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Tomorrow is inflation figures I believe ... reckon someone has leaked the news ... looking for sub 4.8% if so we will get another push I reckon before profit taking.
I started buying and holding late 80s earlier in the year ... average down to 71p including dividends ... way oversold post July ... will look to get average hold sub 70p then stick. 10% yield is happy days.
I may be getting carried away on the heady heights of today but my gut feeling is that even at 80p this would still look good.
I added all the way down to 70p but lost the bottle to carry on buying as sitting on big loss…. Those who bought at 60, well done.
The SP climbs for the last two days.. You couldn't make it up but hey I am not complaining :)
For the brave HFEL ... has taken a spanking with Far East woes ... but returns 12%.
Thanks guys, I am a freelancer so use my Ltd company to add the full £60k to my SIPP without any tax at all. We are cash poor and equity rich. I am completely focussed on stopping work ASAP. Within next 10 years for sure, before I am 60.
Regarding GABI, I wasnt as keen on it, due to some of the debts becoming problems, and those being property based. I didnt know about the continuation vote, so maybe ill reconsider. I am not well researched in GABI so you may feel I am wrong to worry there. I did watch some old presentations.
As I am still building up exposure to investment trusts, I have enough others I wish to buy before GABI. Probably a tad more green energy and some global PE. My largest pos is Next energy solar, which ToD also appears to be in. I think it will break out soon, so im quite over weight in it.
Another channel I like for investment trusts is this one:
https://www.youtube.com/@quoteddata7151
Dartron …. Pension paid off? Put the mortgage money into a SIPP if not doing so already … and claw back some of those stealth taxes being paid.
Thanks for the tip.
No problem Datron - its the Q3 update you are looking for. Share went ex-dividend (1.75p) today hence the drop. Gravis run a few funds - about £3B in total - although currently all valued significantly less. I am also invested in their asset backed fund - GABI - which has also been hammered recently and yields 10%. That business has a lot of short term loans due to be repaid over next three years - and there is a continuation vote in May 2024 where shareholders can vote whether they wish to see that company wind itself up - presumably by paying back capital to shareholders when loans expire rather than reinvest - so it may have a limited shelf life but could deliver some impressive returns. GCP has an average loan life of 10 years so i don't see the same issue arising here - although it is due to receive £300m of repayments in the next four years alone - bearing in mind current market cap. SB
Thanks Silverblade! I am focussing on F250 investment trusts, but this is for my pension. I have around 20% in F250's with yields over 9%. Hopefully when the market takes off, these should do a huge amount of the heavy lifting. Could the yields look like 15 - 20% in 3 or 4 years time? Once the Pension is also paid off (just like the mortgage), I could think about doing something else other than working! Glad you saw my post re mortgage. I have a lot of neglected things to put right now on my property, so personal capex will be the same for another couple of years, but it is a nice feeling.
I shall watch the webinar.
PS, in case anybody doesn't know: this weekly podcast is brilliant for investment trusts (and getting off to sleep).
https://www.youtube.com/@moneymakers4754
Evening Dartron. Try this - although I had to register but perhaps that was for the live on the day option. https://www.graviscapital.com/webinars
Still dividend hunting eh - this is a good one to buy and hold imo. Especially if you've just paid off your mortgage :-D SB
Is there a link for the webinar please? I grabbed a few today, after listening to some older interviews.
I just managed to listen to the webinar and echo your comments ragged. Phil came across well and articulated in some detail the NAV issues and the remedies which GCP are undertaking to resolve - accepting the wider funding market is negatively impacting to a much larger degree than the business can fully resolve. It was interesting to hear that more clarity can be expected when the full year results are published in December. One area which could be explored imo would be linking the dividend to some form of inflation uplift - the current yield is fantastic - but time doesn't stand still. It was also interesting to hear the business articulating it is an equity holder in some of its projects rather than a 'lender' - I assume where they have triggered contractual step in rights on projects in distress or where risks were mounting and their expertise could be brought to bear. Well done on your timing deepjoy - plenty to look forward to in 2024 here. SB
Good post ragged.. I agree 100%. I seemed to be buying the dips for months but in reality it was a few weeks I am now green as I bought most heavily at 61p. Over exposed for sure but in no hurry to sell as ..for me..there are fewer better opportunities than this to keep hold re-invest divis and sleep at night. It as nervy for a while, I kept looking for what I had missed and why the market was mis-pricing this and other ITs so badly. It appear it just did it and the yield is an absolute steal at these prices.
Well, I for one was reassured by the webinar. Reall the Trust is still delivering its mandate, a stable capital performance with bond-like dividend assurance. The NAV has hardly moved down; the successful, and uplift-generating, refinancing of the biomass projects, and stability of the loan repayments (they run 50 separate loans), should reassure people this is not a declining business. Also, they have over 30% of loans maturing over the next four years, which they believe thay can recycle into higher-yielding opportunities. So, you don't buy into this for a 'multibagger', but as soon as interest rates start to come down, people will be made not to want into vehicles like this, currently paying >10% yield. Getting anywhere close to back toward par over the next 18 months gets you a 30-40% capital uplift on top. Yes, I am sitting on a capital loss, but I sleep fine with this and will likely add to our family positions. The business works, and the current beaten down share price is dislocated from that. This and TENT are among the simplest propositions with which to beat inflation, cash ISAs, retail bonds. etc.. Patience will be rewarded on the capital front over time as the fearful UK fund selling down fashion reverses, at least selectively.
Dividend declaration will be tomorrow 2nd Nov with ex dividend date of 9th Nov.
Payment date 5th Dec.
Just a point of clarification - the capital markets day is scheduled for 16 January 2024. GCP will be hosting a webinar on 3 November at 11:00am - day after latest BOE interest rate decision. We should have heard by then on timing for the next interim dividend. SB
Capital markets days 3rd Nov ..things will become clearer then no doubt
Thanks. I normally use the DIV MAX website but there is no declaration date on there but an ex Div date. It would make sense that it would be later than they suggest.
Dec dividend has not been announced yet - will be early next week - will go ex dividend about two weeks later - not next wed which is probably just a publication best guess from previous years. SB
Anyone know when this ? It goes Ex dividend next Wednesday!
I have just bought in and think the tide may be finally turning for GCP.
Huge buys going through today, glad I’ve got in at this ground level and happy to start taking some nice dividends 🙂
Big trade gone through during the day.
That's probably not far off the mark Tagvil - a 9% yield seemed to be sensible with interest rates at 5% and a 4% premium for risk adjusted assets. But fair value in the current market has lost the plot - and shows no sign of any improvement in the near future. GCP have evidenced the prudent valuation principles in their portfolio with the recent biomass transactions and yet we are still approaching a 50% NAV discount and a 12% yield. I have been a buyer in the 90's, 80's, 70' and 60's based on the underlying strength of the assets (short term power price adjustments aside), managements conservative approach and the volume of loans which will be redeemed in the next three years to repay the RCF, continue buybacks, improve capital returns and make selective investments at higher rates of return where available. The markets will hopefully return to some degree of normality in 2024 and GCP should benefit from this in time - in the meantime - c.12% yield at current pricing seems too good to be true.....SB
It is reassuring to see a couple of directors have bought recently:
23-Oct-23 19-Oct-23 Buy Andrew Didham 62.70 GBX 15,949 132,896
23-Oct-23 19-Oct-23 Buy Andrew Didham 62.70 GBX 23,923 132,896
09-Oct-23 06-Oct-23 Buy Alex Yew 65.62 GBX 20,000