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Target Been down graded again .Its life Jim but not as we know it. Get subs going.
Gardening leave tin tack?
Jim get with the plan mate
https://www.inpublishing.co.uk/articles/dc-thomson-daily-news-brands-hit-digital-subscriptions-milestone-21237
I expect my 5 million payment in reach shares...its really not hard to see the potential.
Totally agree: should smash £8! Old management vs. new technology - something has to give!
BT pension reported £11bn drop in value of assets (out of £57bn) . Same here . Dec21 pension assets were £ 2.6 bn& LDI was £0.9 by. In June 22 pension assets dropped to £ 2.0bn and LDI was £0.56 by, also a drop of 20% on total assets & reduction in LDI. Don’t know how the interest rate spike in sept/ oct impacted.No RNS.
Sounds like the government have finally realised that those they owe money too are now calling the shots.
ie 'You have far too much debt, we won't lend at cheap rates anymore, and if you don't start paying back your debts, the cost will rise (higher rates) and we might even stop lending to you'
The other potential incompetence is The BofE, they too may have to be brought into line and encouraged to unplug the printing machine they nicknamed QE.
Break out
Today we are moving up it seems. Seems a solid business here and surely with rising rates (higher interest rates are here to stay for a long while IMO) the pension deficit should reduce. This is how I've understood the problem with defined benefit schemes to be, mostly the very low interest rates on the gilts which make up a huge part of the portfolio (supposedly safe but never understood why as governments are generally terrible to lend to).
If this Dividend Yield holds the next few years, with decent profitability continuing, then this will have been a giveaway price, but as always SP's don't always move how I think they will or should be doing. The market and investors are a complicated thing.
Cookie, the biggest reason for the low sp is market concerns on the pension deficit. Reach has to pay £50-55m a year into the pension until 2027 - this means over half the expected profits will go into the pension for the next 5 years. The company was supposed to have a agreed a new pension payment schedule with the pension trustees by March 2021 - so far they have not been able to reach agreement. My view is that when the pension is revalued it will show a large surplus and because of this Reach are likely to want to reduce the annual payments - clearly not something trustees are likely to accept - hence the stalemate. The annual report of 2021 states that for every 0.50% rise in interest rates the pension deficit improves by £195m hence my optimism on the deficit. The annual report also says the deficit worsens by £31m for every 0.50% increase in inflation - clearly this is a negative but a much lower number than for interest rate rises. I think the lack of reference to the pension in the recent announcement can only be for good reasons - if it was negative news I would have thought the directors would be forced to mention it. IMO once agreement on the pension deficit is reached the share price should re-rate rapidly.
Well they have cleared their positions. Now all the com has to do is give 12000000 people an incentive really simple to start subscriptions £5 or £6 a month, with monthly draw and no ad option, everyone company is doing this now especially ITV, if 3 million subscribers and there is a good pension announcement this share should smash £8. Jim do a million Xmas draw and watch the subscriptions roll in. Or move aside.
Some huge off book trades going through this afternoon it seems the price is being held to fill an order expect TR1 shortly. The more I look at the fundamentals of this company the more I don't understand the share price !!
Am I missing something no debt, cash in the bank which will increase in the second half of the year paying a large dividend and a market cap of just £200 million. If someone more experienced on this share is able to provide more information I just can't understand the market cap.
Some large trades/buys today or is that the norm? Bought a few just in case it's around the bottom, but I have no idea what will happen next.
Should have said £5er a month, a week would be 800 millions now that would be better than s...ex
To my knowledge Serco & Royal Mail have paid on this as reported by news papers. No RNS. & that too soon after the budget. Looks like it won’t impact the operating financials of the companies. We had the Trading update on the 11th & by then the company should have known/ paid if any .
If there is a surplus, then they should flogg them all and all the profits should be distributed to shareholders on the day before the announcement. Or cancel 40%of the equity not put in treasury. But this lot have 12million subscribers and don't get the ad free point of view with monthly prize drawers for paying punters, what's a £5 er a week, to us it could be 200 million in profits created out of fresh air, all that education can make managing directors lose commercial common sense.
Do you think we'll get a clarification RNS stating how much liability, if any, there is with the LDI issue. I would have thought all listed plc's with defined benefit schemes should be checking the state of their own schemes with respect to the LDI issue as we don't seem to know exactly how big this whole fiasco is nationwide?
BofE printing money to purchase these bonds is effectively adding to the inflation fire.
Divi here looks good value at 270mil MC. No debt and a decent set of brands. I suspect if UK bonds don’t implode this will recover well next week.
Well done for avoiding. I got in too early... as I have done for many stocks in 2022.
Yes cheers unhooked. I find it hard to understand also and when things are hard to understand I think it's usually done that way on purpose so things sound more in control and orderly than they are. It does sound like the BofE will lend money to help pension funds stop the need to flog Gilts at fire sale prices! (More QE for that perhaps?).
I think the wider issue is that investors are dumping government bonds fearful of UK plc (Gov and BofE) being out of control with excessive public sector debt and QE and pension funds now find themselves with their pants down, so to speak as a result.
It seems that the LDI gravy train has popped. Hard to believe pension funds took such risks. It's amazing what comes out in a financial crisis wash. I don't own any Reach stock, though I own numerous others that I wish I didn't at the moment..
Yes Nick, I've been reading about these LDI liabilities. Got the impression that although the B of E are withdrawing support at the end of the week, they will make other company-specific lending facilities available.
It's all a bit over my head, but I understand that this is a liquidity not a solvency issue for pension providers. RE the latter, RCH's scheme is well placed I understand.
unhooked, The market could be concerned with the RCH pension fund LDI liabilities? (if any at all). I expect them to ask their pension fund trustees if they are affected and report to the market as the SP is in a fearful mood it seems.
Mr Market giving RCH a right old bashing - down 9% today on no specific news. The company's beliefs that they will trade well over the World Cup and that high interest rates will soften their pension liabilities are getting short thrift.
Simon Fuller gone - sounds like he was pushed. New chap in from ITV.
The market doesn't agree with you it's positive
Positive update, considering all the doom and gloom around
Should get a clearer picture of what's happening to the business tomorrow.