George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Originally in here at £1.15 averaged down to 90 pence hoping to build up a larger holding once I have spare cash. My isa allowance is maxed out so not much spare cash in the account as everything I'd invested. Am gonna have to keep spare cash in the account for future price drops. Rolls royce is my biggest star at the moment only wish I had invested more there.
I don't think the run up to 60 was a surprise, merely a minor correction of being over sold. Yes difficult times, as can be seen by the whole sector's cratering, in an economy not conducive, with ETFs continually removing their market/proposition. There are too many, yes, but still a role, and consolidation is necessary for survival, but in such there is great opportunity for those in the quality sphere.
The end of the bosses commentary referred to their scalability (underutilisation). They could have maintained the dividend, what with a third mkt cap in cash, and that they didn't, along with the recent purchase, shows that consolidation is there vision here. The economies/efficiencies of scale (cost reduction) will allow the quality to not only survive but prosper.
I hold a number of asset managers, and despite the structural threat of ETFs, think most are deeply undervalued, in their earnings alone, let alone the uplift that a KKR type consolidation of the sector would bring.
And I say that as someone who first bought here at £1.10! Frankly to still receive a 5% income in a bombed out stock in a bombed out sector, shows you the oppurtunity in PMI when either or both the economy turns or consolidation occurs.
Yes. In the bottom draw. The worry free bottom draw.
About in line with my expectations. Was surprised to see the SP run up to the 60's pre-results.
I will add a few more if we return to the low 50's in the weeks ahead, which IMO is about the right price at the time of print.
Would also like to see some more inside buying shortly too.
Satisfied enough to keep these in the bottom draw though for when better times arise. GLA.
Alongside the interim dividend of 3p we have decided to recommend a final dividend of 3p, bringing the total dividend for the year to 6p, equal to approximately 68% of adjusted EPS of 8.8p.
If approved by shareholders at the Annual General Meeting on 7 February 2024, the dividend will be paid on 16 February 2024 to shareholders on the register at the close of business on 19 January 2024.
Even the 3p on its own is a 5% yield currently. If we guess that a 2p interim will be paid in 6 months then we have a yield of 8.6%. In years to come, if this got back to 13p then the yield from todays buy in price would be 22.4%. One to hold with little down side IMO.
Final is 3p
Will see if they maintain or cut it. seems to be getting paid later next year
Results and dividend announcement tomorrow 5/12/2023.
I can't seem to find the dividend payment amount for February next year.
That's a desent dividend you will be collecting next year. Am not heavily invested here. Am thinking this is a better earning than my legal and general shares.
Thanks for the info Paul, appreciate you posting this. I will take a look tonight
Looks to me as though someone has leaked tomorrow's inflation figures ....
Turned out to be quite a day for asset managers! PMI +12%, IPX+9%, FSG +8%, LIO+7%, ASHM+6%
Let it stay lowish for as long as you like for reinvested massive dividends ……and some stratospheric compounding !
Good points. Mostly agree. Still a bit worried about the outflows though.
Many of your points apply to a few asset managers - and I think your -re-rating point is applicable to quite a few of them. If you're interested in some further analysis on the UK-listed asset management sector you may want to check out my post covering the recent Q3 updates
https://investingintheinvestors.substack.com/p/brutal-q3-for-uk-asset-managers
and the interview here on LSE
https://www.lse.co.uk/media/brutal-q3-for-london-listed-asset-managers-mixed-bag-for-wealth-managers-wczrcqwh0l209b9.html
Hi, I am a new holder here (£40k over last few days) as see a significant opportunity to rerate over the next year. Rationale for buying is: as a play on small caps oversold; aum outflows moderating; strong balance sheet; potential share price turn ahead of the results in a few weeks; oversold chart vs listed peers
I bought a significant stake throughout all of last week. Average just above 51p. The valuation is completely detached from fundamentals and this has now derated versus the listed peers by about 10% since Wednesday alone. Market clearly expects ongoing outflows as per industry trends but that’s in the price. Back to 60p fairly quickly I’d imagine.
Difficult to value these asset manager businesses where I like back of matchbox calculations so decided to look at AuM to Equity ratio … where PMI works out around 10% less than Jupiter that itself has been a basket case given its takeover in 2019 with legacy issues.
My reading is a hedge fund shorting having just sold 350,000 or so shares to MMs today to pass on to retailers.
To the question why shorts are not listed … some of these funds short in tandem across branches. Seen it before.
Oversold in my view topped up more today.
So the purchase looks like 50% cash and 50% shares. At circa £5M.
Looking back at the HY results to March, they have plenty of money for this:
Over the six months, the group generated £7.9 million of adjusted profit before tax for the year and had a closing cash position of £31.5 million. (H1 PBT was 2.4M ).
Dividend policy is circa 50% of adjusted PAT.
Premier Miton has announced it will buy boutique firm Tellworth Investments in a deal that will increase its assets under management by almost 6 per cent. Tellworth Investments was started by Paul Marriage and John Warren in 2017 and had £559mn in assets under management as of September 30. The initial consideration for Tellworth will be based on assets under management at completion. According to the announcement, this is expected to be £5.5mn - although it could vary between £3.5mn and £6mn depending on AUM at completion.
The initial consideration will be 25 per cent as cash and 75 per cent will be in Premier Miton shares. The initial consideration for Tellworth will be based on AuM at completion. At the current AuM this will be £5.5m but this can vary between £3.5m and £6m depending on AuM at completion. Initial consideration will be payable 75% to Paul Marriage and John Warren (the "Continuing Shareholders") (this 75% will be split 25% in cash and 75% in PMI shares) and 25% in cash to the Exiting Shareholder. The consideration shares issued to Continuing Shareholders will have selling restrictions, namely 25% must be held for one year and 75% must be held for two years (from the date of completion).
There will also be 25 per cent in cash to the exiting shareholder, who is BennBridge Hold Co.
Mike O’Shea, Premier Miton's chief executive, said the acquisition would give clients access to an “even broader range of UK equity investment solutions”. The proposed deal was announced on Wednesday (November 1) and is expected to complete early next year. The Tellworth Investments business is due to transition onto the Premier Miton platform in the second half of 2024. O’Shea said: "We continue to explore inorganic opportunities alongside our clear organic growth strategy, and are pleased to announce this new acquisition, which we believe is complementary to our existing business and further strengthens our longer-term growth plans. “Tellworth’s existing presence in the institutional market will further strengthen our distribution strategy as we look to grow our footprint in this market.”
Helme Harrison, CEO of Tellworth Investments, said the two firms have a “strong cultural fit”. She added: “Premier Miton recognises the value of both our brand and our longstanding expertise in uncovering mispriced opportunities within the under appreciated UK market.” Peel Hunt analysts said AUM diversification “appears positive” for Premier Minton and earnings accretion is “helpful” in a period of negative flows. The move was welcomed by Darius McDermott, managing director at FundCalibre, the fund ratings agency.
Premier Miton Group PLC Trading Statement Friday 13/10/2023
Carpe
Thanks for that, but as you allude to, a less than ideal date selection...
"Premier Miton Emerging Markets Sustainable Fund" ... Still very small and launched at a bad time but my other Miton Funds are holding up well.
News does seem to leak, however, so 50p bottom maybe?
It is actually listed for Friday 13th.
Make of that date what you will....
On the news button above last week.
Thx, where did you see that ?