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.
Re the 100k quantity, not every single can be the same with a 5000 quantity or 10000 etc. It depends on the funds you have free to invest. A sizeable holding is relative.
I see on LSE talking about 250k bets or more, that is great if they can, but like me most do not have that much to risk in one company.
Rizzel,
Happy Easter đ°
Simple example.
Suppose you buy quantity X thousand shares in a company and then sell 60% or more on a rise you are left with 40% shares at a reduced average cost.
Say 10000 shares in VANQ at 50p, = ÂŁ5037 (incl stamp, buying and sell commission @ ÂŁ6).
Share price rises to 60p.
Sell 60% you have 4k shares left averaging 35.9p
Sell 70% you have 3k shares left averaging 27.9p
Sell 80% you have 2k shares left averaging 11.9p
You can vary the selling %, a lot depends on the move or the news.
If you have patience & more funds you can build up a useful position at a cost below the range.
If you say are stuck with 2000 VANQ shares at ÂŁ1.30 (price before the recent fall) you have paid ( incl stamp comm) an average price about 131p.
Never realise the paper loss, use a side pot to add low average share, eventually you may turn you position around and back to profit with no loss.
Not a recommendation nor for everyone, tax free in an ISA.
You could hit lucky with a bid or the company itself may turn around. I have found working average down on a position gone wrong a very useful strategy.
HTH
Mx
This would be comedic if it wasn't for the sp collapse
"Mr R complains that Vanquis Bank Limited continued to send him paper statements after he
had requested to receive statements online only. He says this has caused him a great deal
of stress."
Wanted ÂŁ500 compensation, unbelievable, says it all, system is broken
Great link, just looked at the first 3 on there. All rejected but obviously cost vanq 750 a pop. And the cmp are in my.opinion phising for compo. They need to get some thing in place tomstop ambulance chasing companies
Hello Mary, I am a long time holder suffering big paper loss atm. I am reading everything here and elsewhere regarding this company. you posted this yesterday
"Personal target for me is to get a sub zero holding of around 100k averaging 30p or less and hold forever."
can I ask how do you get an average price of 30p or less when the share price was never that low?
BTW, FOS publish all decisions that are made by its Ombudsmen, which is the final âappealsâ part of their process (so doesnât cover all complaints it receives.
You can see all the Vanquis ones here, including if they were upheld or not.
https://www.financial-ombudsman.org.uk/decisions-case-studies/ombudsman-decisions/search?BusinessName=Vanquis+Bank+Limited&Business=178
Long overdue consultation I think. I know plenty of people who work at FOS and I think itâs fair to say that theyâre almost as sick of spurious and generalised claims from the CMC try it on merchants as we are. Vanquis alone are suffering from the sheer number of these, so imagine the sheer amount of workload FOS will ultimately have to deal with from across the industry unless the FCA puts a formal redress scheme (which we wonât be involved in) in place.
Totally agree Divid
Watched the strategy presentation back last night and overall quite impressed really.
The management team appear to be from a diverse background in finance and have some good ideas about how to attract new customers through branding and digitalisation methods.
I imagine many customers in the âstruggling but managingâ demographic will welcome the snoop app to help them better manage their finances. This will also attract new customers.
The biggest issue I can currently see is around how to mitigate future spurious claims. That is a big problem at the moment and has obviously hurt the share price. I know they have initiated a legal challenge against one CMC, but if your business is open to receiving an uncontrolled flow of ÂŁ750 admin charges for each claim, this is clearly a problem and you can tell that Ian knows it.
I have loaded up with shares over the past week as the short terms issues will be resolved in my opinion, but it will take some time. I wouldnât expect the rebound to over ÂŁ1 until next year. After 10 years of decline, and many fingers burnt, some investors will take some convincing. But for the longs, this looks like a good 5 year investment.
As the only player in the sun-prime lending market, Vanquis have the monopoly and if the new management deliver on their vision, could see the share price 10x over the next 5 years.
Yes it may give a short term boost to the SP and no doubt youâll make a few bob in the following days but I think most serious investors are looking for a consistent flow of climbing profits. Letâs be honest the last lot purchased a modest amount but it did bugger all for the SP .
Over the Easter the market will cogitate, deliberate and digest the excellent March 27 debrief.
New managements pitch is that there has been a hard reset and from this point on VANQ are going to move forward into broad, sunlit uplands.
Significant and wide ranging director buys would give this narrative a considerable credibility boost.
Management sitting on their hands would speak volumes about a different reality.
It's so wet here even the horses don't want to go out!! They've had enough.
Hope you built the snowman.
We had snow today here.
Oh, and the short is reducing. No surprise there.
Yes I have a holding here Mary. After taking an initial loss I went back in and subsequently have averaged up.
Enjoy the rainy weekend!!
Guinness
I suppose you have a large holding here? đ¤. I outlined my thoughts in the previous post.
Interested in views of others.
The directors see value. I do wonder about approaches coming or already being considered.
Opti
All was well presented and answered yesterday, the Vompound and I even managed to have our 8 questions answered directly đ . I liked what I heard and even added another 25% (30k shares additional shares to my holding today. My risk.
