Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
See you all on the KKVL board.
OK thanks, guess we will just have to see...
I'm no expert, sorry, but SQN, the ordinary shares are continuing as they are with the unknown Icelandic company KKV running things. No dividend for now (or ever ?), which is the one thing people invested for here. We can only presume that major shareholders voted to keep SQN going because it would have little value if broken up. There will be another vote in 12 months time to see if we then break up or continue.
The C Shares, SSIF, which are doing alright, without our bad investments, are being wound up, again, presumably because there is money to be made in their break up.
I'm also in Hardians Wall - HWSL - which is also being wound down. As each loan gets repaid or sold on, money is supposedly returned to shareholders. We had 19 pence per share back in April 2020, and are due another smaller repayment in the next couple of months, The trouble is they have commitments to issue a few top-up loans to the companies already involved with loans. There should be a fair bit more than the share price to get returned - eventually. I made a list of 20 loans Hadrians Wall had made. There were three to Bio-mass operations which ceased trading, although I believe there is equipment to sell on. The 19p we had returned was from a finance loan that was repaid in full, which leaves 16 loans of between £25m. and £0.5m still being repaid, all similar to what SQN has outstanding.
Apologies for my ignorance, however, how does the wind-down work? Are they redeem at NAV? Or fair-value? Is the discontinuation the preferred option for the ordinary?
That's a strange result. We continue for another year and the C shares go into wind-down. As @andsoforth says - not much value left in our company, and the holders of the C shares are getting out while they can.
I hope we now get a bit more input from KKV. Need to get tough to sort this out.
Started: adv11, 9 Jul 2020 19:52
Last post: adv11, 9 Jul 2020 19:52
HWSI Realisation Fund Limited announces that Mr Brett Miller, a director of the Company, has been appointed a director of SQN Secured Income Fund plc, with effect from 8th July 2020. SQN Secured Income Fund plc is listed on the London Stock Exchange (LSE: SSIF)
Would have thought he would be better for SQN. One disaster to another.
Started: jamesmaggs, 30 Apr 2020 22:54
Last post: jamesmaggs, 30 Apr 2020 22:54
Fingers crossed one way or another we move forwards from this line in the sand, even though I have no idea how to pronounce their name!!! GLA
Started: jamesmaggs, 30 Apr 2020 11:42
Last post: adv11, 30 Apr 2020 15:31
At least it's sorted the share price out - you can tell the sells from the buys now.
I presume they will already know what the result of the winding up vote will be, having consulted with the share holders who matter.
Kvika's website leads me more to think of them as long term asset managers rather than asset strippers. Maybe they will point some Icelandic investors in our direction. https://www.kvika.is/en/uk-operations
It seems similar to the Hadrians Wall one maybe?
The fact the SP is up slightly means the market is positive and anything to bridge the gap between SP and nav is most welcome although in many ways I was hoping for recovery and restoration of a monthly dividend,either way if the SP goes back up who cares!
I read the RNS as an intention to wind down the company. As it has a share price of 25p and a NAV of 70p this is brilliant news.
Started: jamesmaggs, 30 Apr 2020 10:05
Last post: jamesmaggs, 30 Apr 2020 10:05
Just looked through the rns and it’s just a load of management speak from what I can see mate! I’m resigned to not receiving divs on so many in the short term so I guess as and when it’ll be a bonus!
I was initially hoping that the main market listing would make a difference to DGOC tax situation, but I don't think it will in my case.
So, news today. Doesn't sound good for dividends -
The Board will work with KKV to determine the timing and quantum of any reinstatement of dividends and foreign exchange hedging once there is greater clarity over the impact of Covid-19 on the Company's borrowers.
That will presumably be after the end of June, so I guess we are in limbo until then.
Sorry just back tracking on the yank ones, I thought they were heading towards a main market listing (although that may have gone a bit quiet with the commodity price crashes!)? If so presumably the tax issue won’t apply going forwards?
Started: jamesmaggs, 29 Apr 2020 23:03
Last post: jamesmaggs, 29 Apr 2020 23:03
I guess it varies from broker to broker although I have to say I haven’t had that issue so hope you get it sorted at some point.
This one languishing against a wider market bounce but noticed some larger trades and the liquidity offering more two way trade than of late. My strategy is sit tight here and add a few here and there and ultimately a return to monthly divs will be the time we see a rerate and our patience rewarded,fingers crossed!!
