Shares in asset management company Miton (LSE: MGR) have risen by 7.5% today after the release of an upbeat trading update. The company was able to grow assets under management from £2.05bn at the start of 2015 to £2.78bn by the end of the year, with inflows into equity funds and investment trusts more than offsetting outflows in the multi-asset space.
In fact, Miton recorded net inflows of £436m for the year, with positive investment performance also contributing £278m to its increase in assets under management. And while the company states that it’s not immune from market headwinds, it believes it’s in a relatively strong position to take advantage of the opportunities that are likely to arise in a volatile market.
With Miton forecast to increase its earnings by 57% in 2016, its current price-to-earnings (P/E) ratio of 24.4 appears to indicate that there’s capital gain potential ahead. While a relatively small company and a risky buy, Miton could nevertheless prove to be a sound investment for the long haul.
On the up
Also making share price gains today is CPP Group (LSE: CPP), with the credit card insurer being up 10% despite releasing no significant news flow. Clearly, its shares are relatively volatile but as a business, CPP appears to be moving in the right direction after a challenging period.
In fact, its most recent half-year results highlighted that CPP is gradually turning its performance around. For example, it secured new equity funding and restructured the group’s debt in the first half of the year and this provides CPP with a more stable base through which to potentially improve profitability in the full year. This is being aided further by ongoing cost control which, at the halfway point of the year, contributed to an underlying operating profit of £2.2m versus breakeven in the previous year’s comparable period.
With CPP’s shares having risen by 93% in the last six months, investors appear to be bullish regarding its future. While it’s relatively high-risk, for long-term investors it could prove to be worth a closer look.
Having your cake?
Meanwhile, shares in Patisserie Holdings (LSE: CAKE) have slumped by over 4% today despite there being no news flow released by the company. A possible reason for the fall is a cautious outlook statement made by sector peer Restaurant Group. Its optimism for 2016 has regressed due to uncertainty regarding the EU referendum, the global economic outlook and recent data from consumer-focused businesses.
Clearly, the restaurant industry is benefitting from a rise in disposable incomes in real terms and looking ahead, Patisserie Holdings is forecast to post an increase in its bottom line of 24% in the current financial year. With its shares trading on a price-to-earnings growth (PEG) ratio of just 1.4, they appear to offer good value for money. As such, and while volatility may be high in the coming months, Patisserie Holdings could continue the rise that has seen its share price soar by 42% in the last year.
