Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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Hi Mr Solo, yes I believe it is the same REA Pref's and so the same coupon. I also own some of their Sterling Bonds.
I'll check out your Volta post! Yes it's been a stella performance from PEY/S and I just added a few more VLS in the last few days, I've always rated them , even when we were under water!
My most recent investment has been in private equity in a growth market, so I'm keeping my fingers crossed. I've had one reprice in the last few days and it's given me a healthy x4 (before SEIS and EIS uplift). You can't sniff at 400%!
I need to think about opening a Euro account somewhere. I've had my eye on Volta for ages, but never quite pressed the button. Interestingly, I've been giving a little bit of thought to MYI, not sure if it's got the yield kick you like, but I think it might be a sensible play in the current state of the game.
On the subject if REA, I see there's been a new buyer come to the common stock today, I guess it attractive in the world of $100 petrol, they use a lot of palm oil as fuel over there. I keep thinking about initiating a position that would put me across the whole cap table.
I just added a bit of debt from these guys: Modulaire https://www.modulairegroup.com/ bought around par with a 6% plus yield. Government money is going their wayand it's quick to deploy their kit in an age of labour shortages.
On the subject of esoteric income, Volta, have you ever considered Litigation Funding? There's a crowd who offer it to retail investors and the returns, and losses, can be "stella" https://www.axiafunder.com/
Losses have the potential of being greater than the capital committed, but so far they've won the majority of the cases!
I seen to remember seeing chatter on the p2p forum suggesting irr of 70% on a broad portfolio.
Oh yes, I've also been buying VOD. Not a bad yield and it's so out of fashion, but I have a sneaky feeling it's growth potential is being under valued, and for me, it's at least averaged me down LOL I Mercantile have been building a position.
Hi Devon, I hope all is well?
Thanks for your remarks. Interesting to hear that your REA prefs have paid their coupon. I wonder if that is the same coupon that NCYF remarked had been missed (at the time obviously)? If so, it would be a bit of a boost for next year's figures at least and might explain NCYF's readiness to dip into the reserve (i.e. if they believed the REA coupon was just delayed).
Your mention of Volta made me smile since, yes, it is one on my radar! In fact, I think I posted on the VTA board to see if there was anyone out there. Without unduly clogging up this thread, I do find it interesting because even currently the yield is 6.7% or more. But I need to see how they are going to grow it from there. Is it just by refinancing and releasing a bit of margin, or are there more and more opportunities for them to build on? Just like you, it's on my radar for as and when the market is in a panic about something! I have noticed it is creeping up from EUR 6 to more like 6.30. Ideally I would refer it at more like 5.50 to give that degree of protection and a better yield! Not sure how/when it would get there.
Meanwhile, PEY has stellar NAV performance and VSL knocks out the divis!
Stay well.
Guitarsolo
Hi, some little good news, REA potentially has turned a corner, they've paid a coupon on their Pref's, but not yet "caught up" on the outstanding. As far as I remember the sterling bonds haven't missed any payments. I bought some Pref's mid-80's and think they are 96 today. When, and if, they do catch up then there's a nice chunk of accumulated cash. I have a couple of payments on my ledger from Matalan, the last being early August. The refinancing issue remains constant, there almost a regular flow refinancing at a lower margin, so it is a bit more challenging, but he's in the right place with short dated. My historical bond portfolio is still yielding @ 9.6% and has a much higher yield to maturity. Is that an unknown? What the yet un-redeemed stocks will deliver at maturity? There's still higher yield around and there's sellers of it from time to time. You just have to work a bit harder. So I remain a holder, and I'm accumulating on a monthly basis. I've had a bond yield in the last few day c10% return ( coupon and capital) over bit more than 12 months. Now I face the challenge of where to go? I still happy to add RAV's equity and debt, there's a bioheat unlisted bond I like at 8% and New Day, which I think is already in NCYF portfolio. I've also been buying BPCR.L - 7% yield and I'm up a bit in capital terms. The debt market has a larger number of instruments than equity markets, so I doubt he's not got option. As we share VSL, PEY (and this) in our portfolio's portfolio, have you ever look over VOLTA FINANCE VTA.L it's one of those that I have on my list for "panics" and never quite get around to buying when there is one. In risk terms, I prefer BPCR, but Volta has some merits...and it gets cheap on occasion.