A few good days in the wider market much talked about but from a massive sell off/low point but hopefully some substance beyond a relief rally!
Yes DGOC has been a nightmare for the tax problem. I posted and sought advice many times. It took an awful lot of research, and help from DGOC and (no) help from their registrars to get anywhere. It turned out my brokers I-web, the same as Lloyds/Halifax are not authorised to deal with this particular type of tax, and after a years battle they paid me compensation of the tax I had paid, but I still have to pay future withholding tax. I could move to a different broker, but I've done that several times in the past. I still hope DGOC can find a way round it. The problem seems to be the fact they are listed in the UK and it's an unique problem.
Anyway... still can't believe the markets are up again, getting itchy fingers.
It’s certainly been an odd one on liquidity with buys shown as sells etc,added a few more first thing and that was the case for whatever reason but I’m happy to chuck a bit more in as I like the diversity of projects and more importantly the potential for juicy monthly divs at some point on the horizon.
The March dates were like a supermarket free dash for sure and I managed to get a load of trusts and reits for the longterm too and since then I’ve tinkered around with various bits and bobs thinking longterm as I learned the lesson from ‘08 not to sell everything that went up a few pence just to claw back other losses...time will tell!
I haven’t had any problem buying the others mentioned in a nominee account although had to do some tax forms for DGOC aa they’re American I assume.
Fingers crossed that massive discount to nav narrows and we get our monthly divs again in the near future. If they went to wind down I’d like to think the constituents would raise more than 20-odd pence for sure.
Strange times currently and if experts can’t put values on property assets and just about every asset class because of the virus,this is bound to be a difficult one to value too but my thinking(hoping lol) this will come good as we all need power sources and anything with a hint of green energy from waste is very investable and increasingly these days!
Thanks for sharing your views jamesmaggs. Strangely enough my broker won't allow investment in SSIF or SREI. They are among around 20 such companies on my quarterly/monthly dividend payers who are "not allowed", without any reasons ever given.
Yes I saw the "cornish pasty" programme. Although I don't know much about AD, my interest was stirred in the subject because 50 odd years ago my father was a clerk-of-works, and a couple of his projects were new sewage work builds. He used to often dump me at a laboratory in school holidays where they experimented on the bacteria, gasses and by-products. Wish I had got into that game at such an early stage, unfortunately I blew my school chemistry lab up, so wasn't encouraged to progress down those lines.
I made some initial notes from the SQN report that their top ten investments/loans were 1,3,4,7 AD Plants, and 5 was Suniva. So they definitely need sorting. No. 2 was a "diversified portfolio", then Glass manufacturing, Combined Heat and Power, Marine vessels, and paper mills.
I want to get back to read about the rest, which were another 6 AD plants, 4 IT and telecom, a Mobile modular, 2 Hospital investments, Lending, Remote Vehicles, Helicopter, Construction equipment, and 3 wind turbine investments. So there is plenty to go at if the company is put into wind-down.
As for the buys and sells, I am puzzled - my 4000 buy at around 2.56pm on Friday was the lowest price of the day up to that point - and it was a buy. There seems to be plenty of trades continuing today.
I'm sitting on what cash I have left until we get another big fall. I got a few amazing deals on 18th and 23rd.March, way below the prices shown at the time. Next time I'll be ready !
Thanks for your insight here. I originally invested along with SSIF,BCPT,SREI etc for the monthly divs and as far as I can see only one currently behaving itself but I’ve added more in all as I share your penchant for regular income and would like to think they’ll all come back at some point. Interesting you’ve also got Hadrians Wall as I got some dosh from them the other day although I haven’t added there to date.
On topic it’s quite a complex set of investments and I have to say the 73 page recent report was hard going!
Saw a snippet of an AD plant on ‘Inside the factory’ on tv recently(I think it was the Cornish pasty one) and the concept of producing clean energy from waste is certainly on the money these days.
I read somewhere that JLEN had invested in a plant recently but don’t think it was one of ‘ours’ but reassuring nonetheless as they’re well known and respected.
When you read into it they seem to have a lot more going for them and fingers in lots of pies.
My only thought is there’s still a big seller lurking which is hammering the SP but if and when the overhang clears then hopefully that discount to nav will reduce somewhat?
It always seems bizarre to me when we all know the SP will rise once the seller clears including the seller,so why does the seller keep selling as no one else would if they knew the price will pop back up when they’ve sold!
