Thoughts on Prudential

Prudential announced that they will decide to either sell their stake or go on float. Should you buy or sell now?

I am not sure anyone can answer you this, otherwise it is kind of advice.

Here’s my personal thoughts.

The whole thing comes after Third Point, the activist hedge fund led by Dan Loeb, built a shareholding in the company, and pushed for separating the Asian and U.S. parts of the businesses. Prudential Asia has had some good performance, e.g. its return on equity has surpassed 25% for ten years or so (I just wrote about the importance of fundamentals and figures eg ROCE). It’s been driven by the rise of the Asian middle class.

In my mind, it makes sense, but how it will be executed, is another question. Do your own research and look at the numbers. Read through some good sources like the FT

https://www.ft.com/content/8bb74576-5fa6-11ea-b0ab-339c2307bcd4