They have been pretty much up front with the current position accepting it `s been a bad year capital wise .I bought into this share for income which has increased .They have analysed where things have gone wrong and the reasons why and now feel this coming year will enable them to get a more balanced income/growth portfolio taking money from reserves to support the dividend if necessary as I read it. I`m sticking with them.
I don`t see how you can blame management for the lab error. What would concern me more is the fact that we recently raised money before this error came to light. Could the investors in the placing now claim compensation ?
I don`t see why LGEN should be held responsible for the level of risk taken by individual pension scheme managers in respect of LDI schemes. LGEN only advise as I understand. It`s up to the scheme managers to set the level of risk they accept.
I`m happy with the drilling arrangement.The shares to be issued at a quite large premium based on the information at that time when it was considered that the chances of a find was high. The Drilling company made a commercial decision which may or not be in their favor when results are known. I can`t see why they would be too stressed out if it goes the wrong way for them. The choice was theirs. It helps us keep drilling costs initially low and helps cash flow which is important at this time.
I would like to think that the Scheme has been set up now because PJ thinks there`s every chance of success at Molopo which would give the qualifiers a decent reward. I have no problem in rewarding success its good for team morale.
On the surface this share looks very good value. With rent collections at the last count running at over 98% ,interest rate charged on borrowings capped at 3.5% and a discount on NAV around 35%, and giving a yield of over 10% at todays price .