Started: jamesmaggs, 25 Apr 2020 10:50
Last post: adv11, 25 Apr 2020 12:31
I'm probably one of the few people supporting SQN at the moment. I think the recent half yearly report and other RNS's make interesting reading. I look forward to going through the details more when I get time. I added 4000 shares yesterday to bring my average down. Showed as a sell of course.
On the face of it, they have made some questionable loans, namely the AD Plants (which interest me) and Suniva, but reading further into the actions they have taken, they seem to be very hands on with sorting out the problems. Not shy of putting companies into administration or using the US Courts. There seem to be a few other loans in crisis as well, so that is why the share price is at such a discount - and also, as I only invest in quarterly dividend payers, and SQN have suspended dividends, it was touch and go if I sold out of stuck with them. I sold out of HSBC, British Land, Land Sec, etc etc because I didn't like the way they handled the dividend suspensions, but I stuck with SQN and added because I "think" it will turn out well eventually. Basically they either turn it around fairly quickly, or the major shareholders will vote to sell the assets off and return the capital to investors. And I believe there will be more in the returns than the current share price, but that is what I want to spend more time studying.
I am also in Hadrians Wall, which has been through the same, with Biomass companies it invested in going into administration, and the company is now returning capital to investors. I got 19p per share yesterday from them, and that is from just one of the 20 investments they have.
One thing on my mind about SQN, without going into the documents, is that they are only allowed to invest a certain percentage in particular industries. I suspect that with the AD Plants, they have over invested ? They list the British and Scottish plants as AD, but are the Irish plants down as "Agriculture" to get round the investment limits ? It's a bit naughty if that is the case. Time will tell. It's either sort it out and get back to high dividends in a few months, or sell everything off and return capital, hopefully of at least 60p per share.
Any thoughts from fellow holders on the huge discount to nav on this one?
Started: geofsss, 6 Feb 2020 22:28
Last post: geofsss, 6 Feb 2020 22:28
is the tender offer worth taking up?
Started: andsoforth, 20 Jan 2020 20:34
Last post: legsofman, 29 Jan 2020 19:43
Added a few G today.
Seems oversold at these levels IMO.
Leaving it a few weeks now.
Much similar here to the situation at Hadrian's Wall- HWSL. A couple of poor investments and the reputation is in tatters.
SQN need to bring in J.Laing Environmental Assets to help sort out the AD problems before JLEN or someone else picks up the assets on the cheap.
The way this is being sold down, 40’s could be here rapidly.
If it’s Schroders selling they still had over 9% on the holdings RNS.
Depends what their ulterior motives are and what % they want to go down to, if any at all.
Eyes Down!
Worst case scenario from the RNS was a NAV of 75p. With the usual 10% discount to NAV we see in the market we have 67p. The continuation vote may fail to pass. Then we would see the assets sold of, and a return of capital. That could be at c62p a share. Buying now at 52p gives a possible 20% profit. Is there a special situation developing here? Should we be brave or fearful?
I doubled my holding already. Went through as a sell of course. Will come good eventually, or sold off. Surprised they can't get the AD right. There is so much research and profit making ventures about. Someone should be able to sort it out.
Started: legsofman, 30 Oct 2019 09:40
Last post: legsofman, 30 Oct 2019 09:40
Ah well out came the holdings RNS and also another estimated NAV of 94.32p.
Possible bottoming process now.
Started: andsoforth, 13 Oct 2019 18:14
Last post: andsoforth, 20 Oct 2019 16:58
An uncovered dividend cannot be held indefinitely, and there is a precedent for reducing the dividend. So, I stick with my "realistic NAV" of 89p, and note this normally trades at c10% discount to NAV. That suggests fair value at 80p; and with a sustainable dividend at 5p, we have a yield of 6.8% while we await a re-rating.
There is perhaps ore risk here than some would want, and the Suniva investment is illustrative of what can go wrong, but the concentration on wind, waste and digesters seems rather forward looking. Time to add, at what seems to be an all-time low?
Hopefully the chairman will stick to his word - although this obviously results in the NAV dropping, and the price in the short term. "and recognising the importance of income to our investors, the Board intends to continue to pay the annual 7.25 pence per share for each class on a monthly basis, even when not fully covered. The Board and the Investment Managers believe that this policy remains sustainable as the shortfall in income from certain transactions is expected to be recognised on their conclusion. "
The track record here suggests a dividend cut has to be in the pipeline. Cover is only at 75%, so a yield at this price of almost 7% is sustainable. Still quite handsome!
