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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.
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-0- Jan/15/2014 10:58 GMT