Member Info for gewillia

OK Mostly (2nd April), to dividend-strip, which is the technical term for what you're proposing, there are three factors that you need to take into consideration:

1. Dealing commissions incurred when you buy the stock cum-dividend and and then sell it ex-dividend.
2. The spread between the buying and selling prices.
3. A stock usually, but not always, falls on the day it becomes ex-dividend. Sometimes it rises. That's the market for you. It may well fall initially and then recover over the next few days. Anything can happen.

So have a look at some stocks with heavyweight dividends, such as; BP, Shell, BATS and Imperial and that have tight spreads. Allow thirty-odd quid for two dealing costs in-and-out, and see if paper-trading would have made you a consistent profit on the capital you have to invest, once a quarter, or half-year, for the past, say, five years. I'd be interested to see your results posted here, if you decide to follow up.

Incidentally, don't try this with bonds, where trading around the interest payment dates was once known as bond-washing. You can't. For the last umpty-years, a buyer has had to pay the seller the accrued interest between the last payment date and purchase date, so all you'll ever receive is the net interest accrued between your purchase and sale dates.

Ooops. Typo. Last line, "Rent Roll". Although it was maybe half a freudian slip and my mind was trying to write "Tent Pole". Either way a disaster, when the fall comes, as it only reduces the LTV problem by 1% to 52%. About 20 points greater than well-run real estate PLC's. It also shatters the value of Intu's 50%. That now has little upside, but bears 100% of any downside in rents. This half-share won't be valued at 6.6% yield. 7.5% anyone? - that represents a 12% fall in value. I write as a retired commercial surveyor. This is desperate dealing by Intu's board.

How long long before we start hearing about "breach of loan covenants"?

Great News? This deal is dreadful news. Cale Street gets a guaranteed 6.6% pa for its £186 million bail-out, which money goes straight to Intu's lenders. When, not if, the income from Derby falls, the shareholders will pay for 100% of the shortfall.

This is described, delightfully euphemistically, as, "a prioritisation waterfall for distributions." That's actually quite honest, because Intu's existing shareholders will get royally hosed when the tent roll falls.

The judge presiding over the trial of Mr. Varley, CEO in 2008-9, and three senior directors for alleged misdemeanours over the terms of the Qatari bail-out of £6 billion, has this morning discharged the jury. The trial began in January and was expected to run until November. Reporting restrictions have not been lifted.

Do any of our legal-beagles have an informed comment as to what this means? Has the latest SFO/FCA case against big-businessmen collapsed?

The link to the IC article by Simon Thompson is:

https://www.investorschronicle.co.uk/comment/2019/02/11/kromek-equity-raise-worth-backing/

Good comment, AllAtSea. I'm always very careful of advisers named Rupert, which name conjures up visions of a chinless-wonder, recently cashiered from the Guards. The MF article is worthless and erroneous. The IC is of much greater value.

Today's results demonstrate the very strong pre-let market across Europe for big-boxes and Segro is building them to show an initial yield of 7% p.a., so producing an instant 50% uplift in capital value. As always 'we climb the wall of worry' in a bull market, but online sales are still less than 20% of total retail in the UK and Europe is far less. Where those penetrations will top-out is the great unknown, but my SWAG (silly-wild-arsed-guess) is north of 40%.

The institutions are mustard keen to finance Segro & Tritax, per their two centi-million capital raises this month, and I think the share price in 2020, once this Brexit business is done with, will prove that Roo was dead wrong. Fingers crossed!

My good Kenyan friend, Pole Pole means that for every 5.15 shares you applied for in the excess allotment, you will be given 1. In other words to actually receive 100 shares, you would have needed to apply for 515 and send them a cheque for £669.50p. Another correspondent points out that Tritax's agent wil bank your cheque,l trouser £130 to cover your 100 new shares and then take their own sweet time to send you a refund of £539.50p for the 415 you didn't get.

Follow-up to my post of the 3rd, with WTB now spending £500m of the net £2.9B proceeds on a buy-back (why?), that leaves roughly £12.50 per share for a special dividend to be announced on the 13th.

Back last October, Morgan Stanley reckoned that after the usual expenses, plus £350m to pension fund, £250m to reduce debt and £300m to pay for projected capital expenses, like 19 German hotels, there'll be £2.9 billion left and available to distribute, which is just north of £15 per share.

Then there's the future possibility of a takeover of WTB by a pure hotels group. It'll be interesting to see if the two activist investors, who stirred this up and hold 8.5% of the stock, keep their holdings after the special div.

Wow, Slowly, you really know your Swahili. I should have known better than to teach grandma how to suck eggs. My apologies for that and also because you're absolutely right, my broker is full of it and we can't be scaled back, and as Johnbri4 points out, there has to be a surplus.

