Member Info for damofarl

2 of 2;

Which CLO do i prefer? I don't, FAIR, TORO, BGLF etc have their own merits, styles. I just have most in FAIR proportionately, as i topped up when they dropped irrationally.

What consideration of currency do you make? If i'm honest i dont. Because my view is that i'm holding CLO stocks for 5 years +, i sort of feel that it will work itself through; what i lose in transfer to GBP might be a gain in profit origination. If I'm honest ive not looked into it. And maybe i should, because directly or indirectly, about 70& of my portfolio is US$ dollar related.

To round up, i mentioned STCM as a high yielding stock; i'm a big fan, and if you go to it you will see a big gyration on disappointment/misreading of the recent RNS in the last couple of days. I've held for 4 yours and basically it's a 10+ yielder, in a very boring industry in a less developed/emerging county/politically affected environment. I believe that its consistent fireworks free continuity is supported by the need for concrete to build the infrastructure, roads, houses, hospitals of a developing nature. There was a delay in dividends recently (due to taxation changes/
STCM's tax avoidance culture) but now resumed. Te SP has gyrated wildly in the time i have held, currently SP positive but very yield positive, but if you consider as long term for the yield, you will disregard those SP fluctuations.

Oher high yields; if you are not adverse to currency considerations i am a fan of US Midstream oil companies. many of whom pay around 8%+; i like the visibility of their earnings, getting paid for volume through their pipelines, irrespective of oil/gas price. The certainty, 'utility' like of say United Utilities but at a higher rate.

A particular stock, whilst not currently a high yielder i am a big fan of, and overweight for me in, is JXN, the US pension/annuity provider spun out of Prudential. It currently yields around 5.5%. The reason i'm such a fan is i believe it will in short term (about 3 years) become a 10% yielder with considerable SP appreciation towards such. I believe it is so so undervalued. Do be aware that unlike the spread on CLO's you can get a tight price, but it does seem to gyrate quite wildly often within a day or a week 5 to 10% - it's 'shorted' position is quite high to what we see in the UK, albeit quite normal for the US, which i think drives those gyrations. Personally this is MY greatest conviction stock for the next 5 years. I am heavily invested in high yielders with no/minimal SP movement, which i'm happy with. This i believe can be a high yielder AND an SP appreciator. Take a look, look at the numbers. Marketwatch.com is a great site to do so, along with the US midstream companies.

Views my own, not a reccomendatiom etc blah blah blah on all ive posted, but i hope my thoughts help someone.
As for FAIR, i remain a fan, remain uncertain that their buybacks have best value, acknowledge that they are picking them up cheap. A special divvy i

Happy New Year to all FAIRy's (!). 1of 2

I'll try to answer/give my opinion on some of the questions asked here - apologies for the tawdry response.

Firstly have to say i've been thinking about FAIR and its ilk since the update from DLG yesterday. DLG is a favourite amongst high yield seekers and whilst it demonstrates the value trap that seemingly all high yielders can be, it, to me, also demonstrated that supposedly high risk stocks such as FAIR aren't actually so high risk - especially within the context of mainstream high yielders, and being part of a wider portfolio (albeit i am top heavy with CLOs/high yielders). I hold DLG, took the hit yesterday, but still hold. Believe in it long term, but i have to say, to cancel your dividend because of one weeks poor weather smacks of poor mgmt hence i have no confidence in them, so i hold not because i believe they will turn it around, but because i believe someone will buy it to do such and i'll recoup my loss on DLG.

I say this because it brings me to answer a post about 40% drops in CLOs SP's over 5/10 years, i.e. are they value traps. Well if you are going into them for SP appreciation yes. And pretty much always. The nature of the beast is they pay out heavily regularly so they are never going to grow SP wise. I hold 5 pure UK CLOs, and 4 are down SP wise an average of 10%, 1 is up because unlike the other 4, i trade it's predictable (large) gyrations. They have been down SP wise since day 1. But the yield has more than covered that - the first i bought, BGLF, is now a free ride, and FAIR is nearing there. To answer the question, i would ask one. Would you rather a esoteric high risk stock that loses 40% over 5 years whilst paying 70% divvy, or a mainstream 'safe' stock such as DLG that has lost 50% of its SP whilst paying out 20% of it's SP?

Other High yield recommendations was a question. I don't give recommendations, just try to give insights. Yes i'm top heavy CLO's as a percentage of portfolio, but i'm actually mega top heavy high yielders. Personally i like a decent wine today, every day, not the promise of endless probably illusionary champagne some day maybe, maybe far away. so i'm a value investor first. I work on a 10/10/10/10 basis. I want a business/stock that has a yield of 10%, that has net profits of 10% (+ and ideally 20%), and a price to equity of 10. The last 10, is my strategy of targeting 10 stocks yielding 10% (ideally higher) on the basis that if 1 TOTALLY failed i would not be at at a loss. Most of my investments are high yield, most 10%+, but not all. I like solidity, continuity, not growth. that said i'm in a number of below 10%s that i believe will grow to be such. No recommendations, but in the higher range i'm invested in, believe in, MNG, DEC, GNL, IMB, JUP, RIO, NRR, PSN, PHNX, PMI, SEPL, TW., VTY and STCM. You can see many are in unloved areas (housing/fund mgmt/fossil fuels). My contrarian value style believe will come good, whilst reaping high yiel

raydio; post of the week that. So refreshing in it's consideration and honesty. And inclusiveness.

deepjoy; it is paying 10 months rather than deferring; as said by another here, astute move as maintains headline price.

