Janus Henderson Group PLC

Adjusted Revenues Rose YoY in FY 2018: Janus Henderson Group PLC (ASX: JHG) had published the results for FY 2018. The company’s adjusted revenues witnessed a rise on the YoY basis and stood at US$1,860 million in FY 2018 because the lower performance fees got offset by the increased management fees. In FY 2017, the company posted adjusted revenues of US$1,848 million. At the end of FY 2018, the company had total AUM amounting to US$328.5 billion which the decline of 11% on the YoY basis due to negative market returns of US$41 billion which was witnessed in Q4 FY 2018.

In FY 2018, the company’s dividend per share amounted to US$1.40 which implies the rise of 17% on the YoY basis.


Key Metrics (Source: Company Reports)

Strategic Priorities Moving Forward: Janus Henderson had listed out five strategic priorities for FY 2019. The company stated that they would be working towards the client experience, producing the dependable investment outcomes, increasing the focus as well as operational efficiency, enhancing the proactive risk and control environment as well as they would be developing new growth initiatives.

Further, the Board of the Directors declared fourth quarter dividend of US$0.36 per share with the record date of February 15, 2019 and payment date of February 26, 2019. The company had also stated that they would be announcing the results for Q1 FY 2019 on May 2, 2019 and, on the same date, they would be conducting their AGM for FY2019.
 
Stock Recommendation: On the daily chart of Janus Henderson Group, Exponential Moving Average or EMA has been applied and default values were used. As per the observation, the stock price has touched the EMA and a crossover might occur moving forward. If this crossover occurs, the stock price might witness a decline. Based on foregoing, the market players need to closely watch the stock at the current market price of A$31.550 per share and should wait for the correct entry levels.
 

WAM Research Limited

A Look at December 2018 Update: WAM Research Limited (ASX: WAX) had recently published the investment update for the December 2018. The company stated that WAM Research investment portfolio witnessed the fall of 5.1% in December because core small to mid-cap holdings witnessed the negative impact due to increased volatility in the equity markets. At the end of December 2018, gross assets amounted to $206.6 million.


Gross assets (Source: Company Reports)

WAM Research Limited had stated that GTN (ASX: GTN) as well as Emeco Holdings (ASX: EHL) largely impacted in December 2018. WAX stated that, in December 2018, GTN had contributed to underperformance as it gave disappointing earnings downgrade after the weakness in Australia geographic segment. 
   
What to Expect from WAX Moving Forward: Moving forward, the performance of WAM Research Limited is expected to be sensitive to the performance of the companies which are present in the investment portfolio. The company’s investment portfolio is expected to be sensitive to the volatility in the equity markets. The company had provided top 20 holdings in the alphabetical order, according to which, A2B Australia Limited (ASX: A2B) happens to be on top while Austal Limited (ASX: ASB) had bagged the second position.

Stock Recommendation: On the daily chart of WAM Research Limited, Exponential Moving Average or EMA has been applied and default values were considered for the purposes. After careful observation, it was observed that the stock price has crossed the EMA and had trended in the downward direction. This signifies that the stock might witness bearish momentum.

However, the company happens to be in a decent position with regards to the net margin. Its net margin at the end of FY 2018 stood at 317.1% which implies the substantial YoY rise of 97.1%.  
Based on the above-mentioned factors, we maintain our “Speculative Buy” rating on the stock at the current market price of A$1.355 per share.  
 

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