The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen 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.
Now in here with you Craig...at what seems like a price that is too good to be true...I've bought not at 30% higher but surprisingly at an even bigger discount. The market has clearly not liked today...and our question now is what is it expecting /seeing here that we are not? It's clearly not liking something in a very big way...
Was surprised that even deposits increased...will that continue as rates have gone even higher since the end of June? Is that impairment truly a one-off? Big questions, but I think worth a starter position as things stand.
Ive invested long term on this, balancing out the portfolio and spreading risks, I never tend to trade short term, todays results just reaffirm what I was hoping.
Dividend inline with the Group policy to return 25% of earnings to shareholders, if figures continue as they are , we should have a great yield buying in at these prices.
Yes the one large impairment is the stick out but ālessons learnedā
Looks like a very strong business with lending increasing 8.2 % under uncertain times.
Arrears stable at low levels in Consumer Finance divisions
Expect significant improvement in profitability during the second half of the year through loan book growth and cost leverage.
Very good to me
Look pretty decent to me...if not up 30% straight away I will hope to take a position. Difficult to know what reaction will be like given what headlines look like with the large one impairment which like it or not, crushes this years statutory earnings. But this doesn't look like it should be 0,3x BV...
Other peoples thoughts?
Decent set of results, Divi maintained at 16p.
Share price looks undervalued significantly with a stronger H2 also expected.
Take a look.
Its a fair assumption to make...and frankly I could see this up 30% tomorrow on relatively good news. I just don't know because of course this is a very complex investment which requires knowledge of their book and deposit health. It could be a fantastic bet and one I've now been considering for months and do kind of regret not betting a little on tomorrow...
Some smart investors like Ennismore have bet big here...definately not a fools errand, just felt to me like there was some macro risk - things have got quite a bit worse over the last few months so their outlook is also key tomorrow.
Wishing holders the best of luck and will be watching keenly! It was a choice between Secure Trust, One Savings Bank and TP ICAP - in the end felt like with TP ICAP you should have the greatest benefit with interest rate volatility and its also incredibly cheap (albeit in a different way to the banks)...will be quite interesting to see how all 3 fare in the morning.
Iāve taken it has the risks are priced in already.
These risks explain why the share price is half where it was last year so to a great extent priced in? Thatās the judgement you make investing now. We should know more about the outlook tomorrow but the company seemed upbeat in May. Will they have seen any deterioration since? We should find out tomorrow.
8% div yield also attractive but will that be maintained? Letās see.
Itās a great write up yesā¦.but punting on this is a huge macro riskā¦Iāve been looking for a long while now and just cannot take the plunge. Itās unsecured lending in what is looking like a more and more pessismistic backdrop. A poster yesterday hit the nail on the head highlighting the deposit risk as wellā¦itās quite significant. Why leave money in secure trust when you can go to someone risk free or government and her higher rates?! It doesnāt make sense and there is a real risk of outflows alongside all the unsecured credit impairment riskā¦
Iām not trying to be negativeā¦.this could be a superb investment. Just feel like itās too risky as of right now and the Midas touch doesnāt exactly delve into those clear risks!!
Https://www.thisismoney.co.uk/money/investing/article-12375969/MIDAS-SHARE-TIPS-Secure-Trust-Bank-winner.html
Brilliant write up on this is money, tomorrow should see a decent trading update.
Up 5.4%! This guy is a genius. Iām going to be following his recommendationsš
Run conservatively but can get hammered by new car financing options entering the market and UK consumer bad debt write-offs hit, even in previously credit worthy customers. Its also harder to compete for customer deposits vs the big boys who have upped their interest rates in the past 1-2 months.
This explains the share price as it discounts the bad stuff about to show-up in next 12-24 months results.
Added a few last week, looks a solid buy, 8% yield at current prices too.
Back in March you raved about BWNG at 32p using your accountancy prowess. Now it's 23p. Enough said.
Looked @ this for an investment for the last 6 months - and come to the conclusion to buy @ Ā£6 per share getting around 8% dividends and the business per latest results has done well and yet as far as I can see the share price has never been lower in 12 years.
My hunch is that when they release the 6 months results possibly next week. this will be up a minimum 25% over the month after results day. I'd love people to come back to me on this comment on around mid September to tell me I'm the next Warren Buffet.
I'm also going to start making some predictions every now and again so people can see if i'm the worlds worst investor or if i have some sort of aptitude for this share game. Please feel free to look back on any comments i've made in the past. PS i've not posted on here for sometime
I may be being incompetent, but the NAV is massive cf. the share price...surely a disconnect somewhere.
Last time I bought a bank on a generous discount to NAV, it was TSB and they were swiftly hoovered up, alas, and below NAV.
I think its better than OK. The business looks strong but the sp stays not far off all-time lows.
Looks a solid buy to me.
Secure Trust Bank #STB FY22 results overview by David McCreadie, CEO
https://www.piworld.co.uk/company-videos/secure-trust-bank-stb-full-year-2022-overview-march-2023/
PTP +28.1% (pre impairments) Ā£76.1m
Total PTP Ā£44m (cf Ā£36.6m)
19.1% growth in lending balances to Ā£2.9bn
500bps improvement in cost income ratio to 55%
Tot divi for yr 45.1p
Outlook in line
IMHO, it was a good deal and this is a great buy with decent yield and good risk management. If they raised now it would be a good chance of it costing more than 13% p.a. given what has just taken place in US. Even if totally unrelated a small bank like STB would feel the knock- on effects.
Each to their own. I buy on further weakness.
Borrowing Ā£90m at 13% for at least 5 years if not more is more akin to equity than debt. And as the debt cannot be bought by retail investors, they should avoid buying the real equity IMHO.
Dude I've had similar problems trying to open a new account with HSBC. When I rang them I was left on hold for 40 minutes, not just the one time too.
I gave up on them also and switched to Starling bank, who had it done within 48 hours. And they actually bothered to answer the phone in under 5 minutes when I called them.
These old banks feel like dinosaurs in comparison to the challengers.
That said, it still feels like a relatively safe investment here. Can't see any good reason why it shouldn't be trading at Ā£10+. I'm holding until we get there.
I am a shareholder and have been for two years, however I am currently not happy!
Both my wife and myself have tried to open an ISA account and a savings account having Ā£40k to deposit. After going through the online application process, it finished with a message. āWe just need to do a few checks and will confirm within five working days. 6 weeks later and a call to customer services, and we have taken our business elsewhere. As a shareholder, I am amazed that a business with 15% YOY expansion plans, canāt even process new account applications!
The share is seriously unloved.
Have no idea why (considered too dull maybe?), but it's also seriously undervalued. Easy to see a doubling here over the next 12 months.
A very capable presenter and so far appears to have done a solid job as CEO. Looks capable, which is reflective of the relatively high level of remuneration, along with the sector specialism, CFO also has a solid background and appears to be a safe pair of hands. If you want a decent CEO/CFO you have to pay for one. I will follow this with interest. I have started with a small holding. It looks like there is value here, but those metrics can change in extreme conditions. This could easily double or more in a 5 year timeframe - all the usual caveats. I also noted that Lord Lee or Trafford did (and assume he still does) have a holding here.