Member Info for hjkl

Probably ever since brexit markets have taken a glass half empty approach to UK equities.

These are good results from PHNX. I see nothing to find anything to moan about except that the div increase is lower
than current inflation - see what I mean by half empty ?

However most forecasters see inflation dropping quite sharply next year. Many companies like PHNX and LGEN should then transparently look good value.

Not looking too happy is it. Other companies in the pharma sector seem to be stable so it's unlikely to be a response to the US bill going through ?

Never heard of them but a quick look suggests that it would be a good acquisition at the indicated price. Just hope that they walk away if OZ shareholders aren't interested at the offer price.

Phnx really are deal makers aren't they. This looks like another good one - small but nicely formed.

I think the 2.5% divi increase is all about the signal. Paid in cash but even so can still afford to increase the payout. The signs are good for a very substantial increase once the Sun Life acquisition has contributed a couple of years of cashflow.

The other factor maybe the takeover of Avast. Different area of the technology sector but there you go.

Semiconductor markets might be in a bit of a tizzy and working out whether specific shares should be going up or down resulting from the Pelosi visit to Taiwan.

More or less as expected nice results.

Not worried about the non-rise in the dividend - we all know it's about the politics. Not even that fussed about the buybacks - in my view the SP is undervaluing the company therefore not much wrong in buying up some of it.

Is there a better value combination of a growth stock and a solid balance sheet on the market ?

Just because the oil price rises / falls by x% doesn't mean the share price should rise/fall by x%.

Markets never used to be like this with huge swings on a daily basis - they had a more sanguine view of fundamental value.

In the case of SHEL what about it's huge natural gas portfolio - US prices slightly down, UK slightly up today ? Almost seems to be irrelevant in the frenzy.

The cash flows being generated are impressive.

Wondering about the debt pile - anyone know what the interest / repayment terms are and also convertibility to stock which results in the normal dilution for existing holders ?

Never bought this stock but aware it's more into South Africa and less into / exiting Tanzania and has undergone painful restructuring recently etc. Which hopefully means a steadier proposition going forward.

Clearly the market needs reminding of the basics. At the latest that will happen at the next quarterly results.

Agreed. Most US tech stocks have been and still are on astronomical valuations. It's the same everywhere for "fashionable" stocks including the UK. Just that in the UK those firms are much smaller so don't have the visibility - still crazy share prices though.

I would like to know what the legal latitude is for say a private equity takeover of RMG.

The cost base is eye watering - I think from memory the annual company payment to the pension fund is £400 million. Is this for an indefinite period, is there a re-evaluation - don't know - but it's a huge slice off top line cash flow. Plus of course the day to day wage bill/benefits and difficulties in curbing them.

The upsides are more than promising - very valuable property portfolio, international / parcel growth.

So can a buyer fundamentally change the equation or is he stuck ?

Update.

Well in spite of them saying earlier in the week that I was getting cash I've now seen that I've been credited with WDS DIs.

Good news but I've asked them to clarify the next and hopefully the last step - will the DIs be converted - eventually, automatically, upon request ? - into standard LSE stock. It's not an issue right now as in all respects DIs have the same value as the underlying equity and are quoted in £ but we don't want any issues down the line with regards to dividend declarations, tax charges / complications and so on. Again this may or may not be an issue but given the choice I'd rather have good old plain LSE stock.

I'm guessing that everyone that has been issued with WDS stock is in the same situation whether they realise it or not.

This is interesting. It seems to me that what should have happened is that the Woodside London listing was organised and well up and running BEFORE the in specie dividend was allocated to BHP shareholders.

That way when the dividend arrived in your accounts broker says ah yes X is entitled to Y shares here you go. The CDI is an extra complication but basically if your platform didn't allow ASX equities at the date of payout then computed said NO.

Further thought.

Have those holders who have received WDS shares without problem confirmed on which exchange those share are listed. For example I know that ii accepts Australian shares in their accounts - so might those shares be ASX ?

Trying to work out whether this is partly a case of the location listing rules for various platforms or partly whether different brokers have been more proactive than others in sorting this out.

Explained to my broker the rationale behind the deal, the Woodside London listing and so on. They said that's all very well but that the Woodside entitlement credited to me was ASX listed stock. Can't hold that in my account therefore sold for cash.

Kind of defeats the object of the exercise if this turns out to be the case for many holders - why couldn't they arrange for entitlements based on the new London listing ? Oh well.

Woodside ticker on the LSE is WDS

Don't have holdings in either Cairn/Capricorn or Tullow but this looks like a poor deal for the former and a good one for the latter.

Perhaps the market was right to undervalue Cairn and it's huge cash position - and them putting it to best use. Opportunities always come along and there is no rush to spend it. For example an obvious contender right now is the North Sea.

Quite clearly the govt wants more investment in the sector but many of the smaller independents don't have the balance sheets to spend the money and get the tax relief to offset the higher taxes now being levied. This did look like one opportunity to do some nimble deals.

Jackdaw has got approval in the Central North Sea, UKCS

About time but never late than never. Thought the recent shenanigans might turn out to be a net plus for Shell.

After tax relief the excess profits levy is less important than the need to develop domestic oil and gas assets.