Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
Vistaman, for context, take off the tinfoil hat, and read the whole sentence :
'US tax is a nightmare. I'm with ii, and just had to fill in an electronic version of w8-Ben to reduce withholding tax for DEC in my ISA. My wife's American, but we file separately so I don't need to complete any other US tax forms.'
Vistaman, I'm sorry, I forgot that morons can't read and interpret a sentence that needs to be considered in context. - 'I'm with ii, and just had to fill in an electronic version of w8-Ben to reduce withholding tax for DEC in my ISA.' I probably should have stated clearly that I 'ONLY' had to fill in an electronic version of W8-Ben, meaning it was just a single, simple step, rather than 'just', as in a ' few minutes/hours/days in the past' wrongly assuming people here weren't conspiracy theorists jumping on the smallest 'gotcha' perception in their (by which, let me be clear I mean YOUR) diseased mind.
By the way, Axe-Capital - this you ?
'...Says the Fruit and Veg Market Trader trying to be Mr Wall Street lol. Any one who spu**s 3000 posts on Synairgen in 2 years and rabbits on like you do deserves a Comedy Bafta award to be fair :)...'
'...What all 31 one of them you nugget! lol....... Fruit Bat at it again! Evil Knievel could of done with your Ramps when he was trying to jump the Grand Canyon lol...'
'...NOTREX the SHORTER! ...'
'...Lol. Simpleton Lol...'
'...GG - obviously stands for Gigantic Gonad!...'
Maybe you should try GROWING UP first before calling others out. Moron.
Axe-Capital, I don't think admin will ban someone just because I provide facts that are unpalatable to your DEC cultish fandom.
US tax is a nightmare. I'm with ii, and just had to fill in an electronic version of w8-Ben to reduce withholding tax for DEC in my ISA. My wife's American, but we file separately so I don't need to complete any other US tax forms. If you're not sure what to do with copies BCD I'd send the whole lot back to your broker with a covering letter after you've filled it in. I think A has to go to the IRS, and E to the broker, and you keep BCD. But let your broker send it back to you if that's the case. Not a definitive answer, sorry, I'm not sure why you have to fill it in, unless you submit US tax returns to the IRS.
Oh, ok, I see what you did, yes that's fair enough. Now, take a look at the past month, you'll see there's no correlation between rises over 5% and pauses in buybacks.
Day seven price rises to 1061p. PREVIOUS five day average is ((1000x4)+1030)/5 = 1006p
1061/1006 = 1.054, or a 5.4% increase vs the PREVIOUS five day average. Buy back stops.
Pickedpeck, you're a mathematician ? Tell me, what's 5% of £10.00 ? For clarity, That's FIVE PERCENT OF TEN POUNDS.
'...They should not have four quarters of dividend cash at hand to give a quarter of out in a lump sum...'
Ok, I can agree with that. But tell me, why buy for, say six (trading) days, then pause for three days, then buy again for one day, pause for seven days, etc. if they're not living day by day, cash-wise ?
'...On the shifts, yep, we have seen shifts up and down that would stop it. It doesnt' take as much as you might think. Flat and then two days of +/-3% will stop the buy backs for a day....'
Pickedpeck, this is EXACTLY why they stipulate '...5% over the average market value of the Shares for the five Business Days immediately preceding the date on which the Company agrees to buy the Shares concerned', based on the share price published in the Daily Official List of the London Stock Exchange plc... It's a FIVE DAY AVERAGE, not a one or two day average.
Did you once claim to have ben a futures trader ?
Pickedpeck, I'm definitely NOT agreeing with you on cashflow. I'm saying they're struggling for cash. You're saying - what - they just bought too many too early into the program ? The share price was higher than they expected, so they spent all their cash early on ? If they were going to stagger their buyback program, as you're contending, then they would have stated that the program would be divided into quarters, or whatever periods they chose, as the IMB (or may have been BATS, or possibly both) buyback RNS clearly stated, their buyback program would be completed in two (?) tranches. They made it clear from the start, and at the end of the first tranche and beginning of the second, exactly what their schedule would be.
I must admit, I like having you around notrex, some of the idiots and morons on this board challenge me, make me think, reason my replies. You, on the other hand. Have yet to reach the level of moron or idiot. You're very wise in one respect though, having most of your money tied up in investment trusts, rather then the losers you pick when left to your own devices.
Here you go notrex, what backpedaling is defined as. Not that it matters to you, I know, lol.
backpedal (verb)
move the pedals of a bicycle backwards (formerly to brake).
reverse one's previous action or opinion:
Can you actually read notrex ?
Also, pickedpeck, '...We have seen more than 5% shifts up and down in the last couple of weeks which inevitably pause the BB program. Its a tight set of boundaries and I am not sure why its there or what it is meant to achieve...'
Can you show me any 5 day period over the past month where the share price has been '5% over the average market value of the Shares for the five Business Days immediately preceding the date on which the Company agrees to buy the Shares concerned', based on the share price published in the Daily Official List of the London Stock Exchange plc ?
On a cursory glance, I can only see one day (29 April) where the share price exceeded 5% of it's previous 5 day trading range. (1076p - 1160p) since 12 April.
'...The company uses its post-tax distributable reserves to pay for the purchase of its own shares.
If the company doesn’t have sufficient cash available, it cannot proceed with the buyback....'
It looks like DEC is living almost week by week, at best, on free cash flow.
'...Surely if they have given irrevocable authority then they must have handed over the cash at the time too, its not like PH are going to be buying on credit....'
You've answered your own question there, pickedpeck. No company (not even IMB or BATS or SPT, as a few examples of 'kosher' buybacks by reputable companies) has, for example, 10% of it's market cap in 'free cash' that it can hand over at the beginning of a buyback program. BUT it does have to remit enough cash to cover purchases that are to be made in the next day, week, month or whatever period they have cash to cover. Take a look at BATS, you won't see how much cash the broker has received from the company in advance, but you will see regular, structured buybacks on every single day the market is open. Compare that to the DEC piecemeal approach. BATS (and IMB and Spirent, even when Spirent had issued a trading statement reporting much reduced profits and poor outlook that led to a halving of their share price that they still had enough cash on hand to finance their buyback program) has cash, DEC doesn't.
Pickedpeck, these are standard terms and conditions. Once the buyback starts, the company has no say in how the broker carries out the buyback program, (hence significant market moves + or -, price limits, and of course IF the buyback target is achieved before target date). Assuming there's no news that would affect the share price, the company must maintain a hands off relationship with the broker. The only reason for a broker NOT carrying out the buyback per the agreement is a lack of funds forthcoming from the company.
It's a shell game. Can't afford to pay the dividend, due to lack of cash. Therefore declare a share buyback, to cover up massive cut in dividend due to lack of cash. Of course, maybe DEC just aren't very good at the paperwork, or something, as you tried to comfort yourself with as a 'reasonable' excuse, lol.
'...My view is that they have signed a contract to outsource the BB to Peel Hunt and have put terms in kt that are making it misfire...'
pickedpeck, I'm surprised you don't know that the exact opposite to your guess on the mechanics of buybacks is true. In the case of buybacks, the rules are very strict, and there's no room for bespoke contractual terms and conditions between company and broker.
The obvious answer is : Companies need to lodge the cash for buybacks, no cash = no buyback. Compare to a fully funded buyback like BATS, or IMB.
DEC just doesn't have the free cashflow it claims to have.