Firering Strategic Minerals: From explorer to producer. Watch the video here.
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And now we can see who has been dumping the shares, with Blackrock down from almost 10 percent of the company to under 5%. I am assuming Blackrock will know more than us when they made that call.
I'm not expecting the next two dividends to be paid at all. May be back on track for the post-Xmas divi, but certainly not at previous rates. The price drop here has been worse than loan companies, even those in distress. Very quiet on the announcement front, looks like they are keeping a very low profile.
always liked this company but sold in early March - back in with a small investment as spread of partners should mean 50%+ of royalties should be normal by late 2020 (my estimate) - some may never recover (cruises) and investment lost - current divi is 19%, so this COULD pay 10% PA (perhaps)
Anyone have a better estimate on possible outcomes here?
Expect the dividend to be slashed. Gearing looking high too. It’s exposure to troubled sector of tourism does not augur well and explains the downward lurch in the shares. Of course, if a vaccine were to suddenly appear things would look different.
Not sure about packed cruises down the Rhine this year - but Duke does have a low cost structure and spread over a wide variety of companies bodes well against a drop of over half to it's share price which looks overdone, as it could recover more quickly than most business areas.
It paid it's last quarterly dividend, and was reasonably open & honest about it being effected, but looking to pay a proportion of whatever it did receive and not only stressed it's financial strength, but it's ability to help the companies as necessary - which I think is a real plus of not owning a share stake, but having an open financial stakeholding.
Next dividend update is only due mid june, so may drift about for a while, but could look like an amazing steal in 1 or 2 years time for the patient. (only proviso is I have faith in the management and the royalty concept, but no crystal ball !)
There's no mention of any individual companies. They'll be doing cruises down the Rhine again in a few months I am sure, try not to worry so much.
strange that no mention of cruises in todays' statement ?
Probably dropping cos largest investment is Rhine Cruises?
Lots to like about this company, IMO.
The Royalty concept has been great in Canada for Mining, and this is already generating long term cashflow based on revenues which seems to be a smart way to benefit.
Companies that Duke invests in are well established and good at what they do. I look forward to further diversification to defend against potential shocks. Duke has so far been very well funded by institutions to allow its rapid growth.
The increasing chunky dividend looks very sustainable with increasing profits expected.
I think the market is eventually going to re-rate this stock, but with a 6% dividend yield, this is not a real concern for now.
One of the best things about the Royalty model is that if there were tough times in the market then Overheads are much lower than typical companies due to the low amount of staff required for this type of venture.
If you look at the Royalty sector in Canada for Mining related ventures such as Franko Nevada and Wheaton Precious Metals as two of the very best, it shows the massive returns that can be accumulated by means of Royalty/Streaming over a period of many years.
There are many more successful Canadian (TSX) royalty companies at different stages which gives further validation.
Finally, I did once had a dog called Duke. I do not expect to have a 2nd dog called Duke.
GLA.
I agree, these types of awards should be struck at current share price when issued - then they would be putting their money where their mouths are. (They are after all already paid a salary to do the job).
To often they say to 'align the Directors interests in line with the company' - I would be very 'aligned' if you gave me a wad of free shares as well.
Shame, as I really like the company.
I worked for Segro once, where they re aligned the awards when the property market fell and they realised they wouldn't reach the targets - and had the cheek to say this was re alignment to reflect current market conditions i.e. make sure still very easy to reach !
Not surprised the share price does not react very much. To kill whatever good news there was in the half year figures, of course they had to publish their periodic director greed awards ("DGA").
Instead of giving share options with a strike price, say, 25% above current share price (to actually make them work effectively) they just give themselves shares for free.
Yes, they are apparently based on some obscure performance conditions, (half based on growth in total shareholder return ("TSR") and the other half on growth in total cash available for distribution per share ("TCAD per Share"). But the admission document SAYS NOTHING that I could find when I looked about what the GROWTH RATE actually has to be for all of these shares to be released, nor what the actual level of CASH AVAILABLE FOR DISTRIBUTION has be.
