Member Info for Da_Matser

What drop?

Great subject line BTW

BBL initiative seems to have fizzled out and no mention of the truck cartel.

We are always exposed to price movements. The only concern with a buyback is not paying too much, so price falls are welcome during this time.

Directors don't always make the best investors. Personally, I'm a better investor than I am a director :))

Phew!

My commiserations to International Paper shareholders.

@ggplyr A FinTech listed on NYSE with a P/E of 7.5 would get an immediate upgrade. The Yanks do not do P/Es of 7.5

This is what BUR (Burford Capital) did and it's worked a charm. One thing they had do was increase HY reports to quarterly, which is a bonus.

Just praying MNDI doesn’t increase their stupidity.

https://www.lse.co.uk/rns/SMDS/statement-re-possible-offer-rokcdjt85tb1a1g.html

@tommy15 T212 just said they have "recently adjusted all of the limits". They also 'adjusted' CRL (another AIM stock) so I can't buy them either. Yes I have mirror portfolio on ii so have been buying on there, but cannot top up on T212 so not exactly a mirror any more! It does make me wonder if some manipulation is going on?

I suppose given the terrible spreads on T212, the likes of MANO and CRL have never been that attractive on the platform.

So we have investors on here hesitant to average down and I - like thousands of others - can't buy any more in my Trading 212 account because of the ridiculously low cap of 554 shares; yet we scratch our heads wondering why the price is going down???

Hope not Krusty. HFD have very little tangible BV, cash and return ons. I wouldn't touch them with a barge pole, so don't want acquire them indirectly. I've had enough of this with MNDI merging with SMDS (RNS today).

Good oil + used oil = used oil

Commercial real estate vulnerable due to ongoing fear of another banking crisis? Only thing I can think of. SFR has been hit hard too.

https://www.euronews.com/business/2024/02/08/is-a-commercial-real-estate-crisis-unfolding-across-europe

Not sure where Robbie Burns gets that yield from. 3.5p of divs over the past 12m. At an ask of 53.8p, that's 6.5%.

It doesn't help that Trading 212 have capped a MANO allocation to just 554 shares, so it's all one way traffic now.

In pence/cents terms, yes the div will increase. However, so has the SP. Thus, the yield remains comparable.

Only thing I can think of is the US banking crisis affecting commercial real estate but SFR are well diversified?

It did start heading south after TATA announced the decommissioning of its blast furnace last month but surely it can be that.

Also, we’re in between dividends so perhaps that’s softened appetite.

I’m open to any other ideas!

Not sure where you're getting 20 from

Yep. Great predictions on the share price. lol.

I hate to break it to you but a rise in dividend because there’s less shares is not going to happen. This is because they’re returning the funds from the Russian assets to us. As said before, a buyback would have increased EPS and therefore DPS.

Any company could swap 10 shares for 11 on any given day, which would rescale the share price but MC - and critically your share of the MC - would not change.

It’s more confusing because they did it at the same time as the ex-date - and now we have this potential merger in the mix!

I’m glad you’ve learned a lesson about the dividend. I was accused of being arrogant for suggesting this when I saw you mention it in an earlier post.

Hopefully, you can buy some dips and get that average down. And hopefully they won’t ‘overpay’ for SMDS. It already got 10% more expensive today.

@velladean Look at what happened to RDW and BDEV yesterday. It's usually good for one company and bad for the other.

That said, it is largely down to how the share capital is split and as this is in the early stages there has been no indication of how it will be split. The market is expecting a swing to SMDS:

e.g. MNDI MC is £6B and SMDS is £4B (for ease). However, IF, FOR EXAMPLE, they exchanged 50% of the combined share capital for all of SMDS shares that would be a 25% gain for SMDS (40% to 50% of the combined share capital).

Personally, I think SMDS looks a great undervalued company and they have been on my watchlist for some time. I'm happy to acquire them via MNDI but it all comes down to how that combined share capital is split.

Of course, the deal might not even happen at all!

In any event, I have spent a large chunk of my RDW profit on MNDI today. I sold RDW as I'm not happy with joining up with BDEV (very poor performance and valuation) and the share capital split worked in our favour, so I ran for the door taking a 40% gain in less than 5 months.

You don't totally disagree with me as your fact of giving up 9% of the quantity of shares is just another way of wording it.

Another thing I think we agree on is the SP has fallen further than the 9-10% it should have going ex - over 16% since Fri 26th.

I was simply hypothesising as to why it has oversold by 7%. I discussed this with my son over the weekend and I suggested also that the downsizing was probably baked in.

It's a pity you thought I was being arrogant as I always try to contribute in a positive manner and have tried all sorts of ways of explaining the situation but believed I wasn't making any progress, so simply stated what I believed was the core issue.

I do agree that a buyback may have been better received by the market. If not, the company would have benefitted from buying back shares at a depressed price. But I also understand why the board took this alternative action.