I relistened to the conference call today as I didn’t get to the end of the call last week.
PAC management have improved their capital allocation model. They are now considering buy backs with surplus capital.
Historically they were only considering reinvesting proceeds. Given the gap in NAV/fair value compared to share price this is an obvious benchmark between whether management buy back shares and/or make new investments.
If we assume NAV/fair value is now $12+ due to GQG share price increases, PAC would need an approximate 20% return to invest in a new boutique. This assumes share price of $10.
In terms of repaying debt, there are penalties if it is repaid early. These expire in 18 months from now. Repaying debt will be on table then.
The takeover activity seems to have killed off PAC managing other funds to invest in boutiques, although Paul did have a meeting with a potential large investor in this space. Fingers crossed takeover hasn’t completely killed this off. PAC need to have this to justify the distribution teams existence. They are currently a cost weighing down earnings.
Best of Luck
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Last
$10.07 |
Change
0.070(0.70%) |
Mkt cap ! $519.3M | |||
| Open | High | Low | Value | Volume |
| $10.06 | $10.15 | $9.94 | $189.8K | 18.86K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 342 | $10.07 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $10.09 | 63 | 1 |
View Market Depth
| Last trade - 16.10pm 24/05/2024 (20 minute delay) ? |
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Last
$10.10 |
Change
0.070 ( 0.99 %) |
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| Open | High | Low | Volume | ||
| $10.19 | $10.19 | $9.95 | 10378 | ||
| Last updated 15.59pm 24/05/2024 ? | |||||
| PAC (ASX) Chart |