The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
TerryM1 I wouldn't be bothered by the purchase at 72 rather than 67, its only for a handful of shares on a one single day. The concerns here are on the long term accounts.
Why would you project the losses over the whole period of the hedge program based on the derivative loss of year 1 and put that on the income sheet?
The more I read The Oak Bloke the less sense it seems to make.
Ddubya thanks for sharing.
I copy and paste a section of the article, thing to understand the formula "+£2-(50px7)-(5x8)p = -£1.90 loss". does this assume that the first year is not hedged? Otherwise the loss on derivatives should he 50px8. Where has the loss on derivatives for the first year gone?
"I sell you a £2 subscription. The subscription costs me nothing to sell.
I always hedge your subscription at £1.50 for 8 years ahead. It costs 5p for each year I want to hedge. So I’m guaranteed a price 50p below current market price
In 2023 my P&L says +£2-(50px7)-(5x8)p = -£1.90 loss. (I buy a hedge for 8 years 2023 to 2031. I have to assume that I will lose 50p for the next 7 years)"
LOTM-13 That's one of the first thing they should have checked when proofreading, having the same error happened last week.
Tennyson Securities non that independent view considering that it is a DEC advisor. I would consider more reliable Jefferies forecast
Pikeman can you please share a link to what you found?
A bit of blue.. at last
Who exactly is Malcy?
@Terry Unloading for no reasons hopefully
Not as calming apparently, according to the market reaction. It may recover with the next set of results, all being well of course.
Rusty must buy the same value of shares as he sold when the share price peaked at $1.30 and have his skin back in the game at the same level as it was before is relatively large sale.
I was expecting a rally today
Why did they purchase only 200.000 shares today?
@Jim800 Thanks for clarifying that for me. I wish the annual report was clearer on this but now it starts to make more sense.
I know this topic may have reached exhaustion but I have a simple and straightforward question:
How did DEC manage to make losses on derivatives if the production was above the hedged volumes?
If it had to buy at spot price, above the hedged price, it means to me that DEC didn't meet the hedged volume with production output.
Did I get this wrong and how?
50% down and still no news from the management, despite a few of us enquiring with IR!
@Wolfbag2 Thanks
Gavster-NBC great finding!
Lukee I emailed Doug in IR two days ago. Silence. I added Rusty ages ago on LinkedIn. No reply.
Something here smells of fish. Glad I am no. I will be glad to get back in if the management shows all the required info clearly unambiguously and verifiable.