Member Info for DramChart

I'm with PHP for the income, together with some other REITs, but I'm a bit concerned about two things. The last time I looked, debt was just over £1.3bn for a company with a market value of about £1.2bn. If some of the profit isn't used to pay down this debt I think they may have to increase the share count again. Since 2019, the share count has increased by an average of 6% a year. The present 7.5% dividend yield doesn't look so attractive when it's offset by 6% shareholder dilution, unless the distribution is increased by 6% to keep the dividend per share the same. The quarterly increase from 1.725p to 1.775p is less than 3%, so any further shareholder dilution needs to be less than half the average historical rate if our total returns are not to be eroded.

If Openreach was reborn as a separate entity, relieved of the £20bn net debt, with management that could stem the loss of connections, I might be tempted to invest. But the Consumer and Business segments seem to be in terminal decline - increasing prices to existing customers to make up for lost ones cannot go on forever. So I foresee a break up, either by present management or following a takeover.

I doubt that ENOG facilities will suffer direct attacks but I am concerned that supply lines could be disrupted. If suppliers and transport links are targeted, how long before production has to be suspended? I don't know enough about offshore gas operations but I'm mindful of the possible impact of reduced output on the share price.

Good point. Yesterday (Monday) AZN said datopotamab failed to reach statistical significance for overall survival in patients with metastatic non-small cell lung cancer.

Anyone have any idea why AV. now has a 5.72% stake in SPT? I thought it was due to delist from LSE and become a subsidiary of Keysight?

When brokers are talking up the SP, it sometimes pays to sell.

Not sure I understand your question. However, the dividend tomorrow is about 2.06%. On ex-div the share price usually falls by at least the dividend, often a bit more. So one strategy is to sell before the ex-d (thus foregoing the dividend) and buy back more cheaply when the SP drops.

Personally, I'd rather they reduced the debt burden.

"I imagine the sale info was leaked the other day when we saw the flick up in share price."

So it is already priced in?

Indeed! Airbus management said: “Rolls-Royce is marginally part of the difficulties as we have supply issues with the Trent 7000 on the A330. But not on the A350 as far as I am aware of. So that’s why we are mainly focusing on the impact of delays of CFM and Pratt at the moment.”

As CFM International and Pratt & Whitney are competitors to Rolls-Royce, it is even possible that RR may benefit further down the line.

I'm happily topping up.

Missed the below 469 at around 11:00 but managed to add at 471 a bit later. Fingers crossed for a bounce back on Monday. Wishing all a good weekend.

Probably just the inevitable adjustment after opening too high on the back of Citi opinion without any supporting substantive news. It could revert to around 471 this pm, just in case any news comes out over the weekend. Then back up on Monday, IMHO - so I might add. DYOR and GLA.

... paying down corporate debt, special dividend $200m

@robleo

Your response much appreciated. BTW typo in my post - LGEN target 224 (not 242!). Just topped up PHNX below 480.

@ realist1, moneybox et al.

Many thanks for your valid comments. I did sell most of my UK holdings, taking profits on the recent recoveries, but am holding on to US and global trackers for the time being. However, I don't like the way the S&P500 is now dominated by the "magnificent 7" as I think their valuations are too frothy - any correction will cause a dramatic fall in the index as a whole. My hunch is that UK-listed financials, housebuilders and miners will offer better prospects going forwards, once interest rates start to come down, and pay dividends whilst I'm waiting. But I'll keep 30-50% global exposure. Thanks again for taking the time to respond. GLA

Yep. Topped up just below 480.

IMHO it could be algos kicking in as the SP dropped below 1380. If it falls below 1300 I'll be adding.

I too am hoping to top up around 480 - I've been waiting since mid-May when the SP breached 520.

FWIW I'm about 67% in cash at the moment, having got twitchy about the recent FTSE rise and taken some profits before the run ups to next ex-div dates. My current insurance targets are MNG 196; PHNX 480; LGEN 242 and AV. 452 but I'd like to top up by August regardless, for the income. Comments and suggestions welcome. Good luck all.

@Roofer, just for fun I'll go for 70.30

thanks

dram

Thank you Trek for your insight. I'm about flat with SP but in for the dividends. My reluctance to add at this stage is the worry that there could be something nasty lurking in the woodshed that would cause a revision of the dividend and hence a serious fall in SP. Otherwise I don't understand why all and sundry aren't snapping up the shares below 500p.