Q: Can you comment on their earnings release? Does this company constantly rely on new $ coming in to generate fees and earnings? If you like this company, what would be an attractive entry point? Thank you
5i Research Answer:
We like BAM a lot, and would see $52 as quite attractive. Fees are a big part of its business, but as assets grow it earns more fees even if no new money came in. It is very well-managed and we like its asset mix and regular cash flow and dividend increases. EPS of 30c did miss estimates of 35c; Revenue of $916M also missed. But cash flow remains strong and assets are now near $1 Trillion. Fee-related earnings rose to 36c from 34c.