Question 1. What is your opinion of Platinum Asset Management (PTM) right now at around $4.80, and specifically its business long term in Asia? Its share price has come down from over $5 (even though markets generally in Asia are up this year) but it still has a 6% dividend yield.
Answer: I am always amazed at the interest by our subscribers in funds management businesses like Platinum (PTM), which seems disproportionate to the importance of the sector. Putting that to one side, I think headwinds like pressure on fees and funds outflow arising from indifferent performance means that Platinum might continue to do it fairly tough.
As for the brokers, the consensus target price is $4.43, about 8.8% lower than the last closing price of $4.86. This is impacted by one broker with a target price of $3.40, but even so, the highest is only $4.85.