Question: I was reading in another journal that gold prices are about to boom, and that particular company was urging clients to buy big on the gold market. What is your view on this trend?
Answer (By Paul Rickard): I have never been a gold bull, and can’t see why I would change that opinion.
In US dollar terms, the gold price is near its recent low. Interest in US dollars and rising US interest rates are working against gold. I expect this trend to continue. Sorry, I don’t agree.
Question: I am a Platinum Asset Management shareholder, seeking your thoughts on whether it is a good buying opportunity and your general opinion.
Answer (By Paul Rickard): I assume you mean the asset manager (Platinum Asset Management Ltd – ASX PTM) and not the managed funds/listed investment company?
Platinum Asset Management is due to report its full year result on Friday. I would prefer to wait until I see their results before committing to a firm opinion.
As for other input, according to FN Arena, the broker consensus target price on the stock is $5.54, just 1 cent higher than the closing price yesterday of $5.53. Sentiment is negative, with two neutrals and two sells (no buy recommendations). The brokers have it trading on a multiple of 17.2 times FY18 earnings, and 18.2 times FY19 earnings (with no EPS growth). Pricing pressures are seen as headwinds for the industry.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.