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....

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