Schroders are our equivalent of Quindell,s Tiger Global who have ravaged the share price there by shorting through mysterious faceless companies hidden in the Cayman Islands.Must be the most talked about share on LSE site with over 100 pages of comments every day.Except of course they havent shorted The good point of course for long term investors with handy cash is that they can buy TEF relatively cheaply on the minor dips knowing at some stage Schroders share selling will come to an end and the barrier removed maybe after this week!
There are similar stories being told across some of the other companies in Schroders dynamic UK small company .fund Hansteen,Vertu ,Pendragon are other examples any rises keep getting flattened This fund which has performed admirably has had a howler this year with Stocks, Xaar , and Law and Bonar tanking. Shareholders have voted with their feet hence the reopening of this closed fund.Its clear that the baalance between reentrants and redemptions is still out of kilter They have chosen shares to sell like Telford Homes to meet redemptions because of the demand and small effect on current prices rather than any strategy - a sort of self fulfilling prophecy
SP predictions are indeed a folly but fun to watch people try....just trying to stimulate some conversation.Never have really understood why most folks focus on price rather than value.The directors spend their time and effort on increasing the value of the business and very successfully,so it is not possible that,in time,the market will not price that in.Short term antics of larger shareholders may affect the market cap of the business but do not make one iota of difference to the value of the company,do they.Countless times you read postings stating that it is never wrong to take a profit,well actually it is sometimes.There are very few investors on this planet that make a long term profit by dancing in an out of differrent stocks and asset classes.If we invest in what we know and understand and demonstrate a sensible level of patience,the outcome should be favourable.How anyone can invest in supermarkets,banks or oil companies beats me,even the directors dont fully know what is going on in their own back yard.You and a few other posters here really,really know this business and that is intelligent investing.It is not if here,but when..
Sg22, top, danger, sain, smud, terr
Sg2234, top, danger, sain, smud, terr fantastic detective work. Nice to know the reasons why we have behaved so erratically since January. My hat off to you all for digging out this gem. Schroder “trimming” 24% makes perfect sense if they are a hard frozen fund and have dropped in capital from 1.3bn to 675m. In fact TEF is now a significantly larger percentage of their remaining capital under management than it was in January. A proportional reduction would have been a full 50% -so one can say the fund reduced TEF very reluctantly. That said it was our bad luck to have a fund with 14% of our stock that had a hard freeze since January 2014. Blazingly obvious why we have flat lined for this year. In some ways bad management for peelers to have such an unstable fund as such a high percentage of stock. Find a buyer for the shares they want to reduce and get them out. I wish I was not leveraged but I am so I have to watch the short term movements for signs of a black swan event. All the potential black swan events are macro at the moment. Euro crash, war in the south china sea, etc. At some point I’ll trim back to a fully paid for position and sit back -as terr keeps saying- and wait for my 10 quid 4 years out or so -but for me no trimming at anything near 3.60. I think that is now a ridiculous price and takes no account of TEF future growth and locked in future profit. I'll take my chances of a black swan event that triggers margin calls at that level.
Terrace et al
Terrace You are a contrarian asking us to stick the tail on the SP donkey when you usually encourage your fellow posters to ignore the day to day machinations of the market and concentrate our thoughts on the performance of the company .I thought you would be more likely to have a round of guessing the H1 figures. Since I have put an early maker down in that department before the start of the official competion I reserve my right to change my guesstimate!! "Highly" rather than "wildly" optimistic one.That sounds more forgiving! .Although Ii am happy with the profits emanating from the completions I have been fairly light on my treatment of costs so I am going to say £16.9m and thats it now carved in stone
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