1) May
2) Feb
3) none
4) none
5) July
6) Dec
7) Feb
8) None

from the latest factsheet.....

'Credit remained broadly stable in the portfolios invested in the Toro fund with no new loans becoming distressed during the month and a significant improvement in pricing and tone for the weaker names we are tracking in the portfolios with several of them up 5-10pts during the month.'.....

thanks itsalottery; i agree with you.

do you have a link to the dividend announcement, i'm struggling to find anything, anywhere? Appreciate a link.

gary59; i agree with you, and do so out of positivity for the fundamentals of PSN, and the sector generally.

Whilst i thought HB's SPs a year ago a bit frothy/top end, the correction, panicked drop in SP reflected in builders like PSN has been knee jerk and irrational; going from 10% overpriced, to 40% under priced which isn't rational.

Yes there will be less house sales/lower prices/less margins/less profit, but that isn't the same as loss making/bust/unprofitable which the market has priced in. The Company has cash (land) at hand and isn't indebted, there is still a national shortage of homes, and it is still cheaper to buy than rent.

Personally i'd be happy with a final in March of 80p explained as 'prudent management, balancing the current economic environment with returning value creation to shareholders'....this would reward long term holders whilst being patient into a more certain 'business as usual' environment, reassure the markets that PSN are managing volatility/costs/cashflow/reserves and that resumed profits/dividend will reflect in due course. And PSN's record on paying out of profits (cash) that exceed expectations is good.

sphinx100; good post that. Yes they will find a way, if not to increase sales, to maintain them.

strictlybricks; agree, still a modest profit whilst seeing out the maelstrom - and if you take PSN's figures from that mortgage broker link - their offer which i think shows great pro activeness to support there sales, is attractive both to buyers and them - maintaining a margin/throughput of sales to support the fixed overheads.

A shrewd move, which demolishes the woe worrying seemingly prevalent in HB watchers/holders . Sitting tight me, ignoring the noise, following the numbers/actions.

Notice someone playing with silly trades to walk this SP up.

Hard one to call this; although dividend announcement/payments move here and are not fixed, no is the zone that any might be announced; inconsistent, but where they have made money they pay them out. The interims were a bit mixed, having lost $21 million, but mood music about selling out to reduce risk, and taking advantage of the current opportunities. Question is, have they? If they have, and whilst sitting on $40 million cash (half of their mkt cap), i can see 3c here. If continued to lose/struggle, zero. We shall see

gavster-nbc; i think you have misunderstood MY view, namely that Marble is less attractive now. 1) dividends will cease within the larger group; 2) as the SP is at NAV, and the founders are moving to well remunerated roles in the larger acquiring Investcorp, i don't see them fighting for a takeout premium - even full SP.

FAIR; aye, the buybacks.....not a fan, but they are compounding value (presuming business is business as usual). At some point with the comfortably covered fixed dividend, that has got to mean a special dividend as SP appreciation/NAV reduction hasn't materialised, and that is the only option left to realise shareholder value to holders, the rationale for the buybacks.

valueS; spot on re payments - just another reason why this is being held back. If the KRG can't make timely payments when their elevated receipts are considerably above what they could have budgeted/expected a year ago, it hardly instils confidence.

Hi Gavster,#; the issue was not uncertainty as to MPLF itself but to its takeover by Investcorp. While the takeover RNS is vague, it's absorption into a larger group meant uncertainty as to whether dividends would continue. MPLF's founders joining Investcorp in senior (promoted, well renumerated) roles meant with the SP at/around NAV there was unlikely to be takeout SP uplift, and probably no divvys, albeit (surprisingly) i note they have just declared their latest.

mick2020; much respect to you for all you are doing on this.

can't speak for an ISA but zero in a SIPP

Kentio; quick answer no, but will respond more to that on TORO board in due course. SP loss on MPLF highlights a big downside in this sphere, if you have to sell (if held less than 2 years you will always incur a loss).

As an aside, fan of NESF myself.

kentio; no, nothing specific/RNS'd, just my view. Reading the announcement, it's being merged into Investcorp. if it wasmajority share owned on an arms length basis, the yields could continue but not from within Investcorp. The marble founders moving to take up a new role as Head of Investcorps CLO's etc led me to that conclusion.

gavster-NBc; indeed! I do keep chuckling when i think of this constantly labelled high risk/professional investor only whilst looking at my mainstream/FTSE 100 high yielders that have taken a full on basin haircut this year!

Hi Kentio; I also hold BGLP, and whilst the yield there is lower than here/others, it was my first CLO type stock and is now a free ride for me.

Marble is being taken out in 1Q23 by Invesco, not a situation i'm happy with, as the 'merger' nature of it means the loss of a consistent high yielder AND no takeout premium - i mention as it these types of stocks often have very concentrated (controlling) shareholdings, and as such that concentration can be a risk, as they could take private without premium/fair value, and you are at their behest. The flip of that, i find, is, these holdings are often family trusts for high net worth individuals who don't sell on gyrations as they are in for long term tax efficient dividends. Take your own view on this, but i do notice a commonality of such across these stocks. Because of these high net worth investors/trusts i don't see any takeouts where NAV discount could be captured back by small investors.

TORO - i have more here than there, but i like TORO very much; i like the dividend yield link to NAV and that unlike most that are very concentrated in the US, there is a wider geographical spread of origination. I also find the monthly updates, and refreshingly honest and informative.