Wednesday tips round-up: Ashmore, Fenner

11th Sep 2013 07:29

Emerging markets and emerging market debt-focused fund manager Ashmore quipped in its full-year results statement that the swings in investor sentiment towards such investments are "myopic". Its institutional clients, about 90 per cent of the total by value, are prepared to take a longer view, the fund manager says. Even so, Ashmore saw the investment value of its assets under management (AuM) - up by $5.7bn (£3.6bn) in the first half - drop by $5.4 bn in the second half with $4.8bn of the decline coming in the fourth quarter alone. Having said that, AuM did rise by 22% over the year, to $77.4bn while operating earnings improved by 7% to $252m. Ashmore shares sell on almost 14 times earnings. They look high enough for now, until sentiment on the company's core markets changes, The Times´ Tempus column says.Fenner's shares have fallen in the first half due to the perceived exposure to the slump in the Australian mining sector, which the company provides with conveyer belts. However, sometimes the market gets it wrong, according to The Times' Tempus column, which pointed out that half its revenues there are services and renewal of parts rather than belts. Also, the belt side of the business may improve as companies try to get the most out of existing mines. They are also providers to the US coal industry, which is recovering. Its advanced engineering products side, about 40% of the group, is often overlooked. This supplies seals to the American oil and gas shale industry. While the price of gas may remain low in the US, the prospects remain strong. This financial year, which started this month, is expected to show a return to more robust growth. Tempus said the shares look like good long-term value.Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.AB/RD