Member Info for ICL1960

Obviously there is a text limit on posts.

I'm saying LLOY is a good way of soaking up the £2,000 dividend allowance, inside a tax saving oriented portfolio.

I was in a ski chalet, maybe twenty years ago.
Somebody mentioned that Lloyds was paying 7% dividend for years.
It was a three star half board deal, and I always booked last minute at extreme discount,
so it wasn't a gathering of stock market gurus.

Still, on 7% dividend, he would have got most of his money back, by the time the government bailed Lloyds out.
On the other hand, you probably got 5% fixed rate in an ISA, with no risk, in those days.

Deposit on cash is now dead. I am not even bothering with these Regular Savers.
At 5%, it was worth doing, not now.
The stock market is the place to go for some meaningful returns now.

Unlike my lecturer, who was saying you should not base your investment decisions on tax regime,
I am all about tax saving. In particular, you have extra tax allowances for interest, dividend and capital gains, on top of the personal allowance.

Interest
=======

Bizarrely, you can get £5,000 in interest, tax free, if your "income" is low.
If you don't work, e.g. you are retired, or got a good settlement for personal injury, you were in a good place when interest rate was 5%. Put £100k down in a 5 year fixed rate, and get the interest tax free.
Now, you need ~£1m to get £5,000 a year, so nuts to that.
The bog standard £1,000 Savings Allowance is all you need now, to mop up any stray interest, like Santander 123 (0.6% up to £20k)

This does mean that you need to take that £100k, and put it to work.

Dividend Allowance
=================

£2,000 tax free.

Tax band Tax rate on dividends over the allowance
Basic rate 7.5%
Higher rate 32.5%
Additional rate 38.1%

Let us say you get 5% dividend, on £100k that is £5,000, so the first £2,000 is tax free,
then you pay 7.5% (versus 20% income tax) on £3,000. £225 in tax.

The problem is how to make use of the £12,300 tax free in a relatively risk free way.
Bed and breakfast is pointless, as the 30 day rule nullifies it.
There is an interesting work around though. Vanguard has some retirement funds that are virtually the same.
So, you sell Target Retirement 2035 Fund today, and buy Target Retirement 2040 Fund tomorrow.

The proposition is a bit BrightHouse like, which I disapprove of.

If you have the money yourself, it is cheaper in the longer term to upgrade the lights yourself,
just like it's cheaper if you buy a washing machine outright, versus renting it from BrightHouse.

For a profitable private business, however, it can make sense to PAY EAAS as a business expense, which you then offset against profit to pay less tax. This is why you lease cars and vans, instead of buying them. In fact, a company could deliberately sell its land, just so it rents it back, so the rent is tax deductible. It also improves the financial ratios, because it LOOKS as if you are generating higher returns on less assets, because you don't own the land, or factory, so they don't appear on your balance sheet. Lease back, or off balance sheet financing, is misleading, so you are supposed to redo the numbers, if you want to compare with another company that doesn't do leaseback.

As a public institution, that does not pay tax, it seems such considerations are not relevant.
Sadly, the headmaster has so little cash, that upgrading the lights could mean letting go of some teachers;
and then they set targets for carbon reduction and give you nothing to pay for the work.
So, like a poor single mother who really wants a washing machine, she ends up going with BrightHouse.

As an investor, you can see it as a carbon reducing, ethical, green investment, or an evil pay day loan company that exploits budget squeezed institutions.

The main concern I have is they sell off the income stream, so the shareholders never see any dividend.

Yes, still alive.

Lost a lot more money on BT.A, so AXM is not the main thing that makes me want to jump out of a window.
Just as well I live in a bungalow.

Talking about business models.

KILLME.com

Motor neuron disease getting you down? Got cancer, but they can't operate because of COVID-19? Can't stand the pain any more? don't want to get your family into trouble by assisting your exit with dignity? Call 0800 KILLME, and we will send a COVID-19 infected to your door. It's a Kissagram, so there are no attempted murder charges.

There is an interesting insurance angle on this, so if you want to settle in cash, we don't mind.

It's the kind of business to list on AIM. 60 million potential customers. ;)

A number of cancelled trades, matching the sells.

If you think EAAS will go from 9p to 19p, or 90p, what would you do?

1. Put a deposit down on a JLR Defender?
2. Change your Brazilian mistress for a Russian one?
3. Move your EAAS shares into an S&S ISA?

I see three cancelled trades, so somebody had EAAS shares in his mother's name, his own name, and his wife's name.

I believe this is called bed and ISA.

Sadly, bed and breakfast no longer works, since HMRC introduced the 30 day rule.

https://www.investopedia.com/terms/b/bed-and-breakfast-deal.asp

They give you the CGT allowance with the left hand, then make you jump through hoops with the right hand to use it.

All those years I had no money to get any CGT, they allowed B&B.
As soon I have enough money to have Capital Gains, they deny me the pleasure of avoiding CGT.
It's a personal vendetta against me.

"Now can someone explain to my layman brain in simple terms why pension deficit shot up x4 since March? Did they find some dirt under the carpet?"

