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Auto trades are really at it. 1.5% up to now red. FTSE UP, financials UP. What's up with this....
Thanks Craig, I am thinking the same way, there is no apparent reason other than the fact that the company has decided to halve its dividend so it may have been punished for that. But on the face of it given the price of most asset management companies has largely caught up with NAV in the last couple of weeks, the story of Investec which isn't even at 50% of NAV seems almost too good to be true ! (I hope it isn't!). Thanks again for your thoughts.
Apologies,
Meant to caveat my previous post with **Non-recommendatory** and to take publication titles and material just for reference and with a pinch of salt. Thank-you
Hi WaspsFan
After a great deal of research, I decided to switch from other stocks to INVP and think that the answer to the question is a bit of an irregularity. Put simply, the stock appears to have been historically left on the shelf and is a highly profitable, cash rich business. Here is an article from 2019 from Motley Fool, who have also tried to answer. No doubt the South Africa GDP/Rand devaluation has been an additional factor, along with the cessation of dividend and share buy-back scheme. I think the divergence of N91, was part of the growth strategy to enable Investec to focus as a 'specialised bank'. To be honest I am not sure as to what extent this is all a problem, or a nice problem to have.
https://www.fool.co.uk/investing/2019/09/10/2000-to-invest-i-think-these-ftse-250-stocks-could-double-your-money/
Investec seems to be operating at a discount of over 50% to net asset value. Whilst most investment trusts have recovered to their NAV position - give or take - this hasn't happened here. Anyone able to offer a reason for that? Any insights gratefully received. Thanks.
Today's mark up by BofA should help you make your mind up, Craig.
Thank-you for your words olda! much appreciated.
Hi, does anyone know if the SP would have been normalised, at the point when 91 was demerged? i.e do folk think that £3 is a realistic target price?
Hi Craig,
Since you are honest enough to admit you are a nervous novice, I will ask you to choose which camp you want to be in: Li-Low or Yo-Yo? These are the two types of investors on these BBs. Yo-Yos buy to make a quick profit, think they can time the share's top and bottom and spend a lot of their cash on brokerage and stamp duty where applicable, becuse they trade so much. Li-Los, on the other hand, try not to worry day to day or even week to week and aim to sell only when they feel they have seen a healthy profit or fear an even bigger loss. Obviously that is simplistic and you can hold more than one portfolio as I do and to some extent play both: Safe and boring usually I li-Lo: Speculative I trade more often and aim to have one or two big winners to make up for the duffers. This is very risky time-consuming and may well take many years and much frustration before it might - just MIGHT work out. Many of those on BBs are just Yo-Yos. There are also people on here who just try to manipulate the share prices of the small risky shares for their own benefit, so beware if you like the idea of 'having a flutter! And finally, make sure you have enough cash or near cash in case the car claps out or life is otherwise unkind.
Oh and the very best of luck. Olda
Glad to see some positive activity with the share and in this forum, I've held a mid size volume here for 4-5 months now (bought at 148p) with the view that once the worlds economies re-stabilizes it's a no-brainer this will follow suit. I've been mainly involved in WMH the past year and with that now done with after the takeover I have some capital to invest and thinking of getting more here.
I can't see it getting anywhere near the pre-covid point and with the asset management de-merger (now known as Ninety One PLC) taking place simultaneously it's hard to gauge what the value of INVP could still be, I'm not sure 433p is realistic, but certainly north of 250p in my view.
Since 31 March 2020:
• Ordinary shareholders’ equity increased by 4.7% to £4.0 billion, mainly due to an increase in retained earnings.
• NAV per share increased 4.6% to 433.5 pence
Banking Regulators are forcing Investec to retain capital and temporarily pay a lower dividend (5.5p this half year).
On the plus side for shareholders this just mens that the Net Asset Value of the share is increasing faster because of all the retained capital that would have been paid out as a dividend.
In the past 6 months shareholders have received a 4.6% increase in the underlying value of their shares.
Get 433p worth of share for only 190p !!!! (190p at time of writing!)
Hi olda...
Bought 5k shares around half past 8. still have quite a lot of spare cash for later. My main worry is just to try to recoup initial losses and INVP seems a good vehicle to get there. Also like the fact that there is little or no ‘ramping’ on these forums With INVP, implies that there are a lot of stable institutional investors. You could say it is the antithesis of Boohoo. You can also probably tell that I am a nervous novice come stocks and shares. Thanks again
Craig
Hi Craig,
Thanks for your message. It's up to you of course but may be you could do worse than take some now (cum the div!) and keep some cash to see what happens later.
Hi Oldabutnowisa.
Your comments are a breath of fresh air and the only commentary I can find. I was waiting for today’s RNS before investing in this company having withdrawn from the likes of BP with paper losses. I Have always liked this company RNS seemed ok too and it has been stable to say the least right through this whole sorry state. Just seems the SP has gone a bit south since this morning. Maybe this is one to forget about for a year or so and look forward to £3+. Take care Craig:)
Under the circs, this is a respectable performance. Once the fast buck merchants have vanished the SP should stabilise and this should move up well once the vaccines are available. A decent business which should recover to £3+ in due course.
What figures are we expecting and when? Been a great couple of weeks!
...the imminent figures don't provide the excuse for a dump!
Thanks alwayswrong .. you should change that user name ..... I see Investec creeping up and banks in general! stay safe.
Osaka..as well as Lindsell Train take a look at Fundsmith Global Equity I accr...it's similar strategy to Lindsell train but more focused on US and returns are much higher than Lindsell for last few years.. I had both for diversification .As always DYOR GL
Haha...thanks Oska..will take a closer look.
I belive it will go to around 150 -170 ... so you have not missed the boat, it is being held back on purpose IMO and will get a rerate soon enough ... this is my research please do yours before buying! I dont know the future, if I did know one would belive me anyway :) GL Sir
BATM looks a great share.. I think I missed the boat here..
I think BATM Advanced Communications is also looking good, and there is a dividend coming , making alot of money at this time, one more from ST!
TY I too have Lindsell train
Osaka..you might be right on this because I just liquidated this share along with my holdings in Legal & General and Direct Line as well as NRR...I am fearful that the stock market in general will come under pressure from Covid which appears to be taking a scenic route to a total enforced lockdown but this time with less generous support packages ..if the general stock market does retreat then all shares follow on the principle that an outgoing tide lowers all boats..I will come back in again when I think the uncertainty is over and hopefully before it's too late.. I am still invested in global equities such as Fundsmith and Lindsell train as they are less dependent on the UK..they are also doing steadily well..good luck with your selections..