I am guessing you have never had the displeasure of being a customer of theirs on the fund side or the investor side? Worst fund admin I have ever had the misfortune of experiencing. Poor tech, poor customer service, perpetually changing staff roster. I hope others have had a better experience, although nobody that I know who has used them has.
Not a comment on the trade. More a personal musing on their business fraying.
That’s interesting! Hadn’t heard much in the way of customer issues, so that’s news to me. Another thing that moved me about the stock (didn’t mention it in the article) was the fact that Baupost has a position in the company, and while I haven’t personally interacted with the product in a professional environment, I figured one of the worlds more reputable funds would have some knowledge of it.
Thanks for the comment, and appreciate the insight! (I had posted this reply yesterday, but for some reason it went through as a regular comment and not a reply to you.)
Yes, in my experience virtually every valuation metric utilizes forward valuations instead of trailing since the market typically values a stock for where it thinks the business is heading, not where it has been. Completely understand your point re: Munger, however, forward guidance and valuations are important indicators. Not perfect, but they can tell us a lot more about market sentiment towards a company than LTM metrics. Cheers!
I wish I had never heard of the business!
I am guessing you have never had the displeasure of being a customer of theirs on the fund side or the investor side? Worst fund admin I have ever had the misfortune of experiencing. Poor tech, poor customer service, perpetually changing staff roster. I hope others have had a better experience, although nobody that I know who has used them has.
Not a comment on the trade. More a personal musing on their business fraying.
That’s interesting! Hadn’t heard much in the way of customer issues, so that’s news to me. Another thing that moved me about the stock (didn’t mention it in the article) was the fact that Baupost has a position in the company, and while I haven’t personally interacted with the product in a professional environment, I figured one of the worlds more reputable funds would have some knowledge of it.
Thanks for the comment, and appreciate the insight! (I had posted this reply yesterday, but for some reason it went through as a regular comment and not a reply to you.)
Share price is $56 and EPS is $2.50, so a p/e of 22?
Yes I think that’s close on an LTM basis, but on a NTM basis the estimate is closer to 11x. Cheers!
Is that common to consider the forward p/e? That feels like it falls into the realm of Mungers EBITDA = bullshit realm.
Yes, in my experience virtually every valuation metric utilizes forward valuations instead of trailing since the market typically values a stock for where it thinks the business is heading, not where it has been. Completely understand your point re: Munger, however, forward guidance and valuations are important indicators. Not perfect, but they can tell us a lot more about market sentiment towards a company than LTM metrics. Cheers!