Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Sprott Inc.: Shrinking AUM Figures Mask Underlying Strength

This article covers stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

Shares of asset managers can be tricky to value. This is the case because they can have volatile AUM figures that distort the underlying fundamentals of their businesses. For example fellow author Syed Saqib of Netwall recently published an article in which he argues that Financial Engines' (NASDAQ:FNGN) revenue and profit figures were distorted by a rising stock market. The sharp rise in stocks over the past year led to a concomitant rise in the company's AUM, which then led to an acceleration in revenue and profit growth....

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details