Have you ever looked at the "ethical debt market"? No liquidity, but the likes of Triodos, Abundanc and Ethex sometimes offer high yield risk instruments. I've picked stuff up, and you can for as little as £50 investments!, with yields ranging from 6-10%, so far no defaults. It appears Kenyan woman farmers are often more prudent that CEO's/CFO's of multinationals. No surprise there LOL
Hi Devon,
Well, having had a brief read-through (anything more is beyond my knowledge level here!) it doesn't read too well. However, the lack of share price movement perhaps suggest the institutional investors think it is par for the course.
But EPS came in at 4.18p down from 4.59p the year before. That leaves the dividend uncovered (at 4.47p) and means that they had to dip into the reserve account for 0.29pps. Fortunately, that reserve account built up since 2007 was very healthy at 4.15pps (so is 3.86pps afterwards - still 86% of a full year dividend). Thank goodness it was there is all I can think! But it is still healthy at 86% of a full year dividend, better that HFEL for example which has a reserve fund of about 55%. What's a reserve fund for if not times like these?
The drop in EPS is being blamed on a couple of missed coupons/dividends. This from the report:
"The decrease in earnings happened as a result of a few missed coupons/dividends such as Matalan Finance and Rea Holdings (which may be recouped later) and because the environment for refinancing at cheaper levels was favourable which meant the number of bonds that were redeemed early ('called') was greater than we anticipated and finding replacement bonds with the same level of payouts is getting harder."
I guess if they are recouped then we'll see a bumper year in the future. However, I suspect they won't so it is probably best to expect that to be a permanent hit.
So much depends really on whether in the long term they can replace the called bonds with something that pays the same. It might be a busy year on that front if companies do try and refinance now ahead of presumed inflation/ higher rates. It's hard for Franco et al because you can't really have your money sat there not invested/ earning something because you think higher rates/inflation are coming....but when?! I guess that's why they're keeping durations short where possible.
I'll probably continue to hold on the basis that the reserve fund can prop up the dividend for quite a while until the world rights itself (we hope!). Certainly there is still no money in gilts so on the debt front it's got to be corporate bonds.
Anyone else have any views?
Guitarsolo - ("Why worry?" by Dire Straits comes on as I finish this note!)
Hope you are well Mr Solo, looking forward to your comments on the report! Like Franco I've recently bought some RAVP, 2 Sisters and REA Pref's. I also added Matalan on it's low point. I've held Bracken Mido for a while.
I've made a note he's holding Downing Renewables & Infrastructure. I may have a look at that again on any market weakness. I've got cash sitting in a Downing unlisted product at the moment. (5% yield before it was redeemed early) which I might use.
Like you, I had some notes on soi's high yielders. Like the Board, I expected them to be able to find high yielders to replace the maturing issues, but never expected early call/redemption to be so high and it replaced so easily with lower rates. I may have a look at ENQ1 again, chance that the maturity will require a higher coupon, another couple of %
For the moment, I carry on accumulating NCFY on a monthly basis (alongside INXG)
And I was just about to run a quiz for predictions having nabbed 1.47p for myself! It wouldn't have taken a genius to guess that...
More important will be what the EPS came in at and whether it has grown from last year (4.58p I recall off the top of my head). It would be good to build a reasonable gap between the EPS and dividend to allow for more than 0.01p per annum increases.
Bravo Franco indeed (in these times).....but let's face it, he's done it to be able to say he has "always increased the dividend every year"!
But I'm not moaning......!
Bingo! 1.47p. Bravo Franco!
Hello Devon,
Many thanks for your note, albeit to relay sad news. Indeed I do remember Soi and would often take note of his posts. In fact, somewhere on my laptop I have a list of about 20 of Soi's recommendations for high yielders! It is probably a bit out of date now but I took some comfort from the fact that I hold/held a decent share of the companies he recommended - it made me feel I was doing something right! He was always willing to share info and opinions and that was appreciated. I'm sorry to hear of his passing.
I hope you're well down there?! It's been a tough old time trying to find income that isn't associated with capital loss. Here's hoping for "value" to have its time in the sun!
Kind regards
Guitarsolo
Hi Mr Solo, I don't know if you remember, or followed, soi on the old ii boards. I understand he's recently passed away.
He was a prolific, smart and decent guy who was always willing to share his views and discuss the merits of a position. I'm sure he'll be missed.
