Momentum against boutique financial stocks

Financial services, diversified financials, boutique financial stocks. Call them what you want, but these stocks are fast becoming a casualty of the revaluation of finance stocks even though some have outperformed forecasts.

Austock Group, listed in December 2007 after the market shake-up had already been headline news for months, last week exceeded prospectus forecasts by three per cent with an $8.8 million net profit after tax, 75 per cent higher than the previous corresponding period.

Revenue was up 43 per cent on the corresponding period, but fell slightly short of the $44.4 million prospectus forecast, with earnings per share ten per cent higher than the prospectus forecast at 7.5 cents.

Funds under management now exceed $1.3 billion and a two cent a share interim dividend was declared.

The market doesn't like this story.

Austock shares hit an all-time low of $1.38 last week closing Friday at $1.40, down around 40 per cent from the $2.25 achieved shortly after listing, valuing the company at $168 million.

Tollhurst Group Limited interim reported NPAT up 23 per cent to $2.5 million, revenue up 40 per cent to $41 million with EBITDA per share up 24 per cent to 3.93 cents. A reasonable result.

Basic earnings per share, though, fell to 1.82 cents from 1.85 cents for the corresponding period.

Shares last traded at 31 cents, less than half the value of a year ago with 12-month highs of 65 cents, and only marginally higher than yearly 31 cent lows, with a market capitalisation of $52 million.

Wilson HTM Investment Group Limited recorded a NPAT increase of 54 per cent to $9.2 million, on the back of a 40 per cent revenue increase to $75.1 million.

Earnings per share were up a quarter to 9.6 cents with a three-cent dividend, thirty per cent franked.

Since listing in July 2007 the share price peaked at $4.60, recently trading off historical lows of $2.33 to last trade at $2.58, providing a market capitalisation around a quarter of a billion dollars.

Centrepoint Alliance Limited business volumes have been in line with forecast. The problem is the forecast was ten per cent below prior period levels, and the stock deserves the share price hit.

The weak results include revenue down three per cent to $24.7 million, with no dividend declared, compared to the previous 1.5 cents.

Net profit for the period attributable to members was up 18 per cent to $1.9 million.

The share price has trended south for the last eighteen months from around $1.40 as investors have become disenchanted with the stock.

Shares last traded at 30 cents, one cent up on twelve-month lows but a long way from twelve-month highs of $1.00. The market capitalisation is $28 million.