The investment platform business was out with a very strong 2Q update earlier in the week, a timely update which saw the stock bounce after a ~15% decline from highs. Inflows continue to remain strong with Funds Under Administration (FUA) jumping another 7% to $49b in the December quarter alone with the $1.25b jump the second largest on record. They recently sold the International business to Morningstar – it was a thorn in the side of Praemium, never really achieving the growth and earnings initially promised so an exit here allows management to focus on continuing to grow the core business & paves the way for potential capital returns. There has also been corporate interest from Netwealth in the back ground, the initial proposal rejected by the board though we suspect conversations are ongoing.
MM is bullish PPS, looking for a test of all-time highs around $1.60
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