The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
You should have punched the smug self serving c**t
$ not £
26% done as of close yesterday
The i
From ADVFN Walleye reduced their short yesterday by 200,000 shares?
They never bought any yesterday
I estimate we’ve spent about a tenth of the £10 million we’re supposed to be spending on buybacks, with a pitiful 150k bought yesterday, what’s the hold up?
Z was hired as facilitator to GKP - no doubt at insistance of his mate Hawarami, the Kurdistan minister of oil (who has a bolthole mansion on the Thames at Henley).
Both are seriously wealthy of course.
Z trousered several £million, for his tireless efforts as counsel to GKP.
On his ascension to High Office in Cameron’s govnt., he withdrew his services from GKP.
He was sorely missed.
Bloody old phone 🙄 He can't remember, and has accidentally deleted all his WhatsApp messages 🤷🏻♂️
He can't remember and has acci
Saw Nadhim Zahawi walking down Victoria Street, London , yesterday ...wasn't he part of GKP , a while ago ?
Redirect the funds wasted in the buybacks fiasco into taking the rulers to the ICC for recovery of the growing mountain of debts we are legally entitled to.
Accountability as to where the funds which should have paid our debts ended up - will come out in the wash.
Corruption may be behind this farce - who knows !?
I'm not going to debate this with you V, because I've not had your experience and haven't suffered your pain.
I guess what I'm asking of you is that you try and look forward rather than back.
History can only teach us so much. And management change has clearly benefited GKP.
Tough call for you I understand.
Don't know what else to say really...apart from that I have absolutely no intention to offend.
I just see it as I see it.
"You’re really hung up about the delinquent debt, aren’t you?"
No I am not as I do realise it may not be recovered, just like the $x00 m that were never recovered during the ISIS years, which caused the 2016 restructuring. All I am saying that substantial further investment should be conditioned on the recovery of the past arrears. The company must stop unnecessarily hoarding cash in anticipation, or even crazier by going into debt again to fund such investments.
Best Regards ValueS
You’re really hung up about the delinquent debt, aren’t you?
I get that. So am I.
But I reckon you need to get over that in the context of GKP’s future positioning.
And you’re not addressing the more pressing issue…how does GKP navigate its future?
And sure as sh*t it mustn’t rest on the recovery of $151m delinquent debt because that is now in the ether and may or may not be recovered, either in whole or in part.
Certainly it definitely cannot be a part of the recovery plan because the recovery of that money must not be relied upon in any future strategic planning. Who knows how that will pan out? Better to treat it as a bonus that should be pursued with vigour.
There’s a new model in Town which doesn’t rely on the KRG honouring their obligations.
Because there’s a serious business to run and JH has to play what’s in front of him.
He mustn’t be distracted by delinquent debt although he certainly has a duty to drill down on it. These issues are not mutually antagonistic. But he needs to focus on the next phase in GKP’s development.
And as a self-funding, debt free GKP, he’s got the capability to press on because he’s got a two-tier strategic approach.
Once again, it’s the benefit of being a debt free business thanks to previous shareholder sacrifices…
I know you’re a LTH, so these issues are difficult given what you’ve been through.
Nevertheless GKP’s position is clear and I believe we should back it.
SC.
"starting a intensive Capex program, would cut the legs off the company"
Not if the $151 m of arrears paid. If no payment, then no "intensive Capex program". The arrears more than 15x the ongoing buyback program of a pittiful $10m which is entirely funded by a month or two of FCF which is also ongoing!
‘Buybacks are simply a distribution of cash. Nothing more. Nothing less.’
PUTUP regards buybacks as just a technical mechanism for returning capital to shareholders…nothing more, nothing less.
And he’s wrong.
If GKP think the Market is seriously undervaluing the Company then they should invest in it on our behalf. The CANCELLATION effect is to concentrate minds.
A dwindling share base in a forward looking business with a two tier strategic approach will do that for the investment community.
So the Board’s Market pitch is simply this, put in my terms:-
“We believe in GKP and we’re going to show it via buybacks for cancellation. Also we’re going to carry on doing it using our new found FCF which is sustainable with or without the structures on which the GKP business original model was built.
Now, in this new regime, cancellation is King. The choice is whether, as an investment community, you want to play or pass. Because from now on, the Common Share base will shrink. And we will continue to press our point by restricting your ability to buy at current prices. We are making significant returns in the current climate that we find ourselves in.
What do you want to do? Because this is our new trajectory”.
I also find it quite impressive that Peel Hunt are managing the buyback so as not to pay a premium on the market price where possible…as a consequence there will some volitivity in the sp until the buyback is completed.
Put simply this what serious management looks like.
Posters like truthsayer have neither the experience nor the intelligence to understand this.
Btw, intelligent posts Nobull.
No surprise that we didn’t read a word from Itzajealous person until the price dropped yesterday, probably because some recent buyers were taking profits ( and unbeknown to us) the company didn’t make a single buyback trade. Does Itzadimbo remember It’z own “I’m clever” comments when our shares were 110 / 120 recently and The clever dick said sell (you Fools ) because your shares are going down to 90p. soon. Itzanothing better to do in life must have lots of valueless time to spare to troll people that It doesn’t know.
Seriously. If you believe that the pipeline will not be opening in the near future at the time of the AGM update statement a share price in the 150 / 60 range, might be a sell opportunity with the view to repurchase if they drop back to the 130s.
Dealing GKP is interesting to say the least.
No share buy backs yesterday 🤷🏻♂️
Of Company Buybacks, supporting the upward rise in the Sp, £1.50 will be broken soon enough, imo
After a stock goes ex-dividend, the share price typically drops by the amount of the dividend paid to reflect the fact that new shareholders are not entitled to that payment.
"Buybacks are simply a distribution of cash. Nothing more. Nothing less. "
Still suffering from buyback syphilis, a disease where the sufferer is confused by the accounting treatment of buybacks, the problem being the disease is highly infectious and can even spread to intelligent posters. Yes, they are a distribution, but there is more to it than that, as you know damn well: the cancelled shares are an exchange of cash for an expected income stream that has a present value. If the cash expended is less than the present value, the buyback is value-accretive; if it is more, then it is value-destructive; if they are the same, then you are correct: it is a value-neutral distribution. Your other posts are good, but you have a problem grasping this point. The problem of the expected return not turning out to be the same of the actual return is a different one.
No, it does not always fall by divi amount, but we did not get divi amount...
If more divis are to come, and their is confidence, then it holds.
Ie
Zero confidence in this cxxp house
What I don't like about the buybacks is the potential reduction in operational flexibility resulting from reduced capital buffer.
All the "self-financing" scenarios rely on a good PoO, whether on international markets or locally, and until the future SH development plans are clear and agreed, and until the revised contract revenue streams are unambiguously defined, it would be prudent to stop such schemes and hoard the cash.
A period of $60/bbl crude (international price, local might then even sink to ca $20/bbl?), concurrent with starting a intensive Capex program, would cut the legs off the company.
Don't forget about the 18% rise from 120p to 142p
Buybacks are simply a distribution of cash. Nothing more. Nothing less. To get your pro rata share of the cash distribution you have to sell a few/pro rata (about 0.7% of holding so far) into the buyback. If you do nothing, you have bought more of the company at the buyback price. Before today's activity that price was 135p. Presumably it will be slightly lower now.
Meaning, those that lose the most are the ones who bought on the way up at a price above the less-dividend price. And the those that gain are the ones who are quickest to abandon the share. Buybacks feeding all the wrong people with all the wrong motivations. It is just the worst way to distribute profit. And just provides room for the BoD to award themselves more "performance" shares. This really is the pits.