The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
You still hanging in there Lucy?
Thanks Richard. what do you feel are the key points of superiority in IES technology over the miners? is it easy to construct Vanadium storage facilities? Seems miners ant to go this route and be less dependent on steel prices.
ALSO HE TIPPED IOMART AT 2.80, CURRENTY 1.40
HI GUYS
I'm quite new investor and want to invest in Vanadium storage. Am considering Largo Inc, Bushveld and IES. Would appreciate comments from you guys and your views on relative merits. I notice all three are trending down currently. Thanks
So are you saying CSH is flawed or the whole sector. For example Triple point, are they tinted with same issues?
Isn't that good. Maybe now CSH will play more of a straight game for a few years using the system to shreholders advantage more. There is so much money to be made in this sector that it would be stupid to screw that up. Hopefully CSH directors will spend next year on best behaviour and we will benefit.
Does anybody think Triple point is also a bad egg?
As I see it the problem of valuations is not CSH. Its the fact that ultimately local authorities are obliged to pay a ridiculous high rent for properties that are adapted for vulnerable people. The system is the problem and we are seeing how its taken advantage of here. The only thing that would bring prices down would be for lots of competition and I don't see that happening anytime soon. The market needs a 'premier inn' style player to create system built properties and take over the market. If I was younger I'd give it a try. CSH directors friends/cousins may have profited but it seems they are following this governments MPs example. The issue I believe is moral not legal and as a result shareholders can get good yield now share price has rerated.
when is ex date due?
Lucy will you have to pay dividend to person you borrowed shares from? or will you buy them back?
curious to see your play unfold as part of my learning curve
The following are the breakdown of shareholders by type.
us private investors are meaningless in the equation and if Institutions piled out the share price would go through the floor
Individual Insiders 0.04%
218,261 shares
Private Companies 0.2%
1,206,481 shares
General Public 3.3%
20,517,556 shares
State or Government 4.9%
30,191,224 shares
Institutions 91.6%
564,977,858 shares
I would recommend IG and what I did as beginner was trade USA shares, there's no charge, no stamp duty just min of $90 purchase but i think you have to make 3+ trades per month. so you can buy for example coca-cola for $100 and sell for $101 if you want. you can' play with real money, make mistakes and treat it like a casino for a while. Have fun and be prepared for losses.
If I was CSH i would double the dividend to make shorters squirm, is that an option
If Shorters still have positions when dividend is due do they have to pay the dividend to owners of shares?
If you knock 20% of NAV that gives a SP of 87p. Previously because of rental yield it traded at a surplus to NAV so current share price seems about right, and a 20% reduction in NAV is a lot. Also I don't see how any regulator can force CSH to reduce rents especially if the tenants are paying, perhaps somebody who knows the sector can shed light on that.
From what I can make out the Directors have played the system but probably not in an illegal way. They discovered that rentals paid for vulnerable people were a ridiculously high yield on the normal purchase price of a property so what you do is buy a property at market value sell it at a price were the rent gives the 5%ish yield that we shareholders get and somehow ensure the profit in the uplift in property value goes to the Directors or their cousins. Now I don't think that is illegal but it has deprived the shareholders of more value but we invested for the 5% yield and that's what the Directors have given us. The system allows them a fat no risk profit in the middle. Good work if you can get it.
The thing is the underlying company is doing what it sets out to do and unless the Directors go to Jail should carry on doing the same for the next few years.
Given the low share price and current yield it's not a bad investment and the short pressure is keeping surplus funds going into share buy backs enhancing our value.
Dodgy Directors probably, questionable ethics you decide but there are plenty of 'immoral' businesses out there.
ok thanks, I don't really want to get into leverage trades. I just want the option to be able to profit from shares I think will fall unlike now where I can only profit from rises.
Thanks Lucy, I'm quite high risk and believe in doing and learning through mistakes so have been spreading investments lots of places/markets to see which suits me. Would appreciate more detail though, can CFD's be used for individual aim stocks? or just large well known shares like Lloyds etc? How do you short aim stocks? US listed shares?
Lucy, can you explain how you short these shares. I am new to stock investing and can't sell shares I don't have on my platform. How do you go about it. Thanks