The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Secure Trust Bank CEO, David McCreadie gives an overview of this specialist lending business, which is also a regulated bank. David joined STB about three years ago, initially as a Non-Exec director, he took over as CEO two years ago and gives an update on what they've been doing, the strategy going forward and the impact of the current economic climate.
Watch the video here: https://www.piworld.co.uk/company-videos/introducing-secure-trust-bank-stb-december-2022/
Or listen to the podcast here: https://piworld.podbean.com/e/introducing-secure-trust-bank-stb-december-2022/
Alternative lenders are hardly flavour of the month right now but there must be value here surely? "Core" EPS (Retail, Vehicle, Real Estate and Commercial Finance businesses only) of 69p/sh in the Aug 22 interims.
Continued investment from II’s.
Follow the money!
Interims announcement soon.
Big rise in the last 3 days, i can't see anything other than Shroders going above 5% to be the cause....? A slightly more realistic MCAP now but you gotta think that it'll break out of the recent 1000-1300p range to the upside eventually...
Last update still very positive, I guess it’s recession and default fear that’s holding this back?
Or is it just a rumour?
Crazy reaction to great results and Divi announcement.
Hoping sp will rise today!
The consensus 21 eps is around 240p but not sure if that includes the latest upgrade. That puts us on some crazy low p/e imho. Can't help but feel that this will tick up again soon. I'm happy to hold medium term tho and take my divs along the way.
Bought back in today was expecting around 10% on sp - so far nowt!
Make that £5M in shares
5m shares bought at 1360p last fri.
I'd say stick with it , high teens possible this year...
Up now around 20% over last month- key question - how much further? my guess another 10% over next month.
webcast for presentation at 10.am...
webcasting.brrmedia.co.uk/broadcast/60d30f5c55a96337f0d9c198
Yes like you predicted :-
Peel Hunt has STB as a 'Buy' and target is 1592p
Several others have Buy recommends and average target is 1740p.
Don't normally pay too much attention too analysts but maybe i should since there is definately a statistically useful correlation between their average targets and the SP behavour on many shares (as you would hope/expect given it's their day jobs! ). Already ahead on my last buy and still a strong hold imho
Yes i think i might join you buying more...
It becomes an interesting personal investment conundrum to deal with when i don't trade an identified opportunity just because it starts to conflict with my overall diversification rules (all of which are fairly flexible anyway!) .
Perky, I agree , however I have decided to buy more in the expectation that the analysts will recommend others do so from tomorrow onwards. We shall see what happens.
Great update but only a subdued sp reaction. They appear to be saying that profit will be above the highest estimate of £36.8 M implying an eps of above 160p which is around the levels seen in the year end 18 and 19 and when the sp was around £14 and £16 respectively (v roughly). The low SP now presumably reflects a less favourable outlook going forward but given todays v positive upadate that priced in risk might be overdone. Got a few of these already so allthough tempted to buy more i'll prob just hold for now.
Stunning update - I am expecting full year results to be accompanied by a doubling of the divi. All looking god here imv.
I spotted the massive trades yesterday but didn't get time to write here. Unsurprised to find an RNS this morning - Arbuthnot selling. Not sure if this accounts for all the big trades. Wondering who is on the other side. Googling history Arbuthnot had stated plans (11th April 2019) to sell down from 8.8% to 3.1%, partly to reduce regulatory capital burden of stake. I don't know if they accomplished this at the time (sorry not got time to go through old RNS's), but if they did they obviously bought back in size and maybe did very well in the trade. Obviously some risk of further selling (they are now at 5.7%).
On results - ST are flagging that this year's growth will (obviously) feed only fully into next year's NII (average balances), while costs will jump. Presumably fees will also recover. Overall operating profits may not grow in 2021. They also flag possible further Covid bad debt provisions, but a) I am confident these will be less than 2020 and b) actually they may already be over-provisioned already and are trying to be cautious. In any event, 2022 should see operating profit growth AND normalised provisions so 200p eps achievable.
My position is getting disproportionately large but I hate to trade given massive spread and among largest upsides in bank sector (now that clearers and Virgin have recovered). Set an alert at 1300p. Knowing my luck they will find a fraud and price will halve.
44p dividend... ya beauty... this was down around the 6 quid mark but has shown LTH's what a great share it is
Strong results - eps coming in at 87p compared to estimated 60p. 48% hit on PBT but almost entirely due to covid impairment provisions.
Results tomo, looks like the market beleives it...
Technicals looking good too and average price target is 1389p.
It will be interesting to see how true this is: "As the Group has made further positive progress since the Q3 trading update in October, the Group expects that the full financial year 2020 results will be materially ahead of the upper end of consensus profit before tax".
Too a little longer but now it's well back into double digits and blue skies ahead