ANCHOR CAPITAL – NOT CHEAP BUT PRETTY IMPRESSIVE
The Anchor Capital results came in at the top end of expectations with HEPS for the f irst six months to June up 50.2% at 20.8c. The really important f igure was that for assets under management (AUM), which grew 74% to R15bn. This is still a relatively modest number but it offers increased fees while direct costs are likely to remain largely f lat. Assuming the asset manager adds another 50% to HEPS in the second half, it remains on track for 50c HEPS for the full year. When the trading update came out the stock was at 1 200c and I said it was looking attractive, but it has run again and as I write this, it is trading at around 1 450c. This puts it on a forward P/ E of some 29 times. Not as cheap, but if HEPS is growing at 50%, Anchor Capital remains attractive to adventurous investors.