I was only interested in the surplus because I like to hold round numbers and 3 for 23 gives me an odd total. My suspicion is my broker was pointing out that the surplus can be scaled back and quite likely will be, so an application for a few hundred-odd shares to round up to the nearest thousand is likely to be cut back to another odd number, thus defeating the purpose of the exercise. It'll be interesting to see how many excess shares become available and how many applications there are for them. The optimist in me says that Jefferies won't need to open their cheque-book.

Thank you slowly slowly, Incidentally did you know that your name in Swahili is Poley-Poley? (The crazy facts that lodge in my brain 40 years after a landrover trip around Kenya.)

I'm sure your maths is better than my broker's. I just wanted to alert shareholders not to bother selling the family silver or the neighbour's cat to raise funds for an excess application, as it seems most unlikely to get filled. Although it does seem a little incredible that 100% of us are ponying up for our allotment. Who knows? All will be revealed later.

Easy-Living, I'm hearing from a human broker that Tritax is well over-subscribed already. That we may well be scaled back from 3 for 23 to something less and there's no point in applying for any excess, because there won't be one. Small wonder the price is at 140p.

Thank you for the heads-up EL. Someone has been buying hard all month, Moving the price up to 139p yesterday and now we get the chance to buy a load more at the 31st December closing price of 130p.

I'm minded to take up the "rights". How about yourself?

Is anyone else noticing the very heavy trading here since 01/01? 3.3 million today versus a 3-month average of c. 550,000 and it's been the same every day since last Wednesday. Up 3.3% from 130.25 to 134.6p over the period.

Some big institutional-sized trades going through, like the 1.1 million block, after the close today. Any thoughts from our cognoscenti?

Per the RNS, Medco have an Indonesian 'phone #. Wasn't it Indonesia who showered us all with profits from the fabled gold mines of BreX? Then there was Bumi which established and cemented Jacob Rothschild's reputation as an international financier. Now we have have Medco. What could possibly go wrong this time?

Seriously, it's steal if they have the money and can pull it off. Fabulous assets for sale at pennies in the pound.

Well Bigbaddaz, Future finally answered your question today. They'll be paying 0.5p dividend next February after releasing fabulous results. Doubled Ebitda from £11m to £21m. Everything growing like topsy. Fingers crossed that the ladies who run this company can keep it going. The P/E is only 20 on these results, even with the stock now north of £5. Hardly demanding.

I'm sure there's lots of private interest in TRY, auricgold. Witness the fact that it's more than doubled since your post, touching 430p earlier this year.

But, it ain't flash, which is often all that seems to appeal to a number of posters here. They really want a bet on a racehorse. Make a ten-bagger in ten months. Fat chance! But just as the punters on six-horse accumulators make the bookies rich, so the gamblers grease the market for those of us who buy a slow and steady capital improvement, plus a holding divvy of 3 or 4%. For amusement read the AEX posters. So many shares that the company would need to be valued at £5 billion for the shares to hit 10p.

Down another 2.5% today. Which means it's trading on a forward PE of 9.6, with a 7.2% yield. The price has halved from the £56.60 seen in April '17 and is now at it's lowest since Sept. '11. As Velo points out below, it seems to be ignoring all supposed 'support' levels.

But with any menthol ban years away in the US and no research to suggest that menthol users will totally quit if deprived of the product, this is beginning to look like one almighty bargain for anyone looking for a secure high-dividend yield, allied to the possibility of a thumping capital gain, if sentiment changes over the next 3 to 5 years.

I'm very tempted to try and catch the falling knife.

Sheepy, surely the whole point of investing in an Investment Trust is to spread your risk and put the investment decision in the hands of experts, rather than picking up a dart, putting on a blindfold and hoping to hit the bullseye with a ten-bagger.

GILD proves the point, essentially going sideways over 14 months, oscillating between $64 and $85, currently $70. Unless you're a very short-term trader, with low dealing and currency costs, there hasn't been much opportunity.

Whereas, during the same 14 months IBT has done exactly the same thing - today at 597p, after a 700p high in August. Biotech is a long-term horizon investment, imho, five years minimum.

As can be seen below from the growth in the share price, 694p in 2011, 830p in 2012, 1240p in '14, 1632p in '15, 2499p a year ago and 2615p today, after an all-time-high of 2920p in the late summer, from investing in biotech, pharma and health-care companies, mostly in the USA. This is a peach of a good investment.

Pay no attention to the pols. Any temporary price downturn, caused by threats to regulate prices, should be regarded as a top-up opportunity. The land-of-the-free will never legislate price-controls, but threats play well with mug voters around election times.