The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Oh I am definitely collecting the dividends here. Just don't want to have too much in any one company. Was just trying to plan ahead what to do with next months pay. Might look into another sector. Perhaps housebuilding.
Oh dear, would have been better to make the switch out of VOD today instead. I suppose its impossible to get it right all the time.
Does anyone know of any other companies in the finance sector that have similar qualities to JIM. I looked at CMCX but it seems I missed that opportunity. Has almost trebled from its low.
I have sometime to do research today as my boss has a day off and it's a slow day at the office.
Thanks to anyone that can help me. There are so many companies to look at I almost don't know where to start.
A few assumptions there, they are accepting new customers/corporate clients, I phoned up and asked. Also if you review previous JIM results it's obvious even to the untrained eye that the profits are not just made up from interest. The rate may go down over the next 6 months, but it won't go back to zero ever again imo, free money is a silly concept and just desperation from the central banks. Obviously the inverse correlation between higher rates and lower investment in risk assets will benefit JIM, as money is less attracted to cash/bonds and more attracted to stocks as the rate drops (boosting trade volumes, top and bottom lines). If only I could find a company that pays out 12%+ in the 5 dividend payments over the next 53 weeks that provides access to risk assets.
I sold my VOD for a small profit and added, the future prospects are better here, the yield is better and going to be at least double next years VOD yield. Also no debt so if the rates only come down 2 or 3 times no matter.
Enjoy the sunshine everyone, it won't last for long, like this bear raid. Lots of love A.I. Capone
Three reasons JIM is too cheap:
1) The last two dividends add up to 3.25p multiply that by 2 and it yields 6.5p. That is still over 10%. Might come in higher maybe a little lower, still a good return.
2) Buy when others are fearful, this is trading at a level where you would think the company isn't making profit, it is.
3) All bad things must come to an end, eventually the FCA will have to complete their report and this should be a catalyst to the share price rising once the uncertainty is removed.
I only didn't buy more because I wasn't sure if they were going to do this dividend, but they have. Now people are paying 63p and I paid less than 61p. So I was right. Might go up more today yet. I value this share at 75-85p at the current dividend yield. All buys today so far so I think others also agree this is too cheap. Wish I had bought twice or even four times as many. I bought some VOD and BT yesterday so now I can't.
Bought £500 worth this morning, it's just a small position but I think I might be able to make a couple of hundred quid by the weekend. I don't really trade small cap stocks, didn't even know this company existed last year. 61p just looks too cheap, but I've not really got the conviction to commit thousands of pounds. Probably regret being a coward tomorrow. GLA - A.I. Capone
Nice one, thanks for the advice. I will continue to monitor the three companies I have on my watchlist for next week. JIM could go a lot higher if the investigation is less bad than anticipated and/or the dividend is maintained or raised. VOD I like the buybacks and dividend for the upcoming year, but not the debt. BT has a issues as well, but in the long run it must be worth more than the current MCAP and the dividend is quite good also. I only have enough cash to add two positions from these three, but can add some riskier shares to my portfolio as I am well up on my other trades at the moment and they are all more reputable FTSE 100 companies. I can't see BATS or HSBC doubling anytime soon though, nor any of the others. That is why I am interested here and in the other two, slight inclination toward JIM and BT atm, might do a half position in each and then make the strongest horse the full position when more certainty has appeared. I have the weekend to think about it. Thanks for your help.
Bit disappointing no one can make a case for investing in this company, I have decided to wait until the next dividend is declared. I would rather pay a few pence more and be sure the company is back on track. I have the 9th of May for the next dividend declaration, is that correct? Many thanks to anyone that can be bothered to reply.
Thanks for your reply MM99 and to xxxAc, it is certainly a lot of ifs, buts, and maybes with VOD. Am I right in thinking the dividend will be about 5% for the next two payments, or have they only committed to holding the level for the summer payment? I understand the level will halve for 2025, but I actually see that as a good thing, should help them to pay down the debt quicker. I think I am going to wait here and hope for a cheaper entry price. When I was a small boy in the 90's my dad would teach me about the stock market and VOD was one we used to follow. Seems like it is a shadow of the powerhouse it once was, so I think you are right about them returning too much cash to shareholders. I still don't have anything in the telecoms sector though, BT also has issues, AAF I don't really trust the books and the region they operate in seems deeply unstable both politically and economically (Nigeria's currency is a worry). Good luck everyone.
Thanks for your reply, I have been doing more research on this. I wish I had just bought as the price has popped up while I looked into the company more. Still looks good value for me, but I wanted to get in below a pound ideally. Anyway I will keep BT on my shortlist and hope for a main market pullback, flash crash, or some type of bad news to get my desired entry price, if I don't manage to get it then I have other targets anyway. Good luck to all holders here.
Is it just uncertainty over this merger that is keeping the price down? The share buybacks don't seem to be helping the price, will that change when the board cancel these shares? I am thinking of buying in here or on BT, I might just do a half position on both. There's lots of debt here and that concerns me a bit as interest rates don't seem to want to come down. Do VOD need to refinance much of this debt in the next year or two? I am also worried the FTSE 100 might have a pull back in the summer. Should I wait for nearer 60p or buy now? I've only been trading for two years and don't want to ruin my good start by making a bad trade.
I was thinking of adding some BT to my portfolio, I haven't got anything in the telecoms sector yet. It is either this or VOD, I like the buy backs but not the debt there. I also want a good company in the financial services sector. Looking for dividends and hopefully a rise in the price. Why is BT struggling so much when the main market just keeps going up?
I'm fairly new to share trading. I want to build a portfolio with different sectors to spread my risk. I have copper mining, gold/silver mining, banking, supermarket, insurance, and tobacco already. Now I am looking for something in the financial services sector. This one seems to offer a nice dividend and looks to be near the bottom of it's trading range. Does anyone have any thoughts about if this will be a good company to buy into?