High net-worth customers resulted in winning results for today’s buy recommendation and a drop in price triggers a sell on VIPS.
Buy: Noah Holdings (NOAH)
from Cabot China & Emerging Markets Report
Noah Holdings (NOAH) reported a great first quarter, which isn’t surprising given the bull market in Chinese shares. Revenues rose 43%, driven by the wealth management division, which saw revenues rise 33% and make up about three-quarters of all revenues. In that segment, registered clients rose 35%, active clients rose 62% and the value of wealth management products was up 64%.
Moreover, management stated that 2015 should be solid (analysts see earnings up 28% to $1.76 per share). The stock has pulled back a bit, but the selling has been normal and the power of the prior advance tells us this dip should lead to higher prices. If you buy (or already own some), be prepared for volatility. BUY.
Paul Goodwin, Cabot China & Emerging Markets Report, www.cabot.net, 978-745-5532, May 21, 2015