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To generate attractive, risk-adjusted returns, principally through income distributions, mainly invests in US and European CLOs or other vehicles.
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$20 million buyback to narrow NAV discount from cash reserves. Not a fan of buybacks - would have just prefered a 4c special divvy.
Reduced quarterly fixed divvy of 2c........but i do like this commentary:
"...Establishing a consistent level of dividend provides greater certainty about future income for existing and prospective shareholders; based on the last quarter's portfolio cashflows the 2 US cents quarterly dividend would have been healthily covered.............The Board and Investment Adviser believe that recent movements in the market price of the 2021 Shares are not being driven by fundamentals and intend through these measures to demonstrate the Company's capital discipline and confidence in the Company's cashflows and NAV."
Hello,
I bought into Fair Oaks today and I wanted to say thank you for your opinions and insights which helped in my decision to buy. I was a little torn about the USD basis as of course it is a poor FX to be buying however if sterling goes lower still (it feels like it will) then it's slightly academic. I also managed to buy at $0.495 which I'm happy with too. Using ii you can trade electronically (I used to use HL but find ii much better value at £4 a trade)
My rationale for FAIR is that it's a "picks and shovels play" on defensives. Let me explain. Lending scarcity is driving higher rewards and that's great but risk is rising too. So if you can find a firm that's overlooked and that's targetting defensive verticals then the rewards are high and risks are relatively low. This excerpt from the link below "sold it to me": >>With this macroeconomic backdrop we like companies with pricing leverage or companies offering value-oriented products/propositions. Companies caught in the middle end up being price-takers and will struggle to generate free cash flow. We continue to see interesting opportunities in healthcare & pharmaceuticals, high tech industries and business services.
Anyway I researched the 2021 results and Fair Oaks web site before committing and spotted this recent article which is well worth a read.
https://fairoakscap.com/wp-content/uploads/2022/08/9Questions-Tyler-Wallace-Fair-Oaks-Capital.pdf
kentio; i also have BGLF and TORO neither of which have disappointed but not MPLF - not a reflection on MPLF which i do like just that i have my 'quota' in such stocks already.
damofarl, I am a long term holder. of. FAIR and this. concerned me. also. But, I have two other. stocks which normally pay in. June but have. delayed payment. to. July or August. . Maybe. because of the . extra. holidays. at end of. May? One. would not have. thought. so , but. with. 3 (including. FAIR) having done so???
Anyway, .like . you. I. have. confidence) . in. the. FAIR management, they. always produce. the. goods. Do. yo also hold. BGLF. and. MPLF they. are. similar . to. FAIR.
Some observations...
Great to see the divvy at 2.5c which is line with the last 3Q's but up from the year ago 2,25c which shows confidence. And whilst the NAV has dropped slightly in the last year, the dividend is not being paid out of capital and is still being paid from income/earnings. I believe the NAV reduction reflects the current market concern with recession/inflation rather than a reflection on FAIR's ability.
Whilst the recent annual report, to me showed, business as usual, and great management/competency of current concerns, i do wonder why the dividend has been effectively delayed by a month? is this to massage figures because income is faltering, or merely a reflection on the timings of incomes received?
I am very positive on FAIR, but irrespective of the amount, the dividend dates have always been pretty set, and i am maybe overthinking my concern that they have stretched the payment time out.
Appreciate any views on this.
scrwal: i had already noticed the delay which is highly unusual (and as such slightly worrying for me) so contacted investor relations. Received this response yesterday:
"We have confirmed with the administrator that a notification will be made shortly" - that was the entirety of the message.
The dividend seems somewhat delayed for some reason as no RNS has yet been released.
hello kentio; yes indeed; and the narrative from each of those you mention, is positive, garnering the opportunities, rather than be impacted by such. As you mention, the impairments is key - no good earning a margin on 10 and losing your shirt on 1, but that doesn't seem to have happened; they all report impairments at or below expected levels.
The U S. dollar strength. against. Sterling will also be beneficial. for the. dividend. All of the. CLO. funds. have been reporting positively. this. year MPLF, TORO, BGLP etc They seem to be. doing. very. well - with very few impairments.
Interesting to see the 5% holding declaration from Waverton, definitely a vote of confidence.
Quarterly dividend announcement due shortly; be interesting to see if it's the same as last year, or is increased to the level of the last 3. if it is levelled up, that will display a vote of confidence.
Note also the 25% rebate of mgmt fees used to purchase shares (done whenever SP below NAV), all of which bodes well. No fireworks, just business as usual.
Agreed great for income during these uncertain times.
Wonderfully boring results; income receipts up in 1Q, continually rotating into higher yielding/quality loans; reducing finance costs whilst extending life of a number of loans due to expire imminently, with new undertakings due to make first income contributions imminently. Ukraine/Russia region almost immaterial impact, albeit a note of caution that cost of living/inflationary pressures are building, but thus far costs by the underlying loan beneficiaries are being passed on. Focus is on paying high dividends, not SP appreciation albeit SP below/at NAV will instigate the management fee rebate being used for buybacks
RKbeekeeper; revisiting your post, you done well buying at a year low!
Whilst this is a specialised area, potentially risky, the yield rewards those who understand/are prepared to take that risk.
Weirdly, as part of a diverse portfolio i think it is less risky than it would suggest - witness it's non movement in current uncertain times/markets, when staid bedrock FTSE100 companies seemingly not related to the Ukraine area drop 10%?
Boring really is exciting some times!
rbeekeeper; FAIR is not that unsual although not common; if you are diverting to income, and not withstanding concentrating/overweighting your portfolio, similar considerations might be TORO, BGLF, MPLS.
But i do highlight they are all in that same specialised arena, so if FAIR was to see a detriment they would all follow; my personal opinion is, despite the very specialised/technical arena they operate in, all of these are very well, and to me, slightly conservatively, run. Hope this helps, no advice and all that guff etc!
rkbeekeeper/temple of doom;
couldn't agree more - one of those boringly enriching investments; i don't think there is many pi's here but glad to see i'm not alone!
Yup .... Agreed!
If you are looking for superior dividends.
This is an unusual investment as it is not one you can trade online with HL. (only telephone dealing permitted)
I am gradually moving my Investments over to income producing shares and now only have two AIM Companies.
Fair Oakes Income Ltd is a share that trades on LSE but in US $.
The dividend income is interesting and currently they are paying about 1.8p (and due to go ex-dividend tomorrow) but they pay quarterly dividends and there is information within their RNS’s that if you look will “pay dividends”
This is a long-term hold for me.
RKB
PS I paid about 47p for my shares but had to pay the £50 telephone fee which was a bargain.
and another flurry of huge trades? sells
and another flurry of multi mills there?
two buys there.
fairly large uns there.
a trade.
Whats the story here then guys
Cat, they'e postponed the new issue due to market conditions, read their rns of last Thursday
Is there any indication of when we will have access to purchase shares in this newly floated company and is there in indication on how much the shares will start off at?