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All I do is read the information provided by the company. There's plenty of it, and since the merger it's not so easy to understand, and I suspect some people are put off investing here for that reason. I won't be doing your research for you though, sorry.
I only invest in companies that generate good revenue and reward shareholders. I normally understand their business but that's only based on what information they choose to disclose. In this case, they don't disclose much about what they really do to generate the good returns.
Maybe I'm missing something. You obviously have a good understanding of what they do. Can you share the information?
Hmm, you don't really understand what they do but you've added to your investment. Are you aware that the dividend has been waived for 2022 & 2023 by the previous Pollen Street shareholders as part of the merger deal with Honeycomb? So for 2024 the annual pay-out is expected drop from (effectively) 64p to 51p? Still a pretty good return on your investment, on the face of it, but how can you assess the risks going forward if you don't understand what they do?
I don't really understand what they do but they seem to do it very well!
Highlight from the trading statement: The net asset value of the Group as of 31 March 2023 was £578 million, which is equivalent to £9.00 per share
Low risk at the current SP with a fantastic dividend. I've added some more.
Any views on why this has risen 20% since the last post?
But yes, I think Honeycomb shareholders did get screwed. Pollen Street was valued as if they were already producing the sort of profits they were projecting in the future - that shouldn't have been accepted by Honeycomb management. All quite dodgy. Upside for people buying in around here is that we're now in the same hive as the people who screwed us. There aren't any special share classes so we should benefit from their nous.
I'm glad the preference shares got blocked. I don't think like the idea of the company having them and it shows Pollen Street management can't just do what ever they want.
I don't think it's now appropriate to think of it being at a "discount". I think of it as a investment trust trading at about NAV with an option on a private equity firm thrown in for free.
Share price downside is limited due to investment trust part unless the economy really collapses. If they can get private equity AUM up a chunk more then it'll start making lots of money and the shares and/or dividend will go up significantly.
Afraid I got suckered proper with this! Had Honeycomb for a few years for income and it was great all the way through COVID - didn’t fancy the merger with reduced divi but everything I read seemed positive, Pollen St held great Companies! As Honeycomb when the discount went over 5% they did buybacks to bring it in. I’ve lost nearly 50% in capital value with a reduced divi. The most frustrating thing is their shareholder communications is non-existent, don’t respond to emails, reading results they don’t even mention the discount going out to a ridiculous level; on the verge of just taking a hit but it’s a massive loss; in theory the discount might come in as a Plc? Hmmm
I think I will add to Biopharma or riverstone credit opportunities.
That dividend "news" is very old.
Of course, we already dropped from 80p dividend to 64p and now 51p. Usually companies cut the dividend to grow the company, but it rarely works (EAT ?). I'll stick with it for now, massive losses if I sell. No longer in my remit if I don't. Yet the management are happy they are doing a great job.
SD235, I don't think there are any benefits to dropping IT status - quite the opposite. I'm not sure they would continue to meet the criteria anyway, because of the Pollen Street side of the business. I think IT status was a legacy of the Honeycomb merger (Honeycomb was an IT).
Hadn't spotted that adv11, thanks for the heads-up.
Also: "As part of the terms of the Combination, former Pollen Street Capital Holdings Limited shareholders waived dividends paid to them in 2022 and 2023 with respect to around 50 per cent of the shares issued to them by the Group. As such, the dividend targets correspond to a dividend per share of 16p for each quarter for 2023 and at least 25.5p for each half year for 2024." So that means dividends of 64p for 2023 but only 51p for 2024, despite a bigger total payout.
I have yet to buy.
Now I have no idea what to do.
I don't know what the benefits are of dumping investment trust status. And more importantly to me will they continue to pay dividends as streamed interest.
Bugger.
Well at least I haven't bought any yet.
Forget that, the buys showing around 539/540 must be sells. 550 to buy. Added into Starwood SWEF instead.
....but changing to half yearly dividends in 2024 unfortunately. May add a few to average down, but then look for opportunities to get out later in the year.
Profit down hence (I assume) the SP drop this morning. Also planning to change status from an Investment Trust to a Ltd Company, apparently to come in line with its peers. 64p dividend for the year though, looks pretty resilient & with the SP now back at 540 that represents a yield of close to 12%. That's a risk/reward ratio that I think might be difficult to beat currently...?
Opps fell 3.5% after my last post!
Not much either way. No increase leading up to dividend. Nor fall exdivided. Odd.
Fair enough SD235, I stand corrected.
"Net Asset Value
The unaudited net asset value of the Group as at 31 December 2022 was £578 million, which is equivalent to £9.00 per share. The tangible net asset value was £347 million, equivalent to £5.40 per share. "
Hargreaves Lansdowne has it at £9.12
NAV £5.40, not £9.
At least you got the 16p dividend right, so I guess one out of three ain't bad?
XD 2 March, not 3 March, so trading XD now. XD almost always on a Thursday in this country.
Ex-Dividend 3 March
NAV £9 but reading it all
https://www.hl.co.uk/shares/shares-search-results/p/pollen-street-plc-ordinary-1p/share-news
Share small move down.
Quarterly dividend 16p