The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Krustysmegma, the problem would be that the bank account from where cheques would be drawn does not have the cash present! Part of the point of the merger was that it required no cash outlay, and it would save on transaction costs versus buying properties individually. It also allowed CREI holders to benefit from assets at discount.
Guitarsolo, It's not the same as HFEL. The company invests in some ultra-high yielders such as Diversified Energy, Imperial Tobacco and Petershill, so the dividend is covered, but you should understand there are risks associated to a manager gunning for yield in this way. Some investments can see capital values suffer (Diversified Energy is an example!), hence the capital performance has been lacklustre.
But, all said, I want an allocation to a manager who is aggressive on yield, and I think some of the underlying companies are pretty decent. Some of them are a bit speculative too, in my view (I believe Petershill probably is a bit speculative) so it's good to have these "punts" in a fund, because I wouldn't want to invest money in a company like Petershill, directly.
This trust does what I want it to do, as part of a larger portfolio. I think buying at these levels could be fruitful for anyone willing to press the buy button. But again, what the heck do I know !!!
it's just another example where fund managers take gains, shareholders take losses. custodian capital (the fund manager) wanted this deal because it would significantly increase their fee income over time. now that they've failed it's us shareholders who'll suffer the cost, not the manager. now that custodian have lost their credibility, the share price will now trade below nav and make it impossible for the company to raise capital. our company is now also suscepible to buy out; possibly below fair value.
a complete and total **** up.
Did anyone notice this financial highlight in the annual results announcement on 25th March:
"To align Princess with the broader listed private equity universe, the Board agreed for the Company to discontinue the hedging of currency exposures from 1 April 2023."
Oh right, so it didn't have anything to do with the fact the board were responsible for losing 60m Euros of shareholder capital. What was it may father once told me about leopards and spots....
Hello Guitarsolo, my view on this one is that it is an absolute bargain. Buying at these levels means you get a portfolio of high yield, undervalued stocks, at a discount!! And with a covered yield of 8.3%, not sure what's not to like if you are an income investor. Past performance has been poor, and if you bought at £3.75 like I have done, you'd be pretty fed up with the total return performance. However, my view is that both the price point and discount on this trust are compelling. Buy hey, what do I know !!!
This is a gift that keeps on giving. Total dividends per share for the past year were £1.73 through my interactive investor ISA. On today's price of £22.57 the yield is 7.6%.
And the news get better. According to Just ETF the quarterly dividend that is about to be paid will be £0.48, being a 23% increase on last year.
Love this ETF. Let's hope it remains a secret, so no one spoils it for us!
Pj14, just buy more. If the market is being dumb, take advantage.
Can't really see how you could go wrong buying more at these levels, for a long term hold. A near 8% yield and buying at well below NAV. Whilst not ultra low, the LTV is acceptable and doesn't pose inordinate refinancing risks. The manager, whilst not shy about making their fees, does a better job than most.
I am optimistic about CREI after losing a lot of money on Highcroft Investments (HCFT).
I love it when markets are irrational. Just topped up. Thank you Mr Market for delivering me this bargain of the decade.
CREI share price has taken a hit from the initial knee jerk reaction, but I'm not too concerned. The CREI managers are quite competent, and whilst they will benefit over time from higher management fee income, I don't believe this deal is motivated (purely) by greed.
Initial impressions are it's a good idea. CREI shareholders get a share in the new property assets at approximately 25% discount to NAV, yielding well in excess of 7%. Economies of scale will reduce costs and increase the available cash flows for dividends. I think it's a win for everyone. I have been a CREI holder for many years.
Correct. Forced sellers at bargain prices to those who will enrich themselves at the expense of others. This is a strategic displacement of private investors in favour of "the establishment".
An utter disgrace, in my opinion. The share price has gyrated between £6 and £8.24 since the announcement, with fearful investors selling well below NAV. The board should be ashamed of themselves. There was no precursor to this announcement, with no mention of onerous listing costs or regulatory burden in prior reports. The announcement is also thin on detail. How much money would be saved in moving to TISE in listing costs? We don't know, because they haven't qualified their claims with actual figures!
The board makes the point about the liquidity of the shares, but what have they ever done to proactively improve the company's exposure. On searching the web there is thin evidence of any sort of public relations effort. No interviews with the CEO or engagement with EO Platforms, that I have seen.
To me it does not matter what the outcome of the vote is. I no longer trust the board. A board willing to make a sudden change of this magnitude with no prior warning is not a board for me. Fired!
The board believe this is in shareholders best interests because it is significantly cheaper to be listed on TISE, and the governance requirements are not as strict. I do not trust this reasoning. The board has not mentioned these issues in the past, and the company has always sustained the cost of a main market listing. So my question is, what is the real reason for the desire to move to TISE? What is it that the directors want to do that they would find difficult to do while listed on the main market? Frankly, I am disgusted with the board. The ethos of the company has always been prudence and ethical conduct - the way to demonstrate this is with a main market listing.
Ha ha ha, Argadargada, my cage is indeed well and truly rattled - by laughter. Is the person who gave me the tip down the pub the same person who told you that Mike Kerley has been running HFEL for the past 40 years? I'm pleased you've stepped on to the fact train, but please stop digging the hole deeper. On second thoughts, please keep going - you're hilarious.
Well, the ship has steadied a bit. I have held my nerve and continue to hold. Will I regret it?....
This Global ETF focuses on companies that pay above average dividends, but at the same time have healthy "plow back" ratios i.e. retained profits, so there is a quality emphasis, too. Dividends have increased over time and I have confidence they will continue to grow. Happy to hold and forget.
This ETF focuses on US companies that pay above average dividends, but at the same time have healthy "plow back" ratios i.e. retained profits, so there is a quality emphasis, too. Dividends have increased over time and I have confidence they will continue to grow. Happy to hold and forget.
Argadargada, a completely moot point and you're snippeting what you said to protect your ego. Mike Kerley hasn't managed this trust for 40 years, and if you're happy with his performance during his tenure from 2007 you should perhaps see a financial advisor, or if you have a dog they might be better placed to make judgments on your behalf.
THE SHARE PRICE AND NAV IS LOWER NOW THAN WHEN MIKE KERLEY ASSUMED RESPONSIBILITY FOR THIS TRUST IN 2007; 16 YEARS AGO.
Does anyone else want to put their hands up and declare their delight in Mike Kerley's perfmormance?? Perhaps you should send him a gold watch, Argadargada? I have an idea for the card:
"Dear Mike, I enclose herewith a gold watch to celebrate your amazing stock picking performance for the last 40 years, since 2007. In this time you have, somehow, managed to erode the capital over your entire tenure. Many congratulations, and happy retirement. PS. My dog thinks you're a failure, but I don't listen to him".
Argadargada, Have you had a labotomy? Mike Kerley hasn't been the manager for 40 years and the trust hasn't even existed for this amount of time. Mike Kerley's stock picking (or trading) has brought the share price and NAV down to levels not seen since the global financial crisis. If you think this is something to be happy about, then perhaps go and see your GP about possible delusional disorder.