Member Info for gfclappah

Where are you getting a yield of 10% from? Current div yield is about 1.1%

I'm also in FSJ CaneToad, I've seen you on the Morses board lol.

I've decided to go with a truck and a Hercules to load up.

Just remortgaged on your advice everyone thanks for the tips. The house is now on the line!

I'm holding my first target is £1.30.

Will buy more anything sub 60p.

Morses current div yield is 5.62%, 2% more than HAT.

I've been reading the notes and its starting to make more sense but I do have another question.

I can see that the receivables from the P&L are added to the balance sheet (net provisions) in the current assets section BUT why aren't the admin costs from the P&L in the current liabilities on the balance sheet?

Thanks

I'm long on Morses for a number of reasons:
Departure of provident/amigo
Expansion into online
Growth history
IFRS9 accounting distorting earnings (from my understanding)

I bought around 32p but my current average is about 46p, I'll continue adding this while its in the 60s. I can see this getting to 120p easy.

I'll look at page 119, really appreciate your response, thank you.

Can I ask how you know these things? Self taught or are you an accountant/director?

Can someone explain to me roughly how this works.

I can see on the income statement that provisions are made for losses (assuming this is just a guess for current loan book?)

Where do these provisions go as I can't see them on the balance sheet (Or are they not assumptions they are actually calculated)?

Sorry for what might appear obvious but I'm quite new to investing and trying to understand the accounts better as I can see the provisions have been upped for Covid and want to understand what this means in terms of cash flow. i.e. is there a good chance we might see some of this back and if provisions drop for future years obviously profits will rise.

SD235 - Correct me if I am wrong but rising interest rates usually means a healthier economy (will bring down inflation on second hand cars etc) should increase premiums sold. Also Insurance companies make some of their money from the income that they receive from policy holder’s premiums. The hope is that the policy payments exceed the cost of any pay outs that need to be made in the event of a claim. However, most of their income is made from the returns from investing these policy payments. This allows them, at times, to offer insurance policies at a very low profit, or even at a loss. However, the current low interest rate has seen investment profits plummet.

robleo - I wasn't referring to primarily growth more recovery in price, I can see a comfortable 25% upside here.

Totally agree LoggyLogbot, hence I just sold L&G at 290p for 50% profit and have moved into Direct Line today!

Sold L&G at a 50% profit, moved into Direct Line.

L&G is a great company with a solid progressive dividend but I don't see much more upside.
Direct Line bit more risk but their is more to make and a higher yield so I have moved my money here.

Both insurers so hopefully benefit from any interest increase.

Can someone explain to me with a current ratio consistently under 1 for years how this company is surviving? Are they literally always in arrears on payments on their trade payables or is there some accounting practice I'm missing?

Thanks

Bought 3% the other day whilst Schroeder continue to offload.

I've added 15% to my original holding. This company still has plenty of equity and limited debt.

COP26 etc this is definitely a look term hold in my opinion.

Just clarify by p I mean pounds LOOOL

I have an average of 850 and only bought into this a month or so ago. I still think this is a bargain. I will be averaging down when I see an uptick from a base.

The company was founded in the 1800s and has niche expertise in a growing sector (inc. oil IMO), although debt isn't the best and profits slumping there is no denying Covid has affected this. If they can turn this around and do what it looks like Bab**** are doing I definitely think there is some good money here.

I have a conservative target of about 11p for this and an ambitious 15p

Not sure why there is such negative sentiment here. Digital is growing, profit is being held back by cautious impairment actions. Once impairment is reduced margins will increase and if margins increase with continued growth then this will be a a lot more profitable than it is now. At current market cap and current profit we are looking at a PE of 20+/- with a dividend yield of about 5% @ 60p.

I thought the same, crazy!

I can see this getting to 200p this time next year