Impax Asset Management Share Discussion Threads

[robsy2] 06/12/2016 09:02

Thought I'd share the above with you, it's a way of trying to stay objective....I have been buying and am a happy holder. It looks good going forward, obviously the markets could take a tumble but in general the funds have proved quite resilient. The dilution is the problem here but I feel that Simms and co, who have been at it for 20 years or so are now at the life stage and the biz stage to move to the next phase which is to rapidly expand the AUM to 10billion ? ?.
We should be good for 10-15% annual returns for the next 5 years or so,I hope.
R2

[robsy2] 06/12/2016 08:57

Analysis of Impax(IPX), using Jim Slater’s Zulu Approach


1. Five Year Record (5 years positive earnings growth)

YES

2. Low PEG Factor (PEG below 1 – eg. a 10% eps growth on a PE of 10 or less)

YES…. year end 30.09.16
PEG = Current PER / profits growth
PER = 52.75(sp)/3.62(fdeps) = 14.57
PEG = 14.57/ 16* =0.875
So just about a buy if <0.75=BUY)

*Profits growth of 16% based on growth in fdeps from 2015(3.13p) to 2016 (3.62p)

3. Optimistic Chairman's Statement

YES, optimistic.

4. Strong Financial Position

YES. 10.5m GBP of distributable cash on the B/S cash after seed investments, provisions, share purchase obligations etc are taken into account. Strong cash flow, no debt.

5. Competitive Advantage

YES.A focused, scale-able business model that is expanding rapidly, great operational leverage, very strong reputation, excellent product performance.AUM growing rapidly.

6. Something New

YES. Less dilution going forward, starting to become a serious dividend payer, the new investments that have held back earnings of late now give IPX strong operational leverage going forwards. Legislation & investor appetite are pushing business their way. They have the expertise, smart distribution and keen pricing.

7. Small Market Capitalization (a small cap stock - anything in the FTSE250 or above is out)

YES.MC £67m at 52.75p.Looks good value.

8. Relative Strength (as in the share price movement compared to the FTSE All Share Index)

YES. 12 month share price +30%, compared to FTSE All Share Index +10%





9. Dividend Yield

YES. 2.1p = 4% based on 2016 results, (2015 divi 2.1p included special divi of 0.5p.

10. Reasonable Asset Position

YES. The balance sheet is very strong, room for more special dividends.

11. Management Shareholding

YES. Don’t get me started…They have been very generous with themselves in the past so they are now motivated to get the share price up and the dividends up.


CONCLUSION


This analysis is based on the Jim Slater 11 point test to find underrated shares. It scores 11/11 so the share is underrated!


NOTE: Remember shares can go down as well as up. This is not to be read as a recommendation to buy this share. It is simply an explanation of why I bought.







Dilution Worries

Senior management has been very generous with themselves over the years. Apart from fat salaries, they have awarded themselves lots of free shares. I sold in disgust some time ago because of this issue. Now the directors have loaded up on free shares, they will no doubt focus on dividend payments and improving the share price performance which has been lackluster to date The time looks right now so I am happy to be back on board again.

[topvest] 03/12/2016 08:39

This will make you laugh. Stockopedia forecasts for next year are 3.6p EPS and 2p DPS. More likely to be well over 4p and 3p in my view. Really nice to own a company that is almost certain to blast its next year earnings forecast. How many companies with this sort of growth and dividend progression can you buy at this sort of price?

[varies] 02/12/2016 10:24

and me, too.
The managers pay themselves very well in cash and options but they are good at their job and do leave a reasonable amount for the shareholders.
I have also bought some Impax Environmental Markets Trust (IEM) shares for a politically-correct daughter. It is an "ethical" fund that has performed well.

[wjccghcc] 02/12/2016 08:15

And me! One of my top 10 holdings. At some point they'll be bought out at a good premium. Until then, happy to take the 4% yield and the rapidly improving performance.

[topvest] 01/12/2016 21:28

Its great that we aren't getting any interest on this BB. Just you and me NTV! This little gem hasn't been noticed by most private investors. Slide deck and Annual Report on their web-site as well.

[ntv] 01/12/2016 10:18

that RNS was released after hours
i presume they meant to release it this morning along with the results

[topvest] 01/12/2016 09:48

Yes, they are doing really well. The future is green...the future is bright. Must be close to £5bn AUM by the end of November with the latest renewable energy fund.

[ntv] 01/12/2016 08:17

everything looks pretty good here
nice increase in divi taking the yied to over 4.25% based on last nights closing price

[robsy2] 11/10/2016 18:58

Update from yesterday

Analysts At Peel Hunt Retained Impax Asset Management Plc (LON:IPX) As Buy

Today analysts at Peel Hunt retained Impax Asset Management Plc’s (LON:IPX) shares as ‘Buy’ in a report released to investors.

According to Peel Hunts price target of 63 on the company’s stock this indicates the broker now believes there is an increase of 28.21% from Impax Asset Management Plc’s current price of 49.14.

LON:IPX

In the last year Impax Asset Management Plc’s stock price has increased by 0% from 0.00 to 49.14.

