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That’s not true, many have existing clients out of exit penalties but still retain the clients. I don’t think you fully understand the charging structure and what mainstream ifa’s charge, who are often paying more overall.
In addition they also have the ability to take clients on with no initial fees with only ongoing advice fees which is still adding funds to SJP and in practice more profitable to SJP immediately.
SJP charge big exit fees, so once people leave, they ain’t going to be go back to it again. Customer retention is the way forward. However, all the partners buy the book from partners selling out, so they will be crying as there own little internal business has lots 45% in 6 months. Now they have to double down, not easy when you’ve based your lifestyle and paid out for a business which is going to generate less when everything around you is going up.
There are two main issues here as I see it:
1. They have to cut fees and this reduces the profit margin and potentially compromises their business model.
2. There is a lot of negative press covering excessive fees and this may lead to a client exodus.
As I see it sentiment will not turn around until (2) is addressed and we don't know where (1) will leave the financials hence the selling. I think the shorting opportunity has passed but I wouldn't buy here.
800 million market cap drop on news that the company is looking at price charges!!! Hope we don’t get any bad news
Yeh if everyone who knows where bottom is can just share it on this board that would be great. Unbelievable!
My thoughts too ....500 possible ....also looking at CRDA .....well down atm ....at least they manufacture & sell something !!
Hi guys, is it supposed to be the bottom or are we thinking it going into 500's!!! Very worried. Though it seems nothing wrong with the company, a respected wealth management team
I didn't quite qualify for JRA/SJP founder partner shares as I missed the boat by a few months but I did buy a good lot at around 80 to 90p.......sadly sold for small profit on exit. wish I'd kept them. TBH I am surprised the profitability and therefore SP has done so well.......thought it would be harder to profit so well from tighter regulation and fairer charge pressures. I went the IFA route.....sadly you don't make huge profits.....by providing best advice and low fee structures...lol.
I think we're back to about 10 years ago (SP wise)....but I am looking here for the first time in 30 years......so I guess I may be seeing value.....may take a small position.
Didnt think I would get more under £7 and this will recover after panic selling.
Although there are problems I believe the SP of 700p provides good value so I have therefore take a decent position.
My stop loss triggered last week, kinda glad it did.
There does seem to be more than a whiff of panic around this share now…..
It has not changed its charging structures fundamentally for a long time and has seemed to ignore certain regulatory changes (eg cant charge more than 1% exit charge on a pension…..but they think it is ok to call it an early withdrawal charge of up to 5%).
SJP partners have done well out of their rich clients (as have others)…..a 1% annual charge for no change to the portfolio / confirming investments remain appropriate does not really deliver value for money for most clients.
CEO is going, CFO and CRO/CCO will surely be next…..Fitzpatrick needs to change course quickly and that will mean upsetting the partners and shareholders…….(shareholders have already taken a beating).
It didn't trigger but came within 4p or so of my 800p stop loss.
Hope it hasnt Ubik, need to hold this one. Personally bought some more as its in oversold area. Just happens to be caught up in FTSE 100 sell off.
Highly likely my stop loss will trigger today. Good to have a lower boundary and prevents me from going into an average down spiral.
Some interesting practices here. Hope the link works.
www.telegraph.co.uk/money/investing/trouble-st-james-place/
Fisher investment on phone today claiming 20% net return on year .
They claim better for investors then STJ as no share holder conflict , customer reviews for both not good.
Some positive read across from HL results today, which weren't awful.
The trouble for Wealth Managers is that they have tended to look at STJ as something of a role model….
Cruises as incentives…..
High charges…..
Many of the FCA crackdowns could be directly aimed at them as bad for treating customers fairly / lack of duty of care……
STJ will need to change and deliver much better value for money….it will be better for customers but bad for shareholders until the turnaround has been achieved.
Fitzpatrick has his work cut out to turn this around
Cost reductions are likely to come directly from profits and there isn't that much headroom in income to support larger cuts.
Sentiment in the press is definitely against them. However, long term, not like SJP is about to disappear and it seems attractive at these levels. I have a stop loss set at 800p just in case it continues to drift. If so, the punt doesn't work out and I take some loss. So it goes.
Just googled news on STJ - fairly easy to find is a comment from post the last results from Numis analyst which says ‘the fee change maybe just the top of the ice berg’ - being the revised charges going forward - def more credibility than my view
I don’t really give credence to your short position. Good luck though.
Although the FT piece at the weekend is pretty damning - it is the hundreds of comments within the FT about the piece and their views on this company which are worse and give the issue even more credence
My estimate is we slip to 400p. 20% profit cut and the balance a reduced rating as the issues play out
Hope this is a board that accepts two way views….
Just kicked off my holding with a sell
I have followed this stock a while, in an era of zero interest rates using an STJ to come up with some clever structurings might have had a place in life even if an investor could stomach the fees BUT in a world where a cash investor can get 5% min falling off a log STJ’s raison d’etre is far reduced.
Throw in a proper stewards (at last!) about their clever charging structures … newish blood for the journos who won’t give up now on the subject
I am not into general shorting but where it is companies like STJ then it is game on who have charged many many grannies the wrong fees for many years it is fair game. This is one of those straight to the bottom line profit reductions when revenue drops …
Throw in some shocking fund performances … the current rating could soon look extremely expensive and the viscous circle will begin compounded by trackers reducing as the market cap shrinks
Role on Oct 18 next news