Schroders Share Discussion Threads

[chef] 14/11/2006 19:08

Trading looks fine so i presume traders dropped the price today. these look a decent long term buy to me at these levels.

[chairman2] 01/11/2006 19:27

agree Finess - the magic words in banking these days seems to be

"Wealth Management" SDR great fit with the transaction and admin sides

of any retail bank and wholesale banks often lack credibility for
their corporate clients personal account management

[finess] 01/11/2006 19:19

Chaiman

Such small volume moves the SP, I could give it a kick and so could others.

Now that they are out of banking a fit with a pure banker (if there is such a thing) would be sensible.

To much Caz and Eaton

[chairman2] 01/11/2006 18:31

support becomes resistance becomes support.

retail financial services read across should be very positive
- lots of sales of pension products like SIPPS, underlying cash
gets invested somewhere.

then all Assets Mans. should be benefiting from higher markets
which should translate into better fee income (now charged monthly
so smoothed over year.)

as I said months ago reading the direction here depends entirely
on your view of markets.

[finess] 01/11/2006 18:16

The market has missed this one, there is not a down side at these levels.

[finess] 07/10/2006 10:29

MNGS looks like a good move for SDR, do they own the shares or will it be client money. The RNS said 9% plus if my memory serves me correctly.

[silent_angel] 06/10/2006 08:02

Just to warn you i am out now as the "week" is coming to an end.

[broadwood] 05/10/2006 13:32

There's some truth in that - contracts are often sorted out in advance though.

[chairman2] 05/10/2006 11:36

family shareholders in Schroders - are they still in control?

Taking over asset managers is a mugs game - it triggers all the options for the star managers and they head for the tax havens to collect and you are left with a shell

[broadwood] 05/10/2006 10:58

Apart from the fact that Schroders will benefit from rising markets by way of higher fee income, the statement by Barclays that it is definitely not averse to acquiring wealth management companies will have livened up the price today.

Would be a nice fit for Varley methinks.

[chairman2] 03/10/2006 11:25

Silent_Angel

thanks for the post of the Barclays share of the week note
- which otherwise I would not have seen

[silent_angel] 03/10/2006 06:46

Schroders is a global asset-management company based in London. In our view, it is a high-quality company with decent management. And we think it offers good value relative to other asset managers: it is on a PE ratio of around 13 times, compared with multiples of around 18 for managers such as Aberdeen.

The firm's recent results have been fairly upbeat. In August, it reported a solid set of interims, which were broadly in line with expectations. Profits were up by 7% overall, and by a healthy 27% on an underlying basis. The majority of profits come from the core asset-management business. That performed solidly but is facing higher marketing costs and infrastructure investment. The outlook statement accompanying the results was positive, with management stating their intentions to continue developing the business going into 2007.

Schroders has a truly global reach. Its 33 offices are grouped into four regional structures, covering the UK, continental Europe, Asia Pacific and the Americas. The company's operations are split into four divisions: the core investment-management division, largely aimed at institutions; a private-banking division, which provides investment-management and banking services to high-net-worth individuals and smaller institutions; a private-equity division; and a group net income/costs division, which manages income from the company's liquid and seed capital. Schroders has over £120 billion of assets under management.

Schroders is estimated to be holding some £800 million of surplus capital. The management have yet to make clear what they intend to do with this, but the most likely options appear to be a return of capital to shareholders or an acquisition. We are confident that, in the case of any future acquisition, the management would create shareholder value.

We do see some risks, however. As Schroders is an asset manager, its profitability is vulnerable to any significant declines in global stock markets, particularly the FTSE All-Share. There is also some risk of a further large net outflow of funds, as happened last year when two high-profile portfolio managers departed. However, that should not have any significant long-term impact.

Schroders certainly looks good value at present. If we assess only the core business, we find a fair-value estimate of around 870p, a little below the current price. However, when we take into account the £800 million of surplus capital floating around, we get a true fair value of 1090p. That gives upside of over 20% on the current share price. So, at current price levels, we recommend taking advantage of the recent weak performance and adding this stock to your portfolio.

Last updated: 02 October 2006


This is from Barclays "share of the week"

[chairman2] 02/10/2006 15:59

what am I missing?

ADFVN has net cash per share of 137p and gross cash per share of 736p

[silent_angel] 02/10/2006 12:54

Barclays has this one as their "share of the week" this week due to having an excess of money that would make it worth 1090p !!

[finess] 20/9/2006 10:49

Interesting chart, no bottom at this moment in time. Bid at about £7.00 level if Banks want to consolidate. Course SDR aint a bank now.

[salpara111] 17/9/2006 14:12

Actually if you have read up about the way share prices behave prior/post promotion or demotion from an index you would be aware that company's tend to out perform immediately after being demoted from an index by circa 3%. The reason is that all the fund managers who have to get rid of a stock they are holding in an index tracker fund will have anticipated the fall and dumped their stock in advance.
Given that these boys have circa £500 M cash on the books there are a range of potential scenarios I can see happening here.
1. A larger predator comes calling
2. They yield to their larger investors and either hike the divi or start a share buyback
3. They go on an acquisition spree.
I am planning on buying on Monday having watched these for some time and I know which option I would prefer!
I'll have number 1 please!
Number 2 will unlikely give a good return in the short term and number 3 may do more harm than good!

[h4rsh2] 04/9/2006 10:44

LATEST .... SDR TO COME OFF FTSE 100 .. MORE DROP IN PRICE TO COME?

[chairman2] 22/8/2006 13:50

Glad to hear the staff all positive

cannot understand this Wealth Managers everywhere are reporting a record year

the first half Hedge Funds crash and burn has sent the rich scurrying back for protection

[finess] 22/8/2006 12:49

No, dont agree, looking for a bottom here at some time in the near future, but cant see the end of the downtrend yet. Employees are all perky in Geneva.

[chairman2] 20/8/2006 11:28

This looks a classic short now at 948p with a -5% target below 900p.

Anyone agree

[jezboy1] 18/8/2006 08:31

Well I am out at 964 - are you staying long for a while Chris?

good luck everyone :-)

[jezboy1] 14/8/2006 15:56

This broker tip likely helped - (from Sharecast web-site)

Bridgewell Securities today advised investors to switch out of Henderson and into fund manager Schroders.

The broker upgraded Schroders to �overweight� from �neutralʏ33; while Henderson went the other way, dropped to �neutralʏ33; from �overweight� ahead of its results next week.

Bridgewell argued that the market�s reaction to Schroders� interims released on Friday was well overdone given the group�s good defensive qualities.

about 965-970 is my target with a stop of 900 (the sort of no lose 'punt' I like), lets see what the week holds, suspect the market rally may have a bit more steam in it....

[chairman2] 14/8/2006 15:38

Bounce back has transformed the chart - solid resistance level protecting downside. A punt depends on your view of the market

[jezboy1] 14/8/2006 11:20

Good call chris -

bought in 883 this morning