Member Info for Archy147

I'm holding on to the hope its a)

The share is seriously unloved.

Have no idea why (considered too dull maybe?), but it's also seriously undervalued. Easy to see a doubling here over the next 12 months.

Nice one damofarl , thank you for your detailed response.

Hadn't clocked the dividend had fallen, but still, it ain't half bad at 16.4%!

I'm in here now, alongside TORO. The spread (especially on TORO) is an irritant (Not nice seeing your holding valued at a few % down the instant you buy) but your mindset of seeing that as a price worth paying for the recurring dividends makes sense.

I'm now thinking of adding more. May I ask what % of your pf you have invested in this arena?

cheers

Jongal you've gone from "Strong Buy" to "Sell" in a month.

What has changed your opinion so radically?

Personally I'm considering buying here as the price is looking cheap (still haven't made up mind yet though).

Geez this is rapidly turning into the biggest dog in my portfolio....will the tide ever turn??

Hi damofarl, I've found my way here after investing in TORO (thank you for your welcome message there!).

I thought the divvy on TORO was market-leading, but am pleasantly surprised to be very wrong about that. The dividend yield here appears to be 20% - wow!

Having looked into what these companies are all about, I found this quote on Money Week:

"It is vital to note that investing in CLO funds is high risk. Still, if the funds keep providing returns in the 10%-20% range (most of that in dividends) as they have done, then a bad year (or two) might be worth it to get access to the extra returns from all that financial engineering."

I must admit to not really understanding what CLOs are all about, or why they are considered high risk (far too technical for me)? But from what i can see, the dividend here has been a good 10c a share going back to 2014 (bar covid year). That gives confidence that the dividend is sustainable.....but what about the share price? That has halved over the same period. Any ideas of the reason for that?

Finally, I found this statement on the September :

"We continue to believe that the 18.0% dividend yield offered by the Company, supported by a high-quality portfolio of primarily first-lien, senior secured loans with very attractive term, non-mark-to-market financing represents one of the most attractive risk adjusted opportunities available to investors in the current market environment."

https://www.rns-pdf.londonstockexchange.com/rns/8355Y_1-2022-9-8.pdf

That statement is about as big a "buy" signal as I could hope to see on a company announcement. Would you agree, or have I missed anything?

This is great news, surprised it hasn't pushed the price up.

I'm convinced anyway, have doubled my holding here today.

Studies show that less than 5% of day traders make money, so its not to be recommended to most investors.

I hold both OTB and HFG too and certainly recommend holding both. HFG has become a deep value play with its unfathomable 60% fall over the last year, despite their revenue growth and expansion plans.

OTB I see as a growth stock with massive potential. They are a strong, progressive company, gaining market share. The world is not going to stop going on holiday because of the so-called Cost of Living crisis. Inflation, as it always does, will soon revert to mean. OTB is (still) available now at a knock down price that doesn't really take any of this into account.

Ps what nonsense were the MMS playing yesterday? They dropped it about 15% early morning yesterday, now we're back to above the original starting position! Bunch of jokers, don't know how they're allowed to get away with it.

I'm at a bit of a loss to explain to explain why this is now at a 7 year low.

I can only imagine a new scientifc breakthrough must have been made; one which removes the need for the human body to consume food, with people able to get all the nutrients they need through taking a single pill instead. That would explain it.

If that's not the case, then the market has gone mad and this is a buy/hold with a expected 100% return within 12 months.

damofarl and others for your informative posts on here.

I've decided to allocate a portion of my SIPP to this stock. Whilst I don't expect capital appreciation, the yield here is about as juicy as they come (10% of NAV which is about 13% yield I believe) so it's in there for the regular income.

I had GSK for the same reason, but as this is about 3x the GSK divi it seemed like a no-brainer to switch!

Bought in here on Wednesday and tempted to top up now with the (inevitable) rebound starting.

The one thing holding me back is that pesky GLG partners short. OK they've been decreasing, and other shorters have exited, but why are they holding on to a 1% short interest?

Another thing that strikes me as odd is the fact they seem to have had a short in place here going all the way back to 2018! What is that all about, thoughts?

I have absolutely no idea why this is as low as it is, especially after the positive results.

I was on the brink of buying, then saw there are shorts totalling nearly 2%. That's a big red flag for me so sadly I won't be buying. I have no idea why the shorters don't like this, I just have a policy of not betting against them !

Is the market finally waking up to the massive value on offer here?

Still below the covid low of c76p!

Fingers crossed.

That's better:)

This is the kind of buying opportunity I love (Just like APH last week). I'm in :)

Seems positive to ne but sadly market not impressed?

I'd say bounce to 100p.

That's what they sunk to during the covid panic so is the "bottom" level of fair value I'm seeking.

More realistically, they've hit 155p three times since covid so that's the real target price to be aiming for IMO

Guys I'm a holder here having bought on the dip last month. But struggling to work out what to do from here. Buy more or sell.

On the face of it, it looks like there's still about another 30% upside from here to get back to historic fair value.

On the flip side, shorts are up at nearly 2% and I have a strict policy of not holding shorted stocks.

Genuinely confused by the level of shorting. Can anyone explain it?

Winnings, if you're worried about the potential £10m fine, you're not seeing the wood for the trees.

Over the last 4 months the market cap of the company has declined by over £400m. I repeat £400m!

If you think that's over done, even by just a little bit, then the fine (and indeed the level of provision) pales into insignificance compared to the value on offer at the current price.

Thanks toffeeman, that's jolly decent of you.

There's still over 50% upside from here just to get back to Tuesdays price (ie not too late) :)