Praemium Share Price (ASX:PPS) Soars 10%, on Confident Quarterly Update

The Praemium Ltd [ASX:PPS] share price skyrocketed up by 10% in early morning trading yesterday, pocketing at a pretty 44.5 cents a share.

This movement is likely a result of the self-proclaimed ‘next generation investment platform’ releasing its June 2019 quarterly update yesterday.

From Melbourne, the announcement covered the company’s results following its first ever quarter as an integrated managed accounts platform.

Did Praemium meet their objectives? According to CEO Michael Ohanessian, Praemium have benefited excellently from the upgrade to a full-service integrated managed accounts platform. He called it an ‘important milestone’ for the company and said that it ‘significantly expands [the company’s] addressable market’.

Key achievements over the quarter include record quarterly gross inflows across Australian and International markets of $903 million, plus a total FUA (Funds Under Administration) figure of $16.1 billion. This is attributed in part to the inclusion of the VMA Administration Service (VMAAS) for the first time.

Praemium’s sales and development figures prove to be positive

Figures elsewhere in Praemium’s sales and development updates also proved to be highly positive. On top of this, the company won the Innovation Award for their Integrated Management Account platform at the IMAP Awards last month. But business prestige aside, it’s clear that with Praemium, the winning ticket is the service itself.

Ohanessian spoke glowingly of Praemium’s differentiation from others on the market:

‘…Recent financial press coverage has suggested that some Australian investment platforms are providing low or negative interest rates on platform cash. Praemium has always ensured that the pricing of our managed accounts solutions is competitive for advisers and their clients. As such, Praemium SMA and SuperSMA continue to deliver an attractive interest rate net of fees despite a reducing RBA rate. We also offer highly competitive brokerage rates and will continue to provide clients the benefits that accrue from the aggregation and netting of trades. In the June quarter, for instance, the netting benefit represented an average 20% reduction in brokerage costs for investors.’

On the back of this announcement, investors will be pleased to see the company scaling at such a healthy rate…

Is Praemium a good investment opportunity?

There’s no doubt Praemium Ltd [ASX:PPS] is a fast-growing stock with a competitive edge.

However, investors who want a piece of the pie would need to time a buy-in well. They might want to board the boat before it sails, so to speak, to get a bounteous share of the spoils…

Especially if the stock continues to perform like this.

Regards,

Ryan Dinse

For Money Morning

PS: Exclusive Investor Report – ‘Three Fintechs Breaking Up the Banks’. Click here to learn more.


Ryan Dinse is an Editor at Money Morning. He has worked in finance and investing for the past two decades as a financial planner, senior credit analyst, equity trader and fintech entrepreneur. With an academic background in economics, he believes that the key to making good investments is investing appropriately at each stage of the economic cycle. Different market conditions provide different opportunities. Ryan combines fundamental, technical and economic analysis with the goal of making sure you are in the right investments at the right time.  


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