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Not terribly inspiring, revenue down 22.9% & profits down 32.5% against comparable period last year.
Nothing that I could see about dividend strategy but I just read it swiftly, will go through in more detail later
Obviously leaked this week.
It’s a question of how much is in the SP following the drop from 390p
A divi update would help, that’s why I am here. Do we assume no change? Likewise gotta go out now.
Usual caveats
Trek
I can see balance sheet just keep shrinking, if they do continue like this then it's rather looks like controlled scaling-down or winding-down exercise (going towards wherever their targeted steady-state is).
A total market over reaction which is par for the course. Trading and IPO income is down but fixed income is set to recover (there is an inevitable time lag between cash coming off old deposit rate deals and being put onto new, higher desposit rate deals). The end of the world isn't yet nigh ;-)
Mr Market always over-reacts, up or down. More than 20% down currently, in this case. Surely a buying opportunity, if one has the nerve - and the funds? (Of course, one always has to beware the dead cat bounce, but in the longer term the dividend is very tempting.)
Companies such as JIM will always ebb and flow. Remains a financially sound well run company that treats it's shareholders fairly. Boom trading activity period during the pandemic was never going to last.
Very frustratingly, I have been unable to trade on my HSBC InvestDirect account. Technical issues, they say. That’s enormously irritating, as JIM is now down not 20%, but ‘only’ 14.84%
Divi costs 2.7m for the half year.
We have 5.4m cash
1.25m float for transactions
Leaves us 1.4m is to carry on
I expect them to pay this quarter and cut next to 2p.
From a personal perspective I have been trading more due to the vix. I am somewhat perplexed as to why JIM’s volumes have been so off when AJB, CMCX and PLUS are doing so well.
That is of more concern to me than the headlines. I can only assume it’s a less active client base that are attracted to JIM.
The update was pretty brutal. I am hoping they have something up their sleeves to pull us back to £2 some time soon.
Usual caveats
Trek
I have made two substantial buys since lunch, both at 163.80, and a small third buy at 163.975p. All three are showing as sells!
Out with the last at 160. Will see how it goes before reconsidering. If it recovers plenty of time to get back in.
Moved some to DEC for now.
Usual caveats
Trek
AJB reported a decline in trading activity in their half year to 31/03 (and reduced profitability). AJB's share price is currently down 31% over the past 12 months . Shouldn't come as any surprise that JIM is trending along a similar path.
% change In 1 year….. in 5 years
Cmcx - 31. +103
Plus. +19 +162
IGG. -11. +27
Jim. -50. +31
HL. -48. -36
AJb. -28. +37
Source google finance
Just goes to show hold and hug only works if you have the right shares and of course timing of buys & sells.
I like the low cost model that JIM holds and that they have a good BoD with good holdings but I was a little peeved at how the divi was cut almost incidentally and that at the last TU they then haven’t mentioned wether it will be cut or held going forward.
That makes this more of an ops play than income play until that unknown is known. If however, the SP drops below 150 then even with another cut the yield should still be good and well covered.
On sidelines atm.
Usual caveats
Trek
What's the relative % changes once dividends are taken into account? Likewise if dividends had been reinvested.
I added a few back in today now SP settled. The 3500 and 1500 buys are mine. Doesn’t look like 150 is on at least yet but will pick up more up or down later.
Thrugelmir,
There is a a 3p quarterly divi paid Mar, Jun, sep, Dec. So for my 5k shares that’s £150/quarter assuming divi held at 3p which I hope as it had just been cut to 3p or a yield of 7.58% on my new buy in average.
It only takes one set of numbers for these brokers to change the rev dynamic significantly as they are very low cost and cash generative.
It’s about retaining and growing customers and increased activity per customer.
IGG and PLUS are doing it well but more international. JIM could be a good recovery play from this level with a 250p target very possible.
Good luck with your investments
Usual caveats
Trek
Trek
I dipped in again yesterday at 155, I am also hoping that the divi stays at 3p but if it went down to 2.5 a quarter the yield is still good and covered.
Agree with your summation of the company and in 6 months time we will start to see the effect of rising interest rates on their cash balances, which could be significant.
I have noted the recent SP strength going through 160.
Technically there is likely another retrace to test 150 before it moves up again.
I think for now though the few pence either side is irrelevant for most.
I haven’t bought back in fully yet but depending how the balls that I am juggling land JIM is defo on the income buy list!
I would of course like to get in sub 160 if poss.
Usual caveats
Trek
Jarvis divi remains at 3p for third quarter, which is as good as we could hope for.
I'm abroad and haven't received my pack... What's payout date this quarter?
Err, as per the RNS.
"The Board of Jarvis announces that it is declaring a third quarterly interim dividend of 3 pence per share, to be paid on 8 September 2022 to shareholders on the register on 19 August 2022 and the shares will become ex-dividend on 18 August 2022."
Well it went to 155 after my post poss lower intra day. I couldn’t add nor have I been able to recently but for those following there is now likely a recovery to 200p on the cards.
If you just factor in a 3p divi being held that’s a decent quarterly return from 170p of 7% or 6% at 200p.
This has normally delivered around 6-6.5% yield so imo the bottom is in based on it being an income play.
Factor in the higher interest rates (helps deposits) and markets holding up and that adds to the SP strength.
Obviously usual macro risks etc apply but this imo is a pretty good entry now for those looking for a boring income with capital and divi growth potential!
I have to wait to top up once some higher risk pays off. As always though timing is everything and I may just miss the last chance at a decent tuckaway price here!
Usual caveats
Trek
Already difting upwards. Is an increase of 75bps in the base rate on the cards?
On basis of the dividend, and recent SP strength, I have just doubled my holding in JIM, as a long term hold.
Well done for adding. I am a seller at 200 though. May be a tad earlier dependent on volume.
This one is following rates higher but as always things don’t keep going up.
In at 157 and looking to get out at 200ish with a divi in the bag is a good return.
Will then come back for another run!
Usual caveats
Trek
This afternoon's rns has been less than helpful...
Yep I got out just in time. Had sold most anyway but had to send the last to market at best but got 157 ish.
I am not sure if the impact that this could have on new customers. Have read RNS twice it seems pretty vague as numbers are an unknown so have bailed. Will watch from sidelines.
Usual caveats
Trek