International Accounting Standards (IASs) dictates that you have to work out your figure the same way as everybody else.
If Donald Trump was to give you a figure, you know he did not do it by IAS (=IFRS) rules.
He will say the pension deficit is peanuts, because that's what you want to hear.

With pensions, you want to know how quickly the pensioners die off, or mortality rate.
In normal times, you look at the ages of the already retired, and future annuitants,
and come up with a cashflow plan. Note that COVID-19 tends to accelerate the deaths.
A good thing if you want to reduce the pension deficit.

Now, is £100 in 40 years time the same as £100 today?
If your cashflow plan says you have to pay out £1m in 40 years time,
it's not a liability of £1m today. They have to consider the compound interest effect over the 40 years.
The discount rate works by assuming you can get 5% (say) return. so if you invest £142,046 today,
you will have £1m in year 40 to pay out to all those malingering pesky pensioners.
You then work out what the pay out in year 39, 38, 37, etc, and the sum of their present day values can be considered the pension liability.

A good conscientious accountant doesn't do all this and more because he wants to do a thorough job,
but because if he doesn't he will lose his professional accreditation.
I assume IAS conformance is a lot more annoying than the two paragraphs above.
For example, you have to pay all the salaries of the pension department, which also has rent, computers etc.
I also find it amazing how accountants don't gnaw their own feet off, and jump out of the nearest window.
Ah, so that's why those high rise buildings have glass walls you can't open.

"I hope it does go to £1. Frustrating that would give me enough to retire but my holding is in my SIPP which I can't access for 15 years."

As I have other income streams, annuity income from pensions will likely attract 40% income tax. Ideally, you want to have the SAR shares in a S&S ISA. If not, capital gains tax is 10% or 20% (higher rate), which is far more preferable to 40% income tax. If you end up in 45% tax band, even more pain.

During the Thatcher years, I was really keen on building up my pension, but the numbers mean that, in retirement, I end up paying 40% tax when taking it out. the tax rebate was only 33%, 40 years ago!

Don't forget, when you retire, the pesky state pension will use up half your tax free personal allowance. With the pension Life Time Allowance, you could even pay 55% on the lump sum, if you exceed the LTA.

I have 1 million shares of SAR. If it did go to £1 a share, I definitely DO NOT want it in a SIPP.

Were they moonlighting as a Marlene Dietrich drag act? She paints her eyebrows on.

I was not in hardware. I worked on X-25 Layer 3 software of the OSI 7 Layer .
CCITT (now ITU) Red Book was my bible.

Link Layer chat up line:
Question : SABM
Answer: UA

If you can find a girl who replies UA at a party, you have made an ABM connection.
On the other hand, if a girl knows the Link Layer handshake protocol that well, would you really want to date her?
Hence I theorise the inevitable extinction of Link Layer engineers.

Had a chat with a BBC engineer, maybe 30 years ago. They used microwave links, for terrestrial relay purposes. As you might expect, pigeons would hang out nearby. They do find dead pigeons, and the engineers are pretty careful about getting their bits roasted.

People just don't know about the dangerous stuff, because they are high up on TV towers, and on a hill, with a fence around them, and a sign that says "Danger, risk of Death"

"Your point being ?"

Where is the dividend coming from, if the income is already sold off?

It's an old paving scam.
Fitting the edge of the pavement is where the work is.
They lay out the tiles in the middle, so it looks like the work is 80% done.
They ask for 80% of the money, saying it's for the materials.
You never see them again.

Did you see the Turner Pope placings for Alexander Mining?
It's the same crew.

"We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to eEnergy Group plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination."

"Marketing Communication
Your Capital is at Risk"

"This is a non-independent marketing communication under the rules of the Financial Conduct Authority (“FCA”).
The analyst who has prepared this report is aware that Turner Pope Investments (TPI) Limited (“TPI”) has a
relationship with the company covered in this report. Accordingly, the report has not been prepared in accordance
with legal requirements designed to promote the independence of investment research and is not subject to any
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Turner Pope was doing placings for Alexander Mining AXM, the predecessor of EAAS. Both are AIM listed.

COVID-19 should be boosting broadband usage. COVID-19 ending should reduce it.

BREXIT means more e-commerce internationally, but I don't see a significant impact on BT.

I would say dividend is the major factor.

Pension as a liability on the balance sheet is next.
This is a shrinking factor, as retired recipients pass away, and the new hire pension regime become more dominant.

Barring fiascos like the Italian scandal, my expectation is the infrastructure upgrade will mean a much more reliable network, requiring less maintainance. The redundancies actually reduces the pension liability further.

Freshly revamped infrastructure, low overheads, cash generating.
If the valuation stays low, somebody will make a hostile takeover.
Buy it for £3, break it up for £5.

"The terms of the Facility provide for SUSI to purchase the future receivables arising from new Light-as-a-Service ("LaaS") projects in the Republic of Ireland across the education sector, other public bodies and a range of commercial sectors. The payments by the client are always funded by the customers' energy savings. The Facility will cover new projects installed for the next three years or until the Facility has been fully utilised, whichever is earlier."

