Question: I bought Platinum Asset Management at $6 as recommended in view of falling Australian dollar. I am an investor, not usually a trader, but in view of their decline over last few days should one hang in there? Presumably the decline reflects disappointment with their half-yearly report.
Answer (By Paul Rickard): Platinum Asset Management is now trading at $8.21 – so you have had a good gain.
Yes, the fall from a high of $9.30 reflect disappointment with earnings result, and subsequent broker downgrades.
According to FN Arena, broker sentiment on Platinum Asset Management is negative at -0.3 (scale -1.0 is most negative to +1.0 most positive), with a consensus target price of $8.09.
Question 2: Do you think Metcash, bought in the mid $3’s is worth another go to average cost back?
Answer 2 (By Paul Rickard): As I am not really a huge fan of averaging down (particularly on a stock that is a long way south), I would say no.
In regards to the brokers, they are arguably a little more positive. Although sentiment is negative at -0.4 (range -1.0 to +1.0), their consensus target price of $2.23 is almost 50% higher than the current market price.
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