The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Ex-div already today isn’t it? Less of a drop than I expected, but I have no dog in the fight any more. GLA with this perennial jam tomorrow business
1Bokke, thanks. In that case your options are likely to be (a) a share cert in your own name, or (b) a stock transfer to another broker that will handle them. For me, disposal was the right decision, notwithstanding a heavy loss after several years of holding and occasionally trading.
HSBC-ID were totally in the dark as of this morning, and going by other comments so are several other brokers. They also didn't know if they handle AQSE issues so I have assumed they don't, and for that and other reasons I have sold out - 45k yesterday and the same today which you can see on the trades above. My other broker, an affiliate of Saxo, doesn't even handle OPTI so I won't be buying back in. My bad for following a TW tip.
The muted market reaction today suggests that investors don't currently believe that will happen. I will be watching over the next couple of weeks and personally, selling into any signs of strength.
It's dawning that it is indeed a 'so what' event. You will get a quid a share in cash, with a possible tax implication, and end up with a quarter less shares at the same (or close to) price. You will own the same fraction of the company as before, but the company will have a smaller balance sheet. The share price will, of course, drop on 7 April in response to the future payment of the final dividend of 14.7p. I can't see what is in this for Cevian, although they must surely have been consulted.
Can’t fault your maths, but that method means no profit is accumulated (which HMRC would dispute). You can’t have it both ways, not that I am suggesting you are trying to
Technically nothing, but delays (which can be less or more than 6 weeks) are primarily due to finance directors aligning the outflow with other cash payments in or out.
You have received no dividend from Aviva today, which is ex-dividend day. Payment day is 7 Oct.
And the SP plunges. There’s a definite pattern at the moment whereby companies report good results and the SP dips. Sell on the news I suppose.
The RNS which contained the 2020 finals also stated that the company tax residency migration from IoM to UK was completed in January. However, the share ISIN remains IM... and I believe the share register remains in the IoM. Anybody know where the domicile is now, from the point of view of UK HMRC? Before the migration, it was unequivocally IoM (and therefore "foreign") but it's less clear now.
The markets don’t get more volatile than they did today. Why the inverse reaction from PLUS?
They do sell the new engines, but at cost if they are lucky - at a loss if it's a big order. The "power by the hour" (an obsolete trademark but still owned by RR) deals are also at thin margins on large or strategic orders. They also usually have minimum utilisation backstops, but these may not be enforceable on airlines who are themselves struggling.
RR has no earnings, it is currently making huge losses in case it had escaped your notice. But anyway even a P/E of 15 would be too high in the present conditions of the industry
RR share price was 670 at the end of Jan, about half what is was in the glory years. It has never been anywhere near 2000.
The 60% market share is in the large engine/aircraft segment. They have virtually nothing in the mid-range, narrow-body segment which is likely to recover more quickly than long-haul. The other parts of the business (marine, military, nuclear) are quite small in relation to civil.
I don't wish to be unduly pessimistic but nobody can have much idea of what the shares are really worth now. I am sure the company will survive and recover, but it's going to take longer than most people expect. I dare say the shares will double but over 3-4 years.
I think you will find that RR does not issue quarterly updates and definitely does not issue quarterly results. They do these twice not four times a year.