Member Info for AngelsOneFive

I’m pleased to say that mine are in a tax wrapper, otherwise I’d be staying out until after the xd date. I’m interpreting the “special” dividend designation as signifying its one-off nature. Otherwise it would make it appear as having a >60% yield. atb

For good background, seek out the writings of OakBloke on Substack who has done a good overview, both as SALT and as a component holding of TEK.

I’d really like to have sight of this promised 24p/share payout from the Pendragon car business sale. I don’t have the exact date when the sale completed as all the PDG RNS’s have disappeared from LSE since the ticker changed to PINE, but it must be at least 6 weeks now. It’s a bit frustrating.

Anyone buying now is basically having to stump up the equivalent of 24p per share to cover the future payout from the car dealership sale (of 24p). That’s a bit of a pain. When the payout is announced and then goes XD I wouldn’t be at all surprised if the SP falls by less than the 24p as an investment in PINE will be a much cleaner option. atb

After the 20% WHT the October divi was about 33p. Same again would mean a 15% yield at SP of 431p.

Despite this being a fairly simple business to describe ie. Dig it, move it, sell it, there are a surprising number of hidden variables across the two areas (continents) of operation.

atb

The PDG car business sale already completed and I’m assuming PINE (formerly PDG) is currently sitting on the cash awaiting distribution. You will notice a big fall in the share price at ex-dividend date whenever that happens. We will get an advance RNS from PINE with the date. PINE is essentially already trading as a software only business, because the car business is already sold. Hopefully was sold along with any possible liability to mis-sold car loans, should that turn out to be a developing problem.

atb

Hi, Pendragon essentially sold itself to Lithia for £367M but leaving Pinewood behind. The PDG listing became PINE with Lithia taking a stake too and the £367M will be distributed from PINE as a 24.5p special divi at a future date TBD.

So it should all be tidied up soon, but you’re basically buying PINE at about 10p per share when the divi is taken into account.

I recommend the Oak Bloke article in the previous post which gives a much better explanation than I ever could.

atb

Some background info from the Oak Bloke Substack a few weeks ago. Link below.

This is not advice.

https://theoakbloke.substack.com/p/introducing-pinewood-technologies?utm_source=profile&utm_medium=reader2

I bought in here 3 years ago when there were 600M shares in issue and the price was about 15p and heading north. As of now there are 3715M shares, a 6x increase, and the price is about 2.4p or about a 6x decrease, but heading north again.

So, newcomers still paying a similar price for their fraction of the company as I did 3 years ago (but I’ve since been diluted x6).

However newcomers are getting a stake in a proven discovery rather than one in a hopeful drill.

I wish I was a newcomer!

atb

Another LTH here. In about 3 years with a few at 28p. Averaged down and swapped into ISA (for all those profits!), but drill strings, engines and bits kept breaking. Timing! The newbies at 0.25p are having all the fun I hoped to have myself in 2021. And good luck to them. Luckily I’ve discovered I’m strong enough to hold through a 97% drop and start the climb back up. I’m glad to hear of the LTH who have bought more post raise. No island in the sun for me, but certainly now have a chance of coming out evens.

atb

About 25 years ago I read an investment book (The Zulu Principle) with the premise that if I read up about a subject eg. Zulu’s, then I could become informed well beyond the understanding of the average person. Jim Slater, the author, applied this to growth stocks, but the idea could apply to any investment. As I’ve read through the DEC announcements and the multiple contributions from Mr Oak Bloke blogger I find myself feeling a lot more “Zulu”.

I don’t know what the future will actually bring here, but I’m much better informed about the possibilities.

atb

I think one of the arguments for buy backs is the effective cancellation of future dividend payouts on the cancelled BB shares which equates to debt at >20% interest.

atb

Musing on the likely dividend to be announced end March and paid in May.

The last 4 divis per share actually paid after WHtax into my account (nearest penny) have been 73p, 240p, 143p and most recently 33p. So, officially “all over the place” The October divi dropped from 240 to 33, so an 86% drop. If we apply that to last May 143p we arrive at 20p this May, or 53p for year, or 8.5% yield (after WHT) at today’s price.

Is that realistic, or way off?

atb

Re: your reference to Post Office scandal.

(From memory) IDS operates Royal Mail deliveries not Post Office Counters. Different companies. Liability for the scandal will rest with PO Counters owners, which I suspect is some arm of government.

Apologies if my memory is not 100% correct.

The Interactive Investor ISA only does things in Sterling, so things like $$ divis will just appear in your account as a ££ amount after being converted. I think ii also charges a little bit for converting too. Whereas in my ii SIPP the $$ divi stays in $$ and so I could choose to reinvest in $$ without converting both into and out of Sterling unlike in the ISA.

atb

Yes, divi paid into ii SIPP with no tax taken (I did the W8Ben form) BUT it shows as settlement TODAY and system won’t yet let me trade the value. FYI

As I hold DEC in a SIPP, I’m expecting the divi to arrive end of month as USD rather than GBP. So, assuming I decide to buy more, any suggestions on London v New York? There’s the cost of conversion into Sterling if I buy on LSE, but currently London is 11% cheaper per share and I assume no stamp duty in USA. Should I be expecting this 11% disparity to narrow, or is it anybody’s guess? I’m leaning towards LSE as the divi is the same per share wherever I hold it.

atb

With only 190M shares in issue and possibly another 5M+ due via the CLN’s (thanks Cautious for the numbers on Nov9th) I’ve had my calculator out again.

The cost of 0.1% of the company (assuming CLN’s drop) now stands at £8200 for 195000 shares or a 1/1000th ticket of the entire company.

I have bought my ticket. I wonder if it’s Golden!

atb

I’m looking forward to the Simply Wall Street (AI generated ) analysis of the DEC share price action. Something along the lines of “DEC shares are in the top 10% risers in the O&G peer group”.

atb

My conclusion from the discussion about a week ago was that the most dividend efficient way to hold DEC is in a SIPP with W-8BEN tax form completed (full dividend) followed by ISA + W-8BEN (15% withholding tax). Some bank owned brokers and smaller brokers apparently take 30% tax. It might be that a trading account + W-8BEN with a decent broker also loses only 15%. Main point is to know your broker’s policy.

atb