The number of Impax Asset Management Plc shares in issue is 106,725,000 which have a current share price of 49.14 bringing Impax Asset Management Plc’s market capitalisation to 52.44M GBp.

The 52 week high of shares in Impax Asset Management Plc is 53.13 while the 52 week low for the company’s shares is 40. The businesses 50 day moving average is 49.41 and its 200 day moving average is 48.66.



Impax Asset Management Group plc is a United Kingdom-based investment company, with assets under management and advice, primarily for institutional clients through both listed and private equity strategies. The Company is engaged in investment management. The Company operates through three segments: Listed Equity, Private Equity and Property. Its investments are focused on a small number of deeply researched global equity strategies across energy efficiency, alternative energy, water, waste/resource recovery, food and agriculture related markets. The Company offers professional and institutional investors exposure to a range of global and regional equity strategies, including specialists, leaders, water, food and agriculture, and Asia-pacific. It works with sectors, such as energy, waste, and sustainable food, agriculture and forestry. Its subsidiaries include Impax Asset Management Limited, Impax Asset Management (AIFM) Limited and Impax New Energy Investors (GP) Limited.

[topvest] 10/10/2016 08:35

All very good in the trading update. Bought a few more. Enterprise value of £36m is a nonsense for £4.5bn under management. Next year will also no doubt benefit from expanding the PE FUM which must be close given the realisations about a year ago.

[topvest] 10/10/2016 08:32

All very good in the trading update. Bought a few more.

[topvest] 09/10/2016 11:06

Charlemagne was loss making going forward. It's profitability had been boosted by high prior year performance fees which looked (with the benefit of hindsight) excessive.

Impax is a very different proposition with a 20 year growth record and a credible strategy. Think the future is very bright indeed as the move towards green sustainable non-fossil fuel investments is accelerating. Tempted to have yet another top-up.

[varies] 08/10/2016 18:59

Robsy2
Thanks. I had not realised that IPX ever sank as low as 5p but I am glad you made a good profit.
I have been looking at Charlemagne Capital (CCAP) for which Fiera is offering about £40 million. It specialises in emerging markets and had Funds Under Management of $2.2 billion(say £1.7 billion)on 31.08.2016. This price represents £23.5 million per £1 billion of FUM.
IPX has FUM of £4.1 billion and on this basis would be worth £96 million.
IPX has 128 million shares outstanding but owns 15 million itself. So the market cap is 113 million x 47.625p, viz £54 million rather than the £61 million shown by ADVFN.
This FUM figure of £4.1 bn may not be strictly comparable with CCAP's figure but IPX is profitable whereas CCAP is not.
Fiera, a much bigger company, is buying CCAP to fill a gap in its offering of investment funds. Whether IPX would also fill a gap in some larger group's offering I do not know but it does seem modestly priced and we get a yield of about 3%.

[robsy2] 06/10/2016 17:21

HI Varies
My word you go back a bit, well before me, though I am vaguely aware of the Kern Bridge name. I didn't know they had a rights issue. The IPX story began with the name change , I first invested at 5p and bought right the way up , exited with frustration at the share dilution . I still think it is excessive and of course that is why the share price has done so badly , the constant dilution has killed EPS, anyway, you can read my gripes on the subject on the thread... BUT i believe this problem is largely behind us now and we may see shareholders being rewarded because the company is enjoying great success and in fairness, the team has done well, AUM is up over 50% this financial year . I am expecting the resuts to be good for the next 5 years or so at least..
R2

[topvest] 05/8/2016 16:53

Thanks another £0.2 billion jump in a month. Looks cheap versus EPS in 16/17 so could get another re-rating at some point later this year. This is definitely a growth stock in my view, but it's not valued as one.

[robsy2] 05/8/2016 12:27

GBP£4.2bn US$5.6bn
Assets under management and advice as at 31 July 2016.


Taken from the website.
Best
R2

[robsy2] 12/7/2016 11:49

I have bought a few more this morning as well.
R2

[topvest] 06/7/2016 22:00

Yes, they are doing very well. Bought this three times this year and very pleased.

[robsy2] 06/7/2016 11:03

On 30 June 2016 AUM was ca. GBP4.0 billion, which was 13% higher than AUM at the start of the quarter on 1 April 2016 and 42% more than AUM at the start of Impax's current financial year on 1 October 2015.

Good update. They convert the AUM data into GBP.There are 3 tailwinds here.
GBP weakness, good performance from the funds and they are capturing new business. Maybe a fourth as well , they are now committed to giving profits to shareholders.
R2

[robsy2] 27/6/2016 16:24

This is a safe haven , it is pretty well untraded!!
R2

[topvest] 11/6/2016 13:15

Think this asset manager is at the tipping point. It's in the right sector with a great record and at a point where growth in AUM has a disproportionate impact on the bottom line. As oil, gas and coal start to die as an industry and investment proposition, what a great time to be in the green and sustainable space, particularly when you have been in that space for 20 years already.

[robsy2] 11/6/2016 07:15

AUM at 31.05.16 3.7 billion, up from 3.1 billion at 31.12 15.
R2

[robsy2] 25/4/2016 11:47

Sp moving forward. The fact its thinly traded with a low free float and very wide spread puts off buyers.
It's a buy and hold stock.
R2