Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Steve
Yes spot on - where I am concerned - whenever and wherever I invest in a share you just know what's coming.
All of my puchases come with warnings to all other PIs LOL.
To be fair I think robleo does a lot better.
Just be grateful I don't have a full portfolio thse days as the damage could be horrendous.
I'm just back with a tiny ISA, and spread over 4 shares already. Looking to cut it down to 2 or 3.
Was expecting a little trade here when I bought 4 weeks ago, but it's as dead as a do-do.
Not sure whther to just sell before ex div and use the cash on another unlucky share. Not a good balance to have DLG, LLOY & PSN in a 4-share p/f.
Cheers & GL guys - C
Ho Robleo
Agree there mate - it's really got stuck in the mud.
Recent history (2 yrs) shows the SP does not recover well after ex div date, but the SP is much lower now so hopefully it will perform better.
Around the 250p mark has provided good support overthe last 3 yrs, although the top of the chart has shown a number of lower highs suggesting we are in overall downtrend. hope the 250 provides support and we move back towards 300 after ex div, but it may be a slow climb up the worry-wall.
A nice divi over 5% (for this one alone) - better that leaving it in bank.
GLA - C
Earl
"The buyback has been an outstanding success ....... etc "
May I ask who for, as I cannot see it !
From an old Moneyweek posting:
A very ugly practice that could ruin your returns
Share buybacks have become all the rage recently. But they do nothing for shareholders. Instead, they are all about lining management's pockets. Bengt Saelensminde explains why, and how to find companies that are truly acting in your interests.
Sometimes I wonder whether company directors even like shareholders.
This week I saw a number of companies partake in a particularly insidious activity one that does very little to serve the interest of their shareholders.
I'm talking about a share buyback.
Over the last ten or twenty years, share buybacks have become all the rage and I don't think it's just coincidence that they appeared at the same time as management incentive schemes.
Today I want to explain why share buybacks serve management well, but may leave shareholders worse off. Once you understand the trick, you'll see what to look out for in companies that are truly acting in your interests. In fact, I'll even point you in the direction of a few.
It's about management lining its pockets
With a share buyback the company buys its own stock in the market, as if it were just another investor. Once it's bought the stock, it cancels the shares. It's as if the shares never existed.
Why would they do that?
Well, the management tell us that it improves earnings per share (EPS). If earnings stay the same and you reduce the number of shares, clearly that's true. It's simple really management shells out your money on shares and hey presto the accounting figures look better.
But we all know you can't just magic up better earnings figures without making more profit. This money comes from somewhere and that somewhere is your pocket. So why do our representatives play along with this?
Well, here's my theory. These days a major part of remuneration comes from share options. To see how the proportion of CEO pay has changed over the last 20 years just look at this chart.
The green box represents long-term incentives (LTI's); they were practically non-existent 20 years ago. So how do these incentives work? Well, generally they're payments that are triggered by hitting EPS targets and options triggered by hitting short-term share price targets.
Clearly there's a massive incentive for management to enhance EPS and hit short-term share price hurdles. As the chart shows, these incentives are way more important to management than their basic salary.
But hang on, I hear you say. Isn't growing EPS great for shareholders too? Isn't it what we all want?
Well err, yes. But at what cost and over what time frame?
The problem is, it's the shareholder that pays for bumping up the share prices. Management raids shareholder cash to buy stock. And just imagine the City traders rubbing their hands when they see an announcement that Mug PLC is about t
Meanwhile
1. Victor gets to buy his shares as SP dropped below his 46.1p target.
2. The SP continues to fall (down approx 8% in a week)
3. LTI & HU argue over whether SD should be included in the buyback. It does not matter as the plan is to buyback £2B of shares for cancellation (before taxes).
4. Irrespective of the idea being that the buyback rewards us investors, I have yet to see any benefit ... ever .. at all... with any buyback. This is because the SP will move on any day for any reason with or without buybacks. Please please ask the board to stop throwing money down the loo and reward us properly with a special divi or an increased ordiary divi !! (in my dreams LOL)
So how low will the SP drop before it recovers ?
My plan to buy at 45p (almost there) and sell at 50p (seems a long way to go now) and repeat two or three times this year if we get lucky.
GLA - we need a lot of patience with this nag (dog) of a share
Cheers - C
LTI
Thanks for that. I understand the theory, but the reality is what Mr Market says we can buy/sell for.
There are so many other things that affect the SP on an ongoing basis that buybacks get drowned out.
Just give me a special divi of 2.8p (well over 5% of SP) and I am a happy bunny.
I just don;t understand why any small PI thinks buybacks give them anything.
Only two things matter
1. the SP
2. The dividend
Lloyds has been a disaster for about 15 yrs. I first bought at over 550p in 2007, when divi was about 33p p.a
Roll forward to 2022 after numerous RIs, splits, etc and we are at approx 47p with a 2p p.a divi.
Just hoping I can make a nice trading return of 10% at least twice this year. (Buy 45p, sell @ 50P) and maybe bag a 2p divi into the bargain.
Cheers & GL - C
Livestock
So you would call it progress if the SP was 30p and divi 3p = 10% yield.
Its not progress when your share has dropped 26p (over 35%) in 5 yrs.
The total return over 5 yrs is negative.
Since the results date 24/2/22 the FTSE is up approx 3% despite all the bad news with RUS/UKR.
Our SP was over 50p early Feb and its ok to spend £2B on buybacks.
Why is the SP not higher when we are 25% thru the buyback program.
Please please give me a divi instead. so I have some return.
Sorry just cannot agree buybacks are any use at all to the small PI.
