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Biskit - the language is deliberately not printed in 'plain English' because that way the investment industry can push laypersons into being hands off investors and therefore forever piping a proportion of 'their investment gains' into the pockets of fund managers and their staffers who get to drive around in fancy cars, frequent them exclusive clubs with their supply of marching powder in hand, and jet the globe of luxury breaks.
" Sounds like Shorting then. P.c."
well it is a different form of trying to benefit/have exposure to a share , through a contract, whilst not having to actually buy them .... shorting, CFDs, Options , cash swaps etc
"..they have 0.4% of the shares "
Oh, apologies, I missed point 11right towards the bottom of the page... ...which says these shares are a result of borrowing them ...so they have borrowed them, not bought them...by the looks of things
Sounds like Shorting then. P.c.
I clearly don't understand them. I was thinking in terms of clarity, why it can't say "Acquisition" or "Disposal" instead of "An acquisition or disposal of voting rights".
" could it be that someone has put up their BT shares as security with them for a cash loan."
no
It is just a contract between Morgan Stanley who does not have the shares, with someone who does have the shares ...such as an Institutional Investor
Both sides seek to gain from the contract ...often the II will seek to hedge their Long position without having to sell shares or lose Voting Rights
Morgan Stanley will seek to have exposure to the shares, say through the performance of the shares, without having to buy them
I don't know what it means either, could it be that someone has put up their BT shares as security with them for a cash loan.
" Wish TR1s were clearer."
They become clearer, once you start to understand them .... just watch out for Options, Cash Swaps, etc ...that are not ownership of shares, at that point ....and Investment banks like JPM and Morgan Stanley etc ..use them A LOT
Either way it's a poke in the eye for the short's.
Thanks for the info. Useful. Wish TR1s were clearer.
" They previously had 6.6% of available shares, now increased the 7.09%."
No.... they have 0.4% of the shares ( which has increased since the last notification)
....the rest are Compound Options and other Derivatives such as cash equity swaps gives them exposure to the shares without actually having to own them
https://www.investopedia.com/terms/c/compoundoption.asp
https://www.vintti.com/blog/what-is-an-equity-swap/
I think so
Yes, that's how I read it, too. They previously had 6.6% of available shares, now increased the 7.09%.
Just tried to understand what the RNS means quoting Morgan Stanley increasing voting rights. I think it means they have confidence in BT and are buying more shares. Could that be right?
Hopefully she’s a dividend maintainer
Who is Alison Kirkby?
This BTA Board needs putting out to hades
Guessing this hasn’t recovered until we get confirmation on the dividend in may.
While we expect it to be maintained and not cut, I think we can rule out an increase for a 3rd year. Despite their progressive dividend policy
I assume this dividend cut thread is due to Uber Bear of Switzerland (UBS)? Polo Tang has had it in for BT for years.
In 2021 they said:
"The analysts said they think the pension deficit is likely to cap the dividend at 4p per share, versus the consensus estimate of 7.1p"
https://www.proactiveinvestors.co.uk/companies/news/938589/sell-bt-says-ubs-on-risks-from-competiton-pension-deficit-and-spectrum-costs-938589.html
Amazingly he either appears to move the price, or has an uncanny knack of predicting falls in the price, but his reasons for explaining his position rarely come to pass.
The one area I think will prove super safe and unsurprisingly robust as the UK economy sinks to ever lower depths is people's determination to maintain their facebook/netflix/NOW/sports etc connections - this is best demonstrated by flicking the fuse off for the whole house and observing the immediate following reaction displayed by your fellow householders ;-)
Is it beyond the realms of possibility that they are talking if dividends cuts because they are shorting?
Chicken egg. Egg chicken?
I happen to think BT's service offerings are decent value too - I mean what can you buy for circa £20-40 nowadays?.. - People like to have a good ole complain but for the majority of homes, businesses + individuals BT's doing a decent job these days. Compared to water/trains/public transport and other backbone services BT is getting unjustified critique imo - I recall well when BT took over EE and I was very worried about slippage of standards from when Orange previously established EE as they were market leads on service & quality... but my scepticism/cynicism was unwarranted and BT have done far better than I ever expected.
@Savage
That's my thinking too - fabulously defensive stock that is seriously undervalued and massively below the sun of its parts.
BT trading at £1.05 per share is lower (when you factor in the dividends paid since resumption after COVID) than the September 2020 price of 97p IE: pre vaccine prices.
Glad you are also bullish - I'll keep adding then and ignore the noise!
I've been adding to my stake too Trenners - I'm not so certain a hefty divi cut will occur, a trimming perhaps but I think BT can afford to maintain fairly close to current levels - supported by the CPI+3.9 price hikes and sustained demand for data, telecom + mobile services. BT got ahead of the curve when it delivered cuts to the office real estate and the FTTP & 5G rollouts continue at pace. BT is a solid defensive stock imo.
... and if so how far can this fall?
I'm continuing to add BT as I see the value in the component parts of the business ... but I've heard a few analysts suggest the dividend isn't sustainable and some have mischievously suggested a dividend cut will be announced soon.
What's the view of the long term holders here as I know the traders are talking about shorting BT?