MM view on PTM
Hi James, Just wondering what your thoughts are on PTM. I purchased at $8.00 four years ago and the share price has slowly trended down to under < $2.00. Under your rules is this a Sell?
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Answer
Hi Geoff,
Unfortunately, this has been the fate of many active fund managers over this time frame, PTM have just had the added impost of their founder retiring and the founder’s ex-wife selling shares which tends to satisfy the markets appetite for stock. On a P/E of ~9 this stock is incredibly cheap however their earnings are in decline. In FY21 they made a net profit of $163m, in FY22 this is expected to drop to $121m going to $106m in FY23. Share prices follow earnings over time and as such, we do not like PTM.
