Member Info for bald_eagle

"Investors here need to realise this is a low growth but very solid business..."
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A low growth solid business paying 7% dividends.....that is incredible. Especially with interest rates at zero. Almost too good to be true....why aren't income investors piling into LGEN and driving the SP higher?

There was some guy on TV yesterday talking about Christmas prices (presumably for toys & stuff) shooting up this year....whilst looking at the 'Evergiven' container ship docking in UK (the one that got stuck in Suez canal). So inflation is going to continue to rise....especially with petrol pump prices currently at 8 year high.
Question is how long inflation will remain high and what damage will it do.
Central banks will want to keep interest rates low to support businesses. At some point something has to give.
It's almost like we are in a honeymoon period at the moment. People (in UK) are happy that virus seems under control. But at some point we have to come to terms with the costs that have built up and how we are going to pay....some creative accountancy I foresee.

Why shouldn't I be confident in LGEN?

I almost crashed the car when I passed a BP station other day and unleaded was 144p. Something has to give. OPEC increasing production.
Shell must be printing money.

https://www.bbc.co.uk/news/business-58076604

Seems to be edging towards £15....the impossible! A couple more days of this and we will be almost there.

"You can invest your money with confidence here guys"
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What a strange thing to say.....usually sets alarm bells ringing. That young oily salesperson who seems slightly too eager to secure the sale, "Don't worry sir, your money is safe with us". Why should I be worried?....what aren't you telling me?

"If the board believes the shares are materially undervalued, it makes sense to buy them back"
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Doesn't it depend upon what they want the share buy-back to achieve. Perhaps it is 'simply' to reduce the number of shares in circulation & hence increase EPS (cynical people may suggest that BOD bonuses are linked to an increasing EPS...but what do I know!)
Some companies may buy 'cheap' shares and store them in treasury....then when/if SP rises they use those shares to purchase a third party company that adds value to the business through synergy or new markets. It's all about leverage.
Buying back shares & cancelling them shows a lack of imagination, it is the safe (boring) option. I suppose banks should have people in charge who are slightly 'boring'....perhaps that is the problem with Barclays over the last decade, the leadership (eg 'sparkling' bob diamond) were investment bankers who liked taking risks & encouraged staff to sail close to the wind. Perhaps it is OK to be boring if you run a bank!?

MrA, you've got me sussed. Alistair is a red rag to my bull.

All the best...BE

".... to experience a movement attempt."
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Mr Strang(e) really needs to eat more roughage, that should unblock him.

As far as I understand share buy backs the purchased shares go into 'treasury'. So they are an asset of the business. They can be cancelled or used for another purpose (e.g. used to purchase another company).
I believe (although I may be wrong here) whilst in treasury the buy back shares effectively do not exist so the nominal 'value' of shares in the market increases i.e. EPS increases.

Agreed, it would be nice to be treated fairly and not just an afterthought.
The real problem - all banks but especially BARC - is the cost of misselling scandals & illegal actions in fines & compensation. BARC has been mired in scandal after scandal....a never ending stream of dodgy dealing. If they could concentrate on doing legal business to create sustainably increasing profits and with that a true progressive dividend policy. The investment banker bonuses are a slap in the face (but probably unavoidable), but ultimately if shareholders thought we were getting a fairer slice of the pie we wouldn't be so unhappy.

Distribution of the 'profits' - especially at investment banks - seems to have been skewed towards the big name investment bankers rather than shareholders (IMO)...same with premiership football, big name players get the wonga & 'supporters' get treated like cash machines. Chicken & egg. A club without supporters aint a club.
Personally I feel like we are getting the scraps....even a jaffa cake once in a while would be nice!

Will RDSB ever get back to the 'way they were'? Seems there is some debate about whether companies & individuals will return to the way things were pre-pandemic. I suppose the same applies to Shell....what type of company will emerge to face the future & what are the pressures on it in the years ahead. I expect the management have more on their minds than just dividends & yield....although to investors it is quite important.

"When they cut the divi they did say there would be a greater proportion of cash flow returned to shareholders via buy backs and divis once debt was paid down"
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Which is what we are seeing now....surely!

yes, they are talking about a booster jab in the autumn. Heard the Isle of Wight residents are first in the queue.

"There is a possibility that the earth will be 'dissolved' into its nearest sun in approx 5 billion years time. It is hard to kill a planet."
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I need to start checking the wording on my insurance policies from now on.

"save planet earth.....is the earth in danger?"
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It's hard to kill a planet.
I heard a 'scientist' being interviewed this week....could be the end of 'civilisation' (according to him). Not sure what that means....no more Big Mac's perhaps!!

"In Yield terms, though, it is roughly 75% of the figure at 31 Dec 2019, as it is being paid out from a lower share price. In annualised terms a 24c dividend would be about 4.8% yield, compared to a 6.3% yield for the year to 31/12/2019."
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Lutra, isn't that a 'chicken & egg' scenario?....dividends are roughly half what they were pre-pandemic. But yield is greater % because the SP is lower.

I suppose the big question is what Yield (or dividend) are the management aiming to maintain over the coming years. Are they aiming to return to circa 47c per quarter?!....which would probably drive the SP higher. Chicken or egg.

I suspect 47c per quarter isn't realistic....but what should we expect? Is 24c the new 47c?....I could live with that but others would want more.

BB, all the airlines are in the same boat (or should that be airplane!!). The weaker airlines will fold. IAG has a buffer that gives then breathing space but even that is finite. There will come a point where the message to politicians is simple...unlock or lose the passenger airline business.

Airbus & Boeing must be really suffering.

IAG will continue to lose money until the world is sufficiently vaccinated to allow foreign travel to return to somewhere near 'normal' numbers...we ain't in that situation yet. The SP is probably more attuned to that unlocking than any profit & loss (we all knew there was gonna be a loss). The UK has allowed fully vaccinated US & EU travellers to arrive without the need for quarantine, perhaps when the US reciprocate it will be a sign that the great unlocking has begun. Problem is that countries around the world are at different stages in the pandemic/vaccination story. If the UK unlocking is successful perhaps it will be seen as a sign that we can learn to live with the virus.