Have a fairly large holding in SQN. Amazed that this still declines with daily sells and yet no Holdings RNS. Reading the last update it seems they are confident in resolving the solar co. issue.
Above a 10% divi I’m going to add yet more...not far off now. Worth the risk? I think so for a long term monthly income.
The company claims a NAV per share of 94.55p. However it has lent 5.7% of that to Suniva and other solar power enterprises. This may have to be written off. That suggests a truer NAV of c89p. But the shares trade at 77p.
EPS has averaged around 5.2p pa over the last four years, while DPS has been around 6p. A dividend cut seems likely, perhaps to a manageable 5p. That suggests a yield of c6.2%. For those comfortable with the risk, this may be a decent income play?
SQN Asset Finance Income (SQN) is one step closer to recovering $2.5 million (£2.2 million) that it loaned to US solar cell manufacturer Suniva, which has been rescued from bankruptcy.
Started: beefykeithy, 8 Apr 2018 00:58
Last post: beefykeithy, 8 Apr 2018 00:58
SQN are ordinary shares. SQNX are c shares which convert in to ordinary shares on the 29th june 2018. SQN shares pay a monthly dividend of 0.6042p & i am unsure how much SQNX pays but believe it to be a lot lower yielding dividend but when SQNX converts from c shares to ordinary shares it is possible/probable you would recieve a higher number of ordinary shares.
Started: Hawklord2, 29 Mar 2018 18:51
Last post: Hawklord2, 29 Mar 2018 18:51
in adding this company to my ISA. Can someone please explain what is the difference between this and the Finance C type share? SQNX
Started: beefykeithy, 14 Mar 2018 19:46
Last post: beefykeithy, 14 Mar 2018 19:46
There has been a lot more selling than buying lately this has brought the share price down. As for why i don't know, but at this price & lower i am adding to my holding. Pays a steady monthly dividend.
Started: sigil, 14 Mar 2018 14:09
Last post: sigil, 14 Mar 2018 14:09
Thank you CarpeDiem for your thoughful reply, I am somewhat puzzled by a 30p drop for no obvious reason. Even losing income from a major contract for almost a year, dividends were unaffected. I was also surprised by little or no reaction in price when those problem contracts were resolved in our favour. Therefore I see no reason to alter my original decision to invest, and will be taking this as an opportunity to increase my holding. This of course not to be considered as advice for anyone else. Please make your own decision.
Started: sigil, 13 Mar 2018 10:08
Last post: CarpeDiem1, 14 Mar 2018 13:01
Not entirely sure tbh. Nav has steadily improved but over the last 12 months the share price has fallen away. Nav is now nearly 99p, dividends 8.6%. It is true that leasing has dipped recently, but the fall in sp has been excessive in my view. I am hesitant to say buy more at this stage but the share price at 83p does look reasonable.
Has anyone information/view as to why the large drop over the year.
Started: bob6, 26 Apr 2017 00:07
Last post: moneygrabber, 26 Apr 2017 18:30
But what is the likely impact on the fund going forwards and the dividend?
Started: moneygrabber, 22 Apr 2017 22:49
Last post: moneygrabber, 22 Apr 2017 22:49
Does anyone have an opinion on the news just released regarding that solar module manufacturer and the effect it's going to have on the fund?
Year ending: 30/06/2017 30/06/2016 30/06/2015 Dividend payments 12th interim: - 0.6042p - 11th interim: - 0.6042p - 10th interim: - 0.6042p - 9th interim: - 0.6042p - 8th interim: - 0.6042p 0.5625p 7th interim: 0.6042p* 0.6042p 0.52p 6th interim: 0.6042p 0.6042p 0.48p 5th interim: 0.6042p 0.6042p 0.42p 4th interim: 0.6042p 0.6042p 0.33p 3rd interim: 0.6042p 0.6042p 0.30p 2nd interim: 0.6042p 0.6042p 0.92p 1st interim: 0.6042p 0.6042p 0.40p Total dividend for year: - 7.25p 3.93p Dividend metrics Dividend growth: n/a 84.37% n/a Dividend yield: n/a 6.80% 3.60% Dividend cover: n/a 0.92 1.14
Started: bob6, 1 Mar 2017 13:36
Last post: bob6, 1 Mar 2017 13:36
YOU CAN BUY THIS SHARE UP TO CLOSE OF BUSINESS TODAY AND GET THE DIVIDEND PAYMENT