Can only hope the SP wakes up. I am not expecting miracles but looking for something better than bank interest rates and maybe keep up with inflation (which is temporarily off the rails ?)
Thanks for your reply - at least its nice to have some sort of sensible discussion - too much other stuff on the chatboards.
Cheers & GLA - C
Hi SUF
Not sure at all that buy backs are any help to the small PI.
I would much prefer excess cash be give to shareholders via increase divi or a special divi.
buybacks do not give anything to us. The SP will move based on market conditions, not on buybacks.
The buybacks seems to work far better over the pond - where SPs tend to climb on such news but not with the dreary FTSE100 shares. Just look at the FTSE index vs any of the US indices over the past 10/20 years and you can see how badly we lack progress.
Cheers & GLA - C
Must be a good 50/50 chance.
Tax year end might encourage some selling, just in time to buy the dip before ex div.
My plan FWIW, is to trade around the 45-50p range.
Already got two small batches - one to hold (hoping for 60p) and one to trade.
Ex div 1.33p on Thursday, so may need to reduce range by one penny to take into account.
If I can make 10% excl dealing costs twice or 3 times a year, that is pretty good going.
GL everyone
Cheers - C
Also just to say even after a divi has been approved and gone past ex-div day that it can still get pulled if the compnay decides it is intheir best interests.
Many years ago I had shares in Northern Rock awaiting divi payment after ex div date. It got pulled as the company went bust.
Not expecting this company to go bust at all, but it is possible they decide to withhold or cancel this divi if it is needed to secure cashflow. Latest indications from the Board suggest it will paid as planned. Let's hope they can do that !
A 52c divi should be a massive catalyst to drive up the SP.
GLA
Cheers - c
Probably easier to take in cash and reinvest in this or something else under your own control.
If you opt for divi reinvestment with your broker they will automatically purchase shares at whatever the market price is when the divi is actaully paid (due around 27th May).
Hi robleo
Would have thought around £22 is a good step on the ladder - similar to my £23.25 last month before the divi would put us on an even keel. Mind you £9.95 + SD on my little batch takes my average cost to £23.76.
At least it's only £4.95 to buy or sell this month as racked up 10 trades last month (due to panic with POLY)
Cheers & GL - C
Hi Dan
It's much like the LLOY SP - bloody hard to make any profit when you are restricted to long/buys only LOL
I've added a 2nd batch of LLOY today and as us picked the top to buy at 47.24p - I real am a genious as a contrary indicator LOL.
Oh well next plan is to offload DLG which is also struggling to get into profit in time for ex div on Thursday.
Pretty sure DLG will drop near 10% on Thursday if I continue to hold, and will magically stay flat if I decide to sell.
I seem to have Robina's habit of jinxing any share - there's plenty of us around LOL
Will have a look at VOD chat after work - just to brighten up my day
Cheers - C
Thanks LTI
But knowing my luck I would sell at 50p and then watch the SP fly to 60p.
And never get chance to buy back at lower SP.
Wish I had enough to hold core batch and a trading batch.
I am not called CSDI for nothing - Crap Share Dealing Ideas LOL
Hi Robleo
ISA is with AJ Bell
Fee is 0.25% p.a - upto a max of £3.50 per month
Dealing fees are £9.95 per normal trade.
£4.95 per trade if done 10 or more in previous month.
Also has a £1.50 option for purchase on a pre-determined date - this month is 11th April - so I might try that to top up LLOY after the ex div drop.
This is much cheaper than 0.9% p.a with my SIPP (as below £30K). Was 0.4% p.a bw £30K and £50K I think.
Trades were £15 each over there, so AJB is a big improvement - esp when dealing in little £500 batches.
I would have liked to move more of my SIPP into an ISA but needs must - dictates debt/mortgage should be paid off in priority order.
Cheers - C
Hi Robleo
Not sure if this link works - but I think you use it anyway
https://www.dividenddata.co.uk/dividendyield.py?market=ftse100&sort=yield&order=1
It shows the highest FTSE100 yields currently as
PSN, RIO, IMB and then all the insurers you alreayd have.
My track record with HY shares is pretty shocking, but you never now - one day I might get lucky
I am certainly thinking of adding to PSN as the current risk/reward looks good.
Of course you will know when I buy as it guarantees a big fall LOL
Take care and good luck
Cheers - C
Hi Dan
Sorry but not investing here yet.
Only got a few quid in a newly opened ISA - as still draing my SIPP to pay off mortgage/debts.
Just tryingto keep a little bit (approx 5K) to keep me in the markets.
So far I've got about £500-£600 worth only of DLG, LLOY, PSN, & POLY.
Looking to trade LLOY for a while (45p -50p range) and then look at maybe trading VOD later on.
I will be ditching DLG to double up on LLOY. Then add £500 to either PSN or POLY shortly.
Hope to add £500 p/m to take me up to total of £5K.
POLY is a double or nothing gamble.
Just liike to keep an eye on the banter in here - nice to see a bit of fun - compared to the rubbish sprouted on other shares LLOY and POLY.
Cheers & GLA - C
Any chance we can talk about shares of LLOY on here please.
If you want to discuss other stuff please use other chat boards - it's what they are there for
My dilemma is whetherto hold or trade LLOY.
Was hoping for a 50p+ SP last week, but it fizzled away.
We have the 1.33 ex div on Thursday - any chance that will push the SP before then.
My average cost is a tad under 44p, as only bought in small on 4th March.
Would like to trade to increase the number of shares based on idea of sell at 50p, buy at 45p.
Will this work or not ?
Cheers - CSDI (Crap Share Dealing Ideas)