Aj Bell Share Discussion Threads

[eaaxs06] 18/5/2020 10:36

Another nice start to the day for AJB. It's strange to realise it's not even been 4 weeks since the trading update and the shares were languishing at under 3 quid.

With the full half year figures due on Thursday, I'm just wondering how much of a run up we're going to get, as all the news has already been announced?

[hawaly] 13/5/2020 12:52

Ding Dong! 🚀
😎

GLA

[hawaly] 07/5/2020 07:13

From Today's Tempus column in The Times:

"The group’s performance in its second quarter was a record. Customer numbers jumped by more than a fifth to nearly 262,200, bringing in a net £1.3 billion in new funds. While assets under administration, at £48.3 billion, were marginally ahead of last year, they fell by 12 per cent thanks to adverse market movements. The FTSE All-share was down 26 per cent over the quarter.

This brings the one rub about the sector. About 84 per cent of AJ Bell’s revenues are linked to the value of assets managed — the remainder is fixed fees for pensions and trading — so when markets fall, so do management fees. However, the broker is more than making up for this with new money coming in.

The shares, which remain below last year’s peak, are still pricey, trading for just under 52 times forecast earnings and providing a dividend yield of only 1.3 per cent, but this is a strong growth company and there should be more to come.

ADVICE Buy WHY Shares are expensive but the company is going places"

😎

GLA

[hawaly] 29/4/2020 18:09

After about 2 mins there's a Halifax service interuption page displayed.

Back up now...

Great day overall!

😎

GLA

[supremetwo] 29/4/2020 17:10

Time outs could be due to internet congestion - all the 'at homes' using Netflix etc?

[hawaly] 29/4/2020 16:21

iWeb's (Halifax) turn to be down this pm....

😫

GLA

[orinocor] 28/4/2020 08:15

The website is not allowing trading this morning. It just times out or asks you to phone in. Not impressed.

[peterbill] 24/4/2020 07:24

The Times: AJ Bell, one of the biggest investment platforms in Britain, has attracted record numbers of customers and a net £1.3 billion of new money despite chaos in the financial markets.

[hawaly] 23/4/2020 16:45

Great day.

😎
GLA

[saltaire111] 23/4/2020 09:47

Superb results. Berenberg- hang your heads in shame.

And what fantastic leadership from Andy Bell, committing three months’ remuneration to the Covid recovery efforts. Not accessing government funding either - a class act. Well done.

Salty

[saltaire111] 13/4/2020 20:59

@orchid - couldn’t agree more. That’s exactly what they’re attempting to do.

Salty

[orchid5] 08/4/2020 22:36

3 April Berenberg analyst = 230p.

Today's price just under = 300p.

Berenberg wanting price downside to acquire AJB shares more cheaply?

[hawaly] 08/4/2020 16:10

"Surge in investment account openings on UK platforms"



GLA

😎

[lomax99] 04/4/2020 14:16

No conflict, Berenberg's view is across a number of news wires:Https://citywire.co.uk/funds-insider/news/the-expert-view-aj-bell-carnival-and-saga/a1343071#i=2Https://www.sharecast.com/news/broker-recommendations/berenberg-cuts-price-target-on-aj-bell--7412598.html

[peterbill] 04/4/2020 13:15

So in Hargreaves Lansdown broker tips ... "sell AJ Bell"

Any conflict of interest?

All online brokers would feel similar pressures

I have seen about a third wiped off my portfolio, panic selling is not on the cards, in fact I have been buying shares (in small lots) which in my view have dropped too much.

The extra shares
409,805,797 original
410,003,449 new

is more like 0.048% dilution

[orchid5] 03/4/2020 23:57

Berenberg?

How reliable are they?

Also 197652 new shares (your previous post) is not 4.823% of the total.

[intelinvestor] 03/4/2020 23:39

Analysts at Berenberg lowered their price target on online stockbroker AJ Bell from 280.0p to 230.0p on Thursday, stating the group faced more acute revenue pressure in the current environment than its UK small-to-mid cap platform peers.

Berenberg said that in addition to headwinds from market weakness in assets under management-related fees, AJ Bell was "uniquely exposed" to falling interest rates and stated that consensus downgrades thus far had "failed to recognise this pressure".

"AJ Bell's own guidance on market and interest rate sensitivity implies a revenue headwind in the region of c€12m 2020E, rising to c€25m in 2021E and c€30m in 2022E," said Berenberg.

"Since the end of January, consensus downgrades of €5m-13m fall short on average of guidance for the market impact alone, implying downgrades have yet to reflect falling interest income at all. We expect further downgrades as consensus adjusts to the current environment."

While the German bank acknowledged that first-quarter platform flows looked like they had been "strong", its analysts noted that AJ Bell's flows were likely to rebase lower as time moved on given that even if customer behaviour is unchanged, flows would still be impacted as the value of portfolios being transferred falls with the market.

Berenberg, which also cut its earnings per share estimates for AJ Bell by roughly 20%, now expects AJ Bell to underperform as analysts' estimates fail to reflect current conditions.


hxxps://www.hl.co.uk/shares/share-research/share-tips/stockbroker-tips/broker-tips-hikma-pharmaceuticals,-aj-bell

[intelinvestor] 02/4/2020 22:23

anyone miss this update before 4pm
AJ Bell PLC Issue of ordinary shares and total voting rights

to add 4.823065% dillusion .


409,805,797 original
410,003,449 new

[intelinvestor] 16/3/2020 18:20

hxxps://www.mortgagesolutions.co.uk/news/2020/03/16/bank-of-england-could-lower-rates-and-restart-qe-to-shield-against-coronavirus-hit/?fbclid=IwAR2_PODTEG-8UVSD3V9m-rR-YsN6W-Q_PqkDcw67W-RiPAe0T8lViXnEnqo

[intelinvestor] 15/3/2020 20:35

Orch - On that assumption it could easily go the other way.

[orchid5] 13/3/2020 22:56

With over 200,000 customers, a couple of extra trades by just half is close to £2m extra income from dealing charges.

Done many more trades this last week with top-ups and shares I had my eye on.

[intelinvestor] 13/3/2020 22:49

In the UK, the Financial Conduct Authority also announced a temporary ban on short-selling - or betting that a share price will fall - for Italian-listed businesses.

Experts said President Trump's 30-day ban on foreign nationals entering the US, combined with increasingly drastic measures being introduced across the world to contain the virus, had created a 'perfect storm' for markets.

[intelinvestor] 13/3/2020 22:37

“A rate cut is unlikely to be enough on its own to stop the UK from experiencing a significant economic dent,” said Russ Mould, investment director at AJ Bell, in commentary Wednesday. “Low borrowing rates won’t necessarily get worried consumers spending again if they are cautious about going outdoors or are even forced to stay inside because of coronavirus-related issues.”
Washington Post-11 Mar 2020

[intelinvestor] 13/3/2020 22:26

Shares in AJ Bell (AJB) fell by as much as 26 per cent in early trading this morning, after the company said yesterday’s emergency 50 basis-point cut in interest rates, coupled with large asset price falls, would impact its trading performance this year, and possibly next. Analysts at Berenberg also moved their recommendation on the investment platform to a ‘sell’, arguing that group’s valuation did not reflect potential earnings downgrades.

Investors Chronicle-12 Mar 2020