Aj Bell Share Discussion Threads

[ochs] 17/8/2020 19:56

This explains the fall into the close on Friday 14th.
Chairman and CEO selling (in addition to the MD of Youinvest the Friday before) would suggest to me that they all see the shares as fully valued at up to 450p.
The Chairman sold 29% of his total holding.
If the shares fall back to the 350p to 380p area they'll become a buy again, but I'm not sure I'd jump in at the current price.
Who will sell on Friday 21st?!

[orchid5] 17/8/2020 19:30

Close today 449.00p +17.50p +4.07%

Must be plenty of fund managers snapping up most of the director sales.

[saltaire111] 17/8/2020 18:15

Directors selling again. AB selling little over 1% of his holding @ £4.37.

[saltaire111] 17/8/2020 11:46

Something afoot? Perhaps HL are running a rule over AJB after all???

Salty

[saltaire111] 11/8/2020 22:39

I don’t think HL’s pension business is weak. I hold shares in both AJB and HL. I just think AJB’s SIPP business is stronger and their platform is better. And their advisory business is more effective.

Can’t blame Galbraith for selling the shares - they’ve got to take the fruits of their labours at some point.

Salty.

[ochs] 11/8/2020 21:21

Less than 10% of his total stake, but as MD of Youinvest it would suggest he thinks the shares have topped out for now, and he's taken out £1m+

[lomax99] 11/8/2020 18:52

Chunky Director sale, not surprised.

[lomax99] 11/8/2020 09:03

Compare a whole range of financial metrics, HL. is, by far, the stronger business. AJB's racy PE ratio does amuse me however, if HL. could match that the share price would be up around £35!!

[ochs] 11/8/2020 08:07

Why do you think HL's SIPP business is weak? That's actually been one of the biggest drivers of growth for HL over the past 10 to 15 years...

[saltaire111] 10/8/2020 22:42

Delusional? Moi? No. Don’t think so.

HL needs to keep growing. Organic growth is getting harder. They are making progress with younger investors, but they are lower margin customers. AJB’s customer base is more mature, and they have a fabulous SIPP business that would fit beautifully with HL’s weaker pension services.

I do not think I am being delusional...

Salty

[lomax99] 10/8/2020 19:44

You are delusional, IMO the chances of such a tie up are sub zero!

[saltaire111] 10/8/2020 19:12

Ochs - if we can break through £4.50 convincingly, then £6.00 is not out of the question. I keep banging on about the potential in an HL and AJB tie-up. They compliment one another, with AJB’s cheaper operating base (Manchester) and complimentary pension management specialism. Put that together with HL’s customer base and there will be mahoosive revenue opportunities, and significant cost synergies.

If that we’re to be under consideration, I wouldn’t rule out £8.00 a share.

Salty.

[orchid5] 10/8/2020 13:28

Mine is £16-10 bags full!

[ochs] 10/8/2020 12:47

Salty, what's your target price once 450p breaks?

[saltaire111] 10/8/2020 10:01

AJB chart looking positive. Any push through £4.50 will be very bullish. AJB’s brand recognition really starting to gain traction, evidenced by customer growth numbers in the recent update. Looking good.

Salty

[eaaxs06] 05/8/2020 08:35

Come on AJB, slowly, slowly, we’re getting there, to close that gap at 446p from 21/5.

As soon as that’s hit, the share price could start to move ahead smartly.

Good luck everyone, Sid.

[bullsvbears] 25/7/2020 18:46

.... or buy in the expectation then sell on the reality....

[umitw] 24/7/2020 12:34

It was in the price already.People were in the know, which is insider dealing IMO.

[saltaire111] 23/7/2020 12:10

Bizarre market reaction to these superb results.

Salty

[ochs] 23/7/2020 12:08

Excellent results. Now where have I seen this Cash Savings Hub idea before? ;)

[saltaire111] 23/7/2020 07:06

Nice update this morning. Love the cash savings hub idea.

Salty.

Q3 trading update

AJ Bell plc ("AJ Bell" or the "Company"), one of the UK's largest investment platforms, today issues a trading update in respect of the three months ended 30 June 2020.

