Two stocks that got hammered – Platinum Asset Management Ltd and Saracen Mineral Holdings Ltd

Platinum Investment (Asset) Management Ltd

PTM Details
· Average FuM and Fee Revenues slightly down: Platinum Asset Management Limited (ASX: PTM) stock fell 3.17% on November 18, 2016 with some market volatility. PTM’s PAI, which is a new listed investment company debuted in September and New Irish UCITS fund range, Platinum World Portfolios, started in November and has FuM of US$25m over three funds (International, Asia, Japan). Moreover, the average FuM and Fee Revenues for PTM were down 1% for FY 16, and a strong first half being offset by subsequent China volatility and Brexit. PTM reported a 6% fall in the profit after tax to $199.9 million in FY 16 due to lower FX gains, higher staff costs and increased business development spend. However, the margin remained attractive at 82%.

· Recommendation: PTM stock has fallen 13.5% in the last six months as on November 17, 2016 and has a decent dividend yield with a reasonable P/E. We give a “Buy” recommendation on the stock at the current price of – $ 5.20
 

FY 16 Financial Performance (Source: Company Reports) 

Saracen Mineral Holdings Ltd

SAR Details
· Expanding financing facility: Saracen Mineral Holdings Ltd (ASX: SAR) stock fell 5.2% on November 18, 2016 due to falling gold prices. On the other side, SAR has appointed Morgan Ball as Chief Financial Officer, effective from December 05, 2016. Moreover, SAR has entered into A$ 150 million long-term senior corporate financing facility with a syndicate of three major international banks, BNP Paribas, Citibank N.A. and Westpac Banking Corporation. But we believe the pressure in the stock would continue in the coming months which already fell over 21.85% in the last six months as on November 17, 2016.

· Recommendation: Trading at a high P/E, we give an “Expensive” recommendation on the stock at the current price of – $ 1.00

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