ADN

I’m searching for value opportunities and I came across ADN, which is the ticker for Aberdeen Asset Management. Anyone following the stock?

Pros:

Specialized house in Em. Markets with a strong brand

Healthy financials

Attractive dividend (around 8% yield) that management has confirmed to keep paying out and increase

Excessive punishment in my opinion that has made the stock to trade at reasonable multiples, although not too cheap.

Starting to bring revenues from other businesses such as alternatives in the US, by doing decent acquisitions at reasonable prices.

Cons:

Some members of the management have sold shares recently

An investment director has left the company just a few days ago, and people turnover on the decision making side of the business is not desirable at this moment I think.

If fears continues about China’s slowdown impact on emerging markets, outflows will persist and the dividend could go away.

Not only there have been outflows, but also ADN has made wrong bets, hence underperforming its peers. I don’t expect this trend to continue indefinitely, though.

Any views?

Cheers