Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Should I be (we be?) worried - having pointed out the share buying bonanza last month.......it now appears that Plus has significantly slowed the share buybacks.............we're back to the 25,000 a day. Which, bearing in mind the 'low' share price at the moment (or is it high......but we just don't know the facts at the moment and thus think it's low......when in fact it shouldn't be at all) doesn't make sense...........or does it?
Do they know something we don't?
Yes the share buyback v return cash (div) is always a controversial issue.
I'm more ambivalent and i think that poeple who are more pro dividend, esp when the share price is stagnating/falling during the buyback, sometimes forget that the sp (value of their shares) would be even lower still without the buyback.
An overlooked positive maybe during times like these...
I don't think they are cancelled. In fact - haven't a load of the bought-back shares just been given to the Directors (13mill of them?) - have I read that RNS (from 3 or 4 weeks back) right?
I'd just prefer the buybacks to stop and they hand back the money in dividends in all honesty.
Yeah, but those buy back shares are held in treasury and have not been cancelled?
I don't recall reading anything about shares being cancelled. I'm sure not the only one questioning why buy back shares are not cancelled. Or have I missed something?
Q1 trading update due soon will hopefully show continued progress in US + progress in Japan could be referred to as our small acquisition there was made some time ago + global markets have been very volatile,which should help
In all the years I've had numerous shares doing endless buybacks, it's hard to figure out whether they have had any material impact on the share price performance because there are always so many other factors going on which have bigger effects.
Right now confidence in any financial type share is shot to pieces and no amount of buybacks can change that.
132,000 bought yesterday - that's quite a buying spree...............and yet the share price continues to fall................is that because of a misunderstanding of when Plus typically makes money (when the global economy is in tumult) or is there a seller continually dropping shares into the market keeping the price depressed?
Either way - we're under 92,000,000 shares in circulation now. Can only be a good thing for future dividend announcements/yield.
They have upped the buyback rate massively, which must reflect confidence and this volatility must be a bonanza and people are massively underestimating the impact of higher interest rates on earnings on own and client balances. I think the eps estimates are way too low and the shares as well.
Yeah, buy back business is something that gets me scratching my head.
A buy back to keep shares in treasury to award to directors at a later date is not returning capital to shareholders IMO, no?
A buyback only works in our favour if the shares are cancelled, surely?
Why not just award themselves fat cash bonuses or is there some tax efficiency wheeze going on here.
Yeah, yield is looking pants compared to what it was.
Hasn't helped the share price recently. You would think with the vix going vertical there would be some buying here also IGG similarly whacked. I suppose all financials are feeling it right now I know I am!
With the much reduced dividend last time, I wonder if that will drag the share price because the yield now is not very good compared to what it used to be. I would like to see those treasury shares cancelled and not given to directors.
52,000 bought on 13th March, 104,000 bought yesterday. The average (not that I've been looking each day but sporadically over the last month or so and previously) has been 15,000-30,000 generally. 30k a day in the previous window but recently (with the share price rise close to £20) they'd slowed things down to 15k or so. Now we're at £17 they're really going for it.....which should tell us something.
Perhaps they should put an RNS out saying they had no money in SVB to give extra confidence. If I was in their shoes, I would....
I am bullish but an eps estimate always includes everything including interest earnings. EBIT is a different matter. However, I do believe estimates are low due to the massively better returns on cash.
2023 consensus earnings updated this morning on investor relations web page to EPS $2.42Add in $40m of interest earnings (which sit outside and is in addition to EBIT). 12% tax rate. 88m shares in issue at year end and you get EPS of $3.16 (£2.64 at current exchange rate).
@tom79, it looks like the pace of the buy backs has indeed picked up. If the rate of the last few days is the new rate, this equates to c. $12m a month and would be a six month buy back completing at around the time of the interim results in mid August.
Why are we getting so many trades of 1 share, 2 shares, 3 shares? Hence the number of trades are very high, over 2000.
Thanks, I didn't study the RNS closely enough. 10 months for $70M so $7M per month. Roughly 22 working days per month so $318.18k per day. $318.18k/1.2 = £265.15k 265.15k/£18 = 14,730 shares.
@tom79, the pace of the new buy back program is in line with the recent RNS. $70m to run until 31 December 2023. Which equates to $7m a month or c. 15,000 shares per day at current share price and exchange rate.
Pace of the buybacks has slowed considerably now with the new program. Only about 15,000 per day rather than 32,000 before. They certainly like stringing it out.
If you look at the shares in issue on 26Feb21 they were circa 102m. Today's RNS states there are circa 92m. Therefore the net effect of buybacks less those given for performance rewards etc is roughly 10m. That is about 10% given back to shareholders over this time. The share price has risen more than this in the last 2 years and we've also recieved dividends. As a shareholder I'm quite happy that performance is rewarded as long it's justified.
I personally would prefer shareholder returns as buybacks over dividends but realise this doesn't suit everyone.
and Blackrock increased stake to 5%
Sounds like a bearish note from cannacord caused today’s fall. They have been consistently very bearish and wrong.
That's roughly £13m. I hope this can be challenged at shareholder meeting. It seems like snakes and ladders with shares being bought up then being put back into the "market" again.
We see why plus are so keen on buybacks now, those treasury shares bought with shareholder profits are getting doled out to all the big wigs. I made it around 653,000 shares in total.
If we continue growing & our US division can take a decent % of that market our SP will eventually re rate
"the share price tanked like an anvil attached to a hippo chucked out of a helicopter"
LOL that's a belter hope to never use that on any shares I hold but it is the gamble of single company shares!