So we can safely assume that MAXIMUM AWARD will be made to all of the directors whatever the performance above some easy world index, once they have patiently sat and sat and waited for the vesting period.
Massive increase in profit and free cash. Dividend increased again. BUT share price only up a little........
Happy to be invested here though
I see Simon Thompson has again strongly recommended Duke Royalty. He expects pre-tax profits to double this year to £6.2m with the new agreements being signed from the recent funding. For March 2021 he expects cash flow to increase to £15.2m or 5.46p per share to support a dividend of 4p for a yield of 9%. He has a target price of 55p which I think on these figures is very modest.
Quite so, and theoretically 44p should be a support level, so don't know why price sometimes goes below - but if nimble enough to buy below, well done & it does feel satisfactory getting in ahead the institutions...
Just topped up at 43.8p and so will ignore any offer I eventually get. The problem I have found with applying for excess shares is that it can take up to a month to get my cash back if my application is restricted. Hopefully the share price has found its floor now. Best wishes.
Yes I see your point, but I understand you will be able to put in for any excess amount you wish (granted not guaranteed to get).
All in all however by pulling the price down for everybody - institutions & small shareholders you can effectively get in around the same price.
i.e. currently you can buy at 45p on a current rate of 3p divi it's 6.67% - it would be 6.8% at 44p.
The lesson as you indicate is that this is a dividend share - not a price flyer. It's already happened twice before with equity raises and year highs & lows are virtually the same for each of the last 3 years now!
Similar thing happened for me at Warehouse REIT - where I ended up buying more shares at a cheaper price in the market than the offer - swings & roundabouts - but for once I felt I was better off than the institutions (small comfort) !!
All true, but by tagging in existing shareholders after the main event, there is little incentive to take part, especially at (without checking) 2 new shares for 51 held ? Not that I have actually received the offer yet.
Like property REIT's this will likely be an ongoing issue here - it pays out nearly all of it's profits, so the only way to get money for new investments is issuing more shares. To do that successfully it has to offer a discount = this may happen several times - 2 steps forward 1 back.
It's a choice of good dividend or good share price growth.
At least they are currently still offering to small shareholders, unlike many other companies.
How to crash the price before making an offer available to loyal shareholders.
Excellent results this morning - good dividend - looks to be a long term hold for me
Agree with all thoughts on DUKE, and good to see the guys behind the company. I now only invest in quarterly dividend payers, they keep my interest better, and I have also doubled my investment in Duke this week. The trouble with a lot of quarterly payers like London Metric and Tritax BB is that as the price rises and the companies become more established, the yield doesn't follow suit. VSL/VPC are another company who I think are going places, their dividends are outstanding.
Thank you for that. Very low key explanation of what Duke do. I think this is a tremendous & unique investment with a fantastic historic, present & future track record, with an excellent dividend yield. I am amazed they are the same price I bought them at 15 months ago. I think & hope that the results on September 9th will show their great growth. I like the comment that many of their future royalty projects are in late stage negotiation & they have the funds to complete these.
Simon Thompson of the Investors Chronicle is a keen follower of this share. I think in time as it grows, it will come to the market's attention & will get a premium rating as they have a unique business model. I have more than doubled my holding in the past 12 months so it represents nearly 25% of my total portfolio, so am hoping my optimism holds good.
Hi all,
We produced this for Duke - it's more of a general intro to Duke Royalty & not specifically for investors. However, thought it might be useful to some:
https://youtu.be/nScK8bSaHkE
So this caused the shareprice to rise suddenly to 54.90p......
24-Jul-19 15:24:25 54.90 -87,509 Buy* 45.60 46.00 -48.04k
There is a matching trade at a correct price
24-Jul-19 15:24:25 54.90 87,509 Buy* 45.60 46.00 48.04k
Someone with "fat fingers"?