The abrdn (LSE: ABDN) share price has had one other surprising time, crashing 18.02% within the final week. So is that this the top of the road or an unmissable alternative for some courageous or loopy Idiot to catch this FTSE 250 falling knife?

A phrase of warning. All these courageous or loopy buyers who tried earlier than are counting their fingers. In March 2017, when the fund supervisor was fashioned by the £11bn merger between Customary Life and Aberdeen Asset Administration, abrdn shares traded at 385p. Right now, they’re down to 141p, having misplaced two-thirds of their worth.

Is that this the FTSE 250’s largest cut price?

I do love a cut price and I’ve been conserving an in depth eye on this falling star. Currently, the tempo of descent had slowed. abrdn’s shares are down simply 7.27% over 12 months. That’s modest slippage, by its requirements.

So what’s behind this newest blow? On 24 October, it dissatisfied buyers but once more by revealing additional outflows throughout Q3, significantly in Asia, the place it has outsized publicity.

It wasn’t all dangerous new. abrdn truly posted a 2% improve in property underneath administration to £507bn year-to-date as market sentiment picked up and its acquisition of interactive investor turned out properly.

Yr-to-date internet outflows of £4.5bn are notably decrease than final yr’s £13.5bn. I assume that’s progress of kinds.

Group CEO Jason Windsor is battling to stem the movement by strategic re-pricing, know-how funding and repair enhancements. However he gained’t flip issues round in a single day

I believe markets have been powerful on the inventory. Give a canine a nasty identify, and all that. First-half outcomes, printed in August, confirmed promise, though that solely made Q3 extra disappointing.

Given its troubles, I believed abrdn is perhaps cheaper. A price-to-earnings ratio of 10.32 is okay. Nevertheless, the price-to-sales ratio of 1.8 suggests buyers should pay 180p for each £1 of gross sales, which feels steep.

That’s an excellent yield. So what’s the catch?

The 15 analysts providing one-year share price forecasts have set a median goal of 160.4p. If appropriate, that may counsel 13.76% progress from right here. Throw within the bumper 10.35% trailing dividend yield, and the entire return can be heading in direction of 25%. In fact, dealer predictions can’t be relied on. Nor can dividends.

So is the dividend sustainable? That sky-high revenue is the only comfort for its long-suffering investor base so the board will solely lower in extremis. Nevertheless, it has frozen the payout at 14.6p per share for the reason that pandemic, so I’m not anticipating a lot progress for some time but. Let’s see what the charts say.

Chart by TradingView

It’s a dangerous however probably rewarding alternative, for many who suppose inventory markets are heading for brighter instances. A rising tide might float all boats, even this rocky one.

abrdn isn’t the one wealth supervisor struggling. Loads of UK monetary companies corporations have ultra-high yields and modest valuations right this moment. Though few have suffered the identical scale of meltdown.

I’m sorely tempted to purchase. Nevertheless, I stated that three months in the past too, and I’m glad I didn’t. I’m in need of prepared money proper now and can most likely resist once more. Sooner or later, some courageous or loopy Idiot might make a killing on this inventory. But it surely most likely gained’t be me.