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abrdn are buying back appox 180 million shares over the next 11 months. So about 750,000 shares bought back every trading day. Average volume is 8 million a day so it shoud have a very positive impavt on the share price.
ABDN gets £150 million a year from its investment in Phoenix. it owns appox 10% of the share capital. Divi is 50p a year.
It has now got £70 plus million a year from its ii investment. so that is £220 million. It has a 700 million pound investment in India. So it does not need to make that much from its asset managemnet business to cover the annual divi of £320 million.
These are not normal times and these are not normal trading days. Fundamentally is is a sound company with good prospects. It is the BOD "way" to only report the minimum. The next time we will here from them will be the half year report. The company has a viable strategy (ii) to boost income. It has Investments in HDFC (AMC) in India worth 700 million at todays rate and Phonix in the the UK worth 680 milion at todays value. It has no debt and a billion in the bank.
No The sell oprtion works as follows.
A person buys a share. eg you. You are entitled to any dividend or benefit of ownership.
The share is usually held by a nominee. So you do not phusically register the share in your name, although you can.
A hedge fund comes along and thinks the share is going to fall in value so the middleman who is holding your shares
says if you are so convinced it is going to fall in value sell the shares now and buy them back in say 6 months.
So the middleman sells the hypothetical shares now knowing that he holds your shares which he can buy back in 6 months. If the company pays a dividend in that 6 months the options holder has to pay the didvidend to the middleman who the shares. In 6 months time the sell option holder closed the contract and the middleman goes top the market to buy shares on behalf of the option holder so that he can give back the shares that he had borrowed and sold 6 months ago.
I may be cynical but it seems to me this share is being manipulated by the market makers, city, powers that be.
I am in for the long haul since I think the divi is well coverred and sooner or later quality will shine through.
If you are the holder of a short on a share then you have to pay any dividend the compnay pays to the shareholders to the original owner of the share. You have just borrowed the shares.
Holding shorts for the long term can be costly.
Marshall Wace have lost a lot of money on their short. They are actuallly reducing it now.
They shorted at a price lower than the current price and have had to pay out all the divis since Oct 2018
"We've been warning about the lack of investment," Suhail al Mazrouei said in an interview in Abu Dhabi, Bloomberg reported. "That lack of investment is catching up with a lot of countries."
https://uk.yahoo.com/finance/news/saudi-arabia-warns-world-running-150830734.html
New blow for Serious Fraud Office as second Unaoil conviction is quashed.
Maybe Petrofac should ask for a refund of the fine.
https://uk.finance.yahoo.com/news/blow-serious-fraud-office-second-174825099.html
GLG Partners and Citadel Advisors are shorting 2.25% of the stock,
Personally I think that is quite brave of them.
1) They have to pay any dividend which is currently 14.6 p a year.
2) There is also either a special divi or a buy back which will push the price up.
3) abrdn owns 10.4% of Phoenix which is £600 million and has another £1.9 billion in other holdings not least its large Indian listed holding.
4) It also has nearly £1.8 billion in cash in the bank as at 31 December.
5) It has a startegy and will buy II for circa £1.49 billion without any capital raise.
6) II will is profitable to about £60 million a year and growing.
I do not lose much sleep over this company and am happy to be a long term holder.
The divi now will be 7.3p ex divi date 7 April, payable 24 May.
The Phoenix sale return to shareholdres has still not been announced as far as I can see.
But it will be to all shareholders at a future date not a historic date.
From the accounts:
"Commitment to shareholder returns demonstrated by intention to return c£0.3bn net proceeds from sale of 4% stake in Phoenix to shareholders, method and timing to be announced as soon as practicable".
FTSE 100:
https://fknol.com/uk/market-cap-ftse-100-index-constituents.php?go=b75
grahamsturman
It is not like it is investors in ABDN money. It is the funds money they manage. I do not think anyone with a Russian focussed fund will be in the money this quarter.
Abdn has 7 billion in equity 3.2 billion in retained reserves. For me it is perplexing why this share has fallen today.