Performance overview

Total customer numbers increased to 282,619, up 26% over the last 12 months and 8% in the quarter, with total net inflows in the quarter of GBP1.2 billion (2019: GBP1.2 billion).

Total assets under administration (AUA) increased to GBP54.3 billion, up 7% over the last 12 months and 12% in the quarter. The FTSE All-Share increased by 10% over the quarter.

AJ Bell's customer growth and strong net inflows during the quarter were driven by the platform business:



-- Platform customer numbers increased organically by 20,370
-- Total platform customers closed at 268,444, up 27% year-on-year
and 8% in the quarter
o Advised customers of 106,335, up 11% over the last year
and 2% in the quarter
o D2C customers of 162,109, up 41% over the last year
and 12% in the quarter
-- Platform underlying net inflows, representing organic
growth in the quarter, increased by 30% over the prior
year to GBP1.3 billion (2019: GBP1.0 billion)
o Advised underlying net inflows of GBP0.5 billion, in
line with the prior year
o D2C underlying net inflows of GBP0.8 billion, up 60%
on the prior year
-- Platform AUA closed at GBP47.7 billion, up 10% over the
last year and 14% in the quarter
Customer dealing activity and financial outlook

As reported in the Company's interim results for the six months ended 31 March 2020, stock market volatility drove record levels of dealing activity by D2C customers in the first half of the financial year, generating increased transactional revenue. Although trading volumes have now fallen from the peak levels seen earlier in the COVID-19 crisis, the number of trades placed by D2C customers in the quarter more than doubled compared to the same quarter in 2019, exceeding management's expectations.

As a result, management currently expects profit before tax for the year ending 30 September 2020 to be at least GBP2.5 million above current market consensus(1) .

Customer dealing activity is expected to normalise in Q4 of the current financial year and therefore management reiterates its previous guidance in respect of the year ending 30 September 2021.

(1) As at 20 July 2020, Company compiled consensus for profit before tax was GBP43.4 million. Further details are available at ajbell.co.uk/investor-relations/analyst-consensus

Launch of AJ Bell Cash savings hub

The Company is preparing to move into the GBP1.5 trillion(2) retail cash savings market with the launch of the AJ Bell Cash savings hub via its D2C platform.

As part of the Company's commitment to make it easy for people to invest, the AJ Bell Cash savings hub will enable customers to access a range of competitive notice and fixed-term savings accounts from a range of UK authorised banks. They will be able to apply for multiple accounts quickly and easily, with no paperwork, and manage their cash savings via one online account that sits alongside their existing AJ Bell Youinvest accounts. It will also give them peace of mind that the savings accounts they have within the Cash savings hub will be covered by the Financial Services Compensation Scheme (FSCS), up to the limit of GBP85,000 per bank.

AJ Bell will begin testing the Cash savings hub with a small group of existing customers before the end of July and expects to launch it to all AJ Bell Youinvest customers by the end of the calendar year.

(2) Source: Bank of England UK households' deposits statistics, May 2020

Andy Bell, Chief Executive Officer at AJ Bell, commented:

"Markets have rebounded from the lows seen in the previous quarter but remain volatile and this has helped increase the value of assets under administration and customer trading volumes. Our focus throughout the COVID-19 crisis has been on ensuring we are here for customers and advisers when they need us and this has translated into strong net inflows onto the platform and continued strong organic growth in new customers.

"With interest rates so low, it is increasingly important that people regularly check the rates they are earning on their cash savings and consider switching accounts if they want to ensure they get a better return, but most people don't have the time or inclination to do that. Our new AJ Bell Cash savings hub will enable customers to manage their cash savings more effectively without having to go through lengthy, paper-based application processes each time they open a new account, whilst ensuring they benefit from FSCS protection.

"The quality and commitment of our staff has enabled us to operate all services on a business as usual basis throughout the coronavirus pandemic. This operational resilience demonstrates the strength of our business model which has been appreciated by many customers and advisers. The long-term growth drivers of the platform market remain undiminished and we are well positioned within the market to benefit."

[saltaire111] 19/7/2020 20:27

I would like to see AJB develop something for millennial investors. There’s a gap that’s being tapped into by robinhood that AJB could go for. It would be worth them developing a re-hashed version of the youinvest platform for that age demographic.

Salty