosmos Energy May Move After Tullow’s Jubilee Update Disappoints 2014-01-15 13:22:41.79 GMT
By Arie Shapira Jan. 15 (Bloomberg) -- Kosmos Energy may move after Tullow Oil reported Jubilee 2013 exit rate 100,000 b/d given recent issues w/ FPSO’s water injection system, expects 2014 production to avg 100,000 b/d. * KOS earlier said net interest in Jubilee 2014 production 24,100 b/d, similar to 2013 levels; expects to sell 8 crude oil cargoes in 2014 * Tudor Pickering says KOS likely “down a bunch today” given cut to 2014 production/EPS from Jubilee “disappointment"; would consider buying shrs closer to support value $10-shr (vs Tues. close $11.11) * RBC says expected Jubilee to test capacity of 125,000 b/d facility, update likely puts pressure on KOS shrs * KOS has 12 buys, 6 holds w/ avg PT $14 * KOS down 10% since beginning of 2013 vs EPX index up 22% * NOTE: KOS yday said Andrew Inglis, former CEO of BP E&P business, appointed CEO and chairman of board, effective March 1
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--Editor: Steven Fromm
To contact the reporter on this story: Arie Shapira in New York at +1-212-617-1488 or ashapira3@bloomberg.net
To contact the editor responsible for this story: Joanna Ossinger at +1-212-617-7789 or jossinger@bloomberg.net