So, that drop a few weeks back to sub 50p and below the NAV was only temporary. NCYF has returned to its long-run circa 4-6% premium to the NAV (which is a good sign in my view and a nod to Franco's management here). I hope people were able to take advantage of the cheaper shares even if it means someone was probably being forced to offload in a hurry. I added a few to average down a penny and just sit back to take the dividends inside ISAs.
With Cqs New City High Yield Fund Limited being a CEF thought this would be useful for anyone new to investing in funds
https://www.fidelity.com/learning-center/investment-products/closed-end-funds/what-are-closed-end-funds
should read "so around 9.5% based on current SP" etc.
Wish we could edit posts - sorry
Decided to get back in here today as part of my core p/f for income.
Happy with the 48.1p paid, as down 9% in last couple of months.
The divi seems secure for this year at a massive 4.46p, so around 9.5p based on current SP of 47p.
My plan is to hold for the divi, or sell if gets back to 53p.
If SP remains static, we're getting over 9% p.a return.
Always a slow burner, that traded bw 57 and 63 for several years before Covid.
The divi has been maintained despite the 20% drop in SP since 31/12/19.
Fits nicely into my SIPP p/f.
GLA - CSDI
Used to trade this between 57-61p .... kept clear this past year but could not resist after this morning’s fall.
And in a flash today's early morning fall was erased (I knew I should have jumped in). It could just be a desperate seller trying to offload and the market taking advantage of it - like they did to Woodford.
Still, if anyone has any thoughts I would be grateful to hear them. There used to be an investor on ii.co.uk called Soi who was very knowledgeable and willing to share. Shame that website went to pot.
Looks like a holder is bailing ..... happens .... happy to buy for a 10% yield.
Also not sure why this has been marked down..I’m a buyer this morning. Last NAV no where near SP.
Won’t speculate.
Not a clue but I've bought some .... trading well below NAV is a first for this share in recent times.
Fellow NCYFers,
Anyone aware what is going on recently? For this stock to fall 10% in 2 days is highly unusual (when not part of a market-wide drop). I can't see any RNS and the recent NAV notices were similar to those that went before it.
I can only think this is concern over bond yields/ inflation/ interest rates. But the move is rather drastic and not a long-term trend that would be more typical. On the back of recent advice that the company expects dividends to remain on trend this is surprising so I would be grateful if anyone here has any ideas.
Thanks
Guitarsolo
Some positive comments about the dividend in the H2 2020 update:
"In the absence of unforeseen circumstances, the Board expects to follow the same pattern of dividend payments as declared last year and maintain or slightly increase the total level of dividends for the year. "
"In the current financial year, a dividend of at least the same as the previous year (4.46 pence) is likely to be covered by earnings. Should this not be the case, the Board is prepared to use a modest amount of reserves to make up a marginal shortfall and anticipates that this will be the most likely scenario for the next few years as well. "
I'm guessing we might get 3 x 1p and 1x 1.47p this year then!
Still, I welcome a degree of predictability and news that companies are paying their coupons/ dividends.
Guitarsolo
Totally agree CSDI. Wise words! I have my cash from the UCG tender to deploy, but will stand still for now. All the best. A
I was looking for an update from the fund manager but nothing since nov report yet.
I did read they were able to hold the divi short term and would use reserves if needed.
A couple of good closures in november report suggest a bit of help was on hand for this current divi.
I would like to buy back in but only once the divi is rebased as expect the SP fall would be more than the divi cut when it comes.
Patience required for now, but has done well to get back to 52-53p level, but still down a good 13% over 12 months.
I've gone to SUPR for now as expect that is more secure with big supermarkets behind it.
Cheers - GLA
Hello CSDI and adv11. Keeping this relevant, I hope. The divi has been declared, and maintained. Recent article in The Times said equity dividends are unlikely to recover for three or four years, as Covid 19 losses are repaired. This is therefore not a good time to be shopping for income payers, unless you are looking to the medium term returns. Given that, I think we abandoned this too early. Interest rates may remain low, but there will remain a lot of entities, commercial and otherwise, who are distressed enough to be required to pay a higher rate. Great minds think alike, and fools never differ!
ADV11 - Feel free to start your own thread on here if you have something to say.
Very little chat on this share by others.
It is one I had held for some time but sold recently as expect a divi cut based on the Managers latest report.
Would expect the next divi announcement anytime now... maybe tomorrow even
Good luck
why don't you swap numbers and give each other a call to discuss your naughty dealings ? It would save boring the rest of us half to death. Just saying x