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IAM.TO: Integrated Asset Management


txitxo
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  I would like to know what the board, specially the canadian folks, think about this company. It recently announced the loss of a customer which represented 8% of its revenues and today is dropping like a stone, almost 17%. At first sight it seems dirt cheap, with negative EV, 2011 reported earnings of 0.15$ on a  share price of 0.5$, etc. The company, which has 2.3B$ in AUM, seems to be flying below most radars. Is this part of Mr. Market depressed mood on financials? Or is there any particular issue with this company?

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Money management has a lot of operating leverage. Which means that if your managing 1B$ and you double that amount your costs do not double. This is a great business... except when it's the other way around. I believe it is somewhat warranted that a money management stock would drop by more then the revenue % it lost.

 

BeerBaron

 

 

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  Thanks, beerbaron. You are right, although apparently the arrangement with this client was not specially lucrative, since the fraction of AUM lost is double the fraction of revenue loss. The company still seems very cheap, even if most of the revenue from that client went into pure profits, the company would probably still be making ~0.10$ a year on a 0.56$ share price, that for an owner-manager stock, with no debt, 0.7$ per share in cash and a 0.05$ dividend.

 

  But then, there are plenty of cheap financials around... 

 

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  • 4 years later...

Anyone still interested in this name?

 

With a recent asset raise, they seem to be in growth mode.

 

I wrote it up on Seeking Alpha but I didn't get any feedback so I'm curious if anyone has taken a look here recently.

 

http://seekingalpha.com/instablog/5449451-safety-in-numbers/4511746-integrated-asset-management-is-growing-under-the-radar-with-exceptional-return-potential

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