Summarise my thoughts
a)The 3rd party claims issue
# Mainly one CMC involved and a legal letter now sent
# staff time and fees per spurious claim
# will persist into 2024
Resolution
# low number of valid claims
# discussion with FSA .. they are determined shortly on the fees and may change the structure change where companies such as Vanquis pay lower tiered referral fees (big boys pay more) rather than one fixed fee
or proposal for the claimant company to pay the referral fee upfront.
b) Product pricing and new products
#Past product pricing, a loss leader to gain volume included an example of an eye-watering -68% return
When Ian McL started management took corrective action and starting to bear fruit in the H2.
# clearly stated yesterday that pricing has been resolved and going forward pricing has been set for contributions to yield a positive ROI
# New products are ready to be launched including ISAs and 90 day /120 day products.. to be rolled out next week.
c) banking with a heart and 'not yet' rather than a no
Great for those needing credit which other banks ignore or debunk. Some of the videos showing were gut wrenching but genuine. Not everyone is fortunate and a simple help with ÂŁ300/400 product to build a payments history will give many the helping hand needed.
# credit cards are screened and 80% applicants are turned down, but Vanq can offer alternatives from their products.
d) Customer mix, less risk
# the new products will bring in more retail savers. I have been with Vanq for over 5 years as a savings customer. Only had one issue, while not pleasant at the time, was resolved and compensated.
Management
# the old management team have gone, no one believed them.
The new team are tackling the issues head on, proactively and have a clear plan. Seems to be the sensible NI input Ian and Jill(ian) plus a few Southern Irish. All with great experience. They even stopped staff bonuses. Ex Bank of Ireland CEO now in charge.
e) snoop
A fabulous apop with great potential... đ. Allows flexibility to roll changes same day making business more nimble.
Any I choose to believe what was presented yesterday and the path we are now on is the right one. A few bumps to come of course.
Personal target for me is to get a sub zero holding of around 100k averaging 30p or less and hold forever. At current prices my 1p dividend can buy me another 2800 shares.
Not a recommendation, just a view. Adding and trimming.
Happy Easter
Mx
GLA.
I think we may see that next week and redwood increasing.
Nice weekend.
My last post on this thread addressing some of my own comments of the 26th.
- VANQ are not a genuine 24 carat basket case (though previous management were heading in that direction on auto pilot).
- thankfully new VANQ management did not follow the traditional route of their predecessors and failed to disappoint.
- whilst the turbulence of the past few weeks has made me fill my sick bag I do accept that the turbulence was due to factors beyond the control of the flight crew and indeed we have a top notch flight team.
There now follows an interlude while the market cogitates, deliberates and digests the excellent March 27 debrief.
New managements pitch is that there has been a hard reset and from this point on VANQ are going to move forward into broad, sunlit uplands.
Significant and wide ranging director buys would give this narrative a considerable credibility boost (and vice versa).
Patience my dear friend⌠this stock is a wee bit out of fashion but like all things what comes around goes around., only a good dose of balance sheet profit will take this ugly duckling on the wana buy list again.. just be patient market sentiment outweighs fundamentals.
Looking for the wisdom of the forum. Some things I don't understand here. The price earnings ratio (p/e) is currently about 2. Typically you'd expect 8 to maybe 14 ish. The assets are about four times the totality of the share value, the company is expected to make a profit if not this year then next, they are re-pricing the interest rates on certain products UP not down as I wrongly surmised, but the price doesn't really move much. The complaints thing is a storm in a tea cup. (I know it's going to cost a few quid but they say they don't have a significant problem to worry about other than the cost of cases going to the ombudsman) What am I missing?
Muck165 posted this yesterday and in the excitement was overlooked, I think - Good Posts Muck, ahead of the game!!
Quote âProfessional representatives play an important role in resolving financial disputes. However, twenty percent of cases are brought by representatives, some of whom benefit commercially at scale, yet more than half of such cases are not upheld. It is therefore timely that we explore whether our fee structure is right for the current climate and best reflects the costs we incur in helping resolve disputes for customers. âWe welcome all views from industry and consumer groups on our proposals on whether and how a charging regime might work in practice.â We are inviting views on whether and how a charging regime might be implemented, including on the level of any fee itself; the impact on complaint volumes, the potential impact on different groups of complainants, and the lead time required for businesses and professional representatives to be ready.
As this consultation is seeking early feedback to inform next steps, no assumptions on the potential impact of charging professional representatives, or the possible revenue derived from such a scheme, have been included in the proposed plans and budget for 2024/25. The consultation is open until 30 January 2024.
1. The Financial Ombudsman Service will publish its final plans and budget for 2024/25 in April 2024 after it has been approved by the Financial Conduct Authority.
Expect news next month and a more positive outcome in the Q1 trading update 18th May - I think, could well result in a revised upward forecast for 2024 (Claims budget costs reduced). .
After the optimistic vision shared yesterday,
does it mean, that the major risk (for those who have average higher 100p) except the claims issue, would be the hostile takeover bid?
Someone mentioned the question was raised to the management... any statement from management on the topic?
I suspect Goldman overhang still clearing . Need Redwood Capital and significant director buys to clear supply and then we have green light to 100p first stop.
BOD Forecast ROTE at mid-teens equals to around 100m profits in 20 months time. That's substantial relative to the current market cap. Patience will see share price rebound to more reasonable levels. IMO,DYOR.
I asked them about directors buys yesterday during the webinar.
Response as follows: He's been having "Internal discussions about this topic currently and not going to comment on individuals, we do see VALUE in where our share price is at the moment."