With solar panels, the cowboys were "renting the roof" of house owners to establish the FIT cashflow, i.e. future receivables, which they then sell off. When the inverters die, and the roof leaks, they have disappeared with the money. from selling the cashflow.

When you value EAAS, you think there is a steadily increasing dividend stream coming, but that is now sold off.

They could be on the level, and will be using the money to fund future projects, boosting future dividend, but there is a possibility that they will simply take the money and run, leave everybody in the lurch. If this company intends to carry on, they need to start paying some dividend from the payments coming in. Selling the income stream and not paying dividend makes me vervous.

Every sperm is perfect, every sperm is good, and if a sperm is wasted, God will be quite irate.

1% will die, when infected, if there is no medical intervention.
The world population is 7.7 billion, so 10% is 770million., and 1% is 77million.
0.1% is 770,000, which is the death toll so far.

All this faffing around, we will probably end up with a big death count any way.
Lock down is like holding your breath under water. You have to come up for air, and that's when Baba Yaga gets you.

If they can just accept a number below 77 million dead is a win, and manage the situation, like getting the young infected, so we can use their plasma (blood) with anti-bodies to treat the serious cases, we wouldn't have to borrow hundreds of billions, and the economy carries on. Not everybody have it bad, some people just recover after a bad case of flu.

The real joke is, they were sending plague ships into the safe harbour of care homes. No PPE for care homes, because they were reserving them for the NHS. with caring like that, please don't bother.

InterTrader Limited of Gibraltar.
137,297,441 shares, 3.314%, up from 0.874% .

At 10p, that would be £13.7m
At 20p, £27.4m

A Cullinan and a house to park it in.

Mr. Big is in town.

"I assume you don’t include yourself in that 7 billion reduction."

https://www.bbc.co.uk/programmes/m000dl6q

We are in this mess because too many people are allowed to live, when they should have died, if Nature had its way.
Chris Packham gives his own father as an example.
He allows the NHS to treat his father, because he is as selfish as the next man.

The world's supply of clean air, water and food will shrink, as Climate Change takes hold.
If you can cull the human population to fit the resources in advance, you can avoid all the unpleasantness that comes with fighting for survival.

In the present, a clear thinking government will allow Nature to help reduce the State Pension burden.
It is also a great relief on the long term care costs plaguing many advanced economies, especially Japan.

All Boris Johnson had to do was to follow the Swedish approach, and we will be nearly finished with COVID-19 by now.
Without the need to borrow hundreds of billions.
In fact, I expect a budget surplus, from the reduced pension and care costs.

"Why was 75ohm chosen as oposed to smaller diameter 50 ohm cables ?"

It's homework from 1985! I barely remember this explained the need for a 75 Ohm Terminating Resistor.
Something like the integral into infinity sums up to 75 Ohms,
so putting on a terminating resistor is like you have an infinitely long co-ax.

"You obviously know next to nothing about the copper network and equipment used"

For my degree, they made us do maths to work out the interference immunity of twisted pair, and work out why co-ax has 75 Ohm impedance. I even did half a module of wiring loom theory and practice. All university stuff 40 years ago. I'm the one that is forever shouting at builders not to put signal cables next to mains cables. They just sneak the cables in when I'm not looking.

"That is disgraceful. You can’t wish for that. Stay off the mushrooms and apologise unreservedly"

I do wish for world population reduction by 7 billion.
The survival of the planet depends on it.
As Sir David Attenborough has said, without oil, the Earth can support a billion people, based on the energy supplied by the sun.

https://www.bbc.co.uk/iplayer/episode/m000l465/panorama-britains-coronavirus-gamble

If we did nothing, 500,000 dead in the UK. A missed opportunity.

It used to be that I get a phone line put in, and nothing needs doing for years.
There was a "flood" , so the wires shorted, and burned out, so a major re-wiring had to be done.
I was passing the green cabinet, where the engineer was working away.
He told me only a very limited number of pairs still survive, so I needed to call in pronto, and get a job set up.
First come first served, so the neighbours could be waiting weeks before re-connection.
Fair enough.

In the last few years, I have been getting broadband disconnection frequently.
After multiple OpenReach visits, it seems the connections outside the house are just flaky.
The patch panels are old, and ned replacing. This means the engineers are wasting their time just fixing flaky contacts.

Fibre to the premises means that it could last forever.
When the Time Machine turns up at the Morlocks and Eloi's time, it could still be working.
No more flaky contact visits. Redundancy galore. Drastically reduced maintainance costs.

New BT employees are put on lower cost pensions, so hopefully the pension liability will gradually reduce.

Poisoned Kissagrams
__________________

A COVID-19 infected Kissagram turns up at BT pensioners home. Happy birthday, kiss, kiss.
Pension department has the list.
Hire a department head who is willing to send the Kissagrams.
Drastically reduced balance sheet pension liability.