Pengana, Wilson and Tyndall agree: New Media stocks are priced for perfection

Pengana, Wilson and Tyndall agree: New Media stocks are priced for perfection. Fund managers are moving their money away from new media stocks such as Seek, Carsales.com and REA Group with rapid share price growth pushing valuations beyond the comfort zone. Wilson Asset Management's CIO, Chris Stott says that ''new media stocks are trading multiples that we haven't seen for many years, if ever. We think this is a reflection of the lack of growth in the Australian market.'' Tyndall Portfolio Manager Michael Maughan concurs, saying ''the multiples that the new media stocks are trading on are pretty racy. It would appear that their domestic businesses are reasonably mature, and especially in the case of Seek, quite cyclical.'' Pengana fund manager Rhett Kessler warns investors ''many of these companies certainly appear to be priced for perfection and therefore if they disappoint they have a long way to fall.'' (VIEW LINK)