George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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yeah, i know what you mean, i was looking at this one mainly with the mid-long term in mind, and the dividend as well, now i have the funds, but am seriously doubting this option now
Well let's hope that I'm wrong ... one thing that offers some hope is that the BoD have called fro an EGM on 23 Feb to alter the LTIP (Long Term Initiative Plan). If the changes make the plan effectively neutral to the effects I mentioned then they are at least re-levelling the playing field. On a personal level though I'm not at all pleased to see the dividend decrease as it was for the long-term income generation side of things that I valued these shares ... that may all change as we start to understand what the changes actually mean in terms of numbers. Fingers crossed. Mike
Thanks Adam, if you are right, seems i was right to be skeptical of the buy back scheme and reduced dividends
Artifically increasing the EPS by buying back your own shares is the usual underhand way that this scheme works ... depriving the shareholders of funds and virtually guaranteeing that the bonus is paid. But here I believe that the bonus scheme is based on 'Return on Capital Employed' ... by reducing the capital base of the company (by buying and cancelling shares) the same return looks better and there is an increased chance that the bonus will be paid -- same result as before but a slightly different mechanism. And the bonus here is very, very significant ... I seem to recall the press saying that it was £280 million split between four executives? As I say, with bonuses that large triggered on somthing that might be manipulated via a share buyback, the BoD may have their interests at heart rather than ours. I'm also concerned at the size of the buyback that is in progress ... £2-3 million per day ... Mike
Dividend vs. Share Buy back is an easy comparison .... it compares 100% certainty of payment of dividend against an almost 100% guarantee of executive bonus payment -- coupled with a hope of increased share price and a possibly increased (but probably decreased) dividend payment. Overall I am against share buy backs ... they are generally a sign of an inward looking board that are more interested in protecting/promoting their own bonuses than transferring money to their share holders. In short they may have their interests at heart rather than ours. Mike
it would make the largest housebuilder in the UK and generates a lot of synergies. it would be very positive IMO.
curious regarding the dividend vs share buy back scheme. Trying to work out if i want to invest in this one, but having been watching it for a while, i think i'll need to invest more than i usually do in a single share, to make it worth while, i am slightly kicking myself, because i know when it was in a slump, i didn't have the funds to invest, and now it's recovered to a point where i would have had a nice cushion, so now i'm back to the stage of trying to work out a good entry price, which given the current political climate...... a task which seems considerably harder !!
I am assuming that the latest RNS is detailing part of the company's share buy-back plans (25.5k shares @ average of £28.78). If it is part of the plan to put a floor under the share price, are we happy that it seems to have kicked in at a reasonably high level and thus keeps the SP higher, or do we think that the Company has had better opportunities to buy more shares for the same amount of cash? I'm still learning a lot of the realities of direct investing, so I'd welcome hearing different views and thoughts on this. Personally, I think that if I was spending my own cash, I'd have bought in lower, but it it puts a higher floor in place, then as a holder I'm very happy - I'm just trying to reconcile the 2 thoughts.
2nd dec. its up 10% or so since then in USD terms so a bit more in GBP. might rise more but the USD price is subject to USDZAR x oil x sa politics
same story for me on BKG unfortunately - took 10/11% and cashed out. this strategy has served me well over the last 18 months or so. In a number of cases i have missed substantial rises but overall it looks like i will return 70-80% this tax year. I acknowledge many have done better but more have done worse. Did you ever look at the Sasol ADR tip i gave?
@Liberalman..BRWM was another that i got out of way too early, bought in at 220ish, took 20% or so then cashed out. felt very smart at the time. not looking so smart now though. Looking at some of your recent posts it looks like you are on a very good run over the last year or 2. Whats your guess on GBPUSD? 1.216 at the moment. Higher or lower in 6 / 12 / 24months?
Hi Liberalman - am up 20% since your last tip on BKG. Got a few more funds to invest. Where do you like at the moment? I know things go up and down but anyone that gets it right once you never know might get it right again :) Thanks for any thoughts.
statement today is not a good indicator for house builders
I'm not a fan of share buy backs. There are very few occassions when they have actually increased value for small share holders. But to be fare to this BoD the RNS does give a suggestion that the actual money distributed will be absolute and hence the dividend will rise as shares are cancelled. Overall though, I'd prefer to be paid the dividends and then do my own buy back by reinvesting them! Mike
If you go to the RNS section and read the Half Year report on 2nd Dec it is all set out in there. Brief version is that the return of cash to shareholders will be kept the same (at £2/share/year), but that money maybe used as share buybacks instead of/ as well as straight cash dividend payments, depending on what the BoD sees as providing better value to shareholders. It also set out a timetable that any dividend payments will be declared in February and August and made in March/ September of each year - buy backs can be made at any point in the 6 months (from my reading). Very brief version - any dividend will be declared in February 17, paid in March 17, but may be less in cash terms than previous years if replaced by buy backs.
Anyone got any idea about the dividend in Berkeley's? It was on December 16th last year but I so far this year. They did state that it would be the same annual divi as normal but so far no cigar.
standard.co.uk/news/london/sales-of-luxury-homes-slump-in-london-due-to-stamp-duty-and-brexit-a3414476.html
with these shares a couple of weeks back. Looks like there on a roll.....
Ditto here Liberalman. Saw your tip for this on HSBA, now do we hold or take a nice little gain? Thanks again & GL.
Another good call by you sir !! --- Saw your post over on Barcs last sunday , so my apologies for not replying sooner !!. Tied up heavily in ITV & ETO atm and Gold & Dax trading but did have enough to get into BKG for just 1200 shares at 2512p so more than happy with the outcome today ----- Thanks for the tip --- Barcs. board not interesting me that much either atm ---, a few of yesterdays posts from Jackbowers & BarbedWK .over there were removed today , i see. !! GL sir ----
Blimey I tip my Tin Hat you sir :-) I may have to start falling your Tips in the future :-) Well Done :-)
10% is enough for me. i will leave the rest of you to make the big bucks. Liberalman - cheers mate! i would never have known without you. Have a look at SASOL ADR. Energy player in South Africa that i believe is undervalued. i confess i though they were undervalued when they were 5% higher than they are now so there is the possibility the market knows something i don't. as always dyor.
I don't think Pidgeley is that machiavellian (spelling!) tbh. Don't forget they've got some other excellent people in that business - Perrin being one of them. They've got an excellent land bank, they're not buying land at the moment (but are just biding their time), build an excellent product - they're a good outfit imo. It's a quality company buying land within the M25. I'd rather be within the M25 than out of it I'm afraid (sorry if that offends people).
Not good and stinks of a mechanism to allow Tony Pidgeley to cash out now that he is nearing retirement. This is near to if not the peak of market and he knows it and it would cause panic if he sold, but with a buy back he can manipulate the price he gets. I might be wrong.