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I also go through AJ Bell. If the cash return is not there close of business Monday I will chase aggressively. The only divis that do sometimes get delayed by a day are if there is a really big company like Vodafone that pays out. I was told that these big divis give the AJBell team a lot of work to do to get them top everyones accounts in a day.
If certain profit conditions are not met bond holders and lenders have an option to acquire 20% of the share capital at 10p a share. Quite a dilution. The results come next March will be sink or survive, no halfway house. IMO.
http://www.proactiveinvestors.co.uk/companies/news/195984/interserve-signs-refinancing-deal-with-its-lenders-bond-providers-and-pension-scheme-trustees-195984.html
I do not think there will be a rights issue. The company is valued at £83 million, which is not very much. The company has £600 million of debt and £2 billion TO. A rights issues would have to be so diluting eg 5:1 at 50p a share that most people would just walk away. A rights issue is not really possible at this sort of value. 70% of the shares are held by institutions, I doubt they would tolerate a rights issue either.
As you state more likely there will be a slow reduction in debt over 3 years to 10 years. I doubt there will; be a divi for at least 5 years. There is no quick recovery here.
The bank is not being run for the benefit of shareholders but for the benefit of the staff. The bonuses are huge and are not linked at all to share price. The massive bonuses are paid if a ROE of 8% is reached which is very low and only enough to pay an annual divi of 20p. Not enough to move the share price above £10 ever again. There is a forecast dividend yield of 3% which is derisory compared to where it was 5 years ago. This company has been the worst performing FTSE 100 company for 4 years in a row. Bill Winters needs to go urgently.
They do not know. Most data published is just volume data which is accurate. Buying and selling numbers are far from accurate. I think some of it comes from whether it is the market maker meeting an order or investor. But from what I can make buying and selling number s are a finger in the air.
Don't let the buggers grind you down. I have been around the block a few times. I am not hugely concerned by this share. Funding is in place and there are a few investors who would lose hundreds of millions if this belly up. These investors know a lot more about the company than we do. I would not expect fireworks after the AGM but 6 months from now I would be surprised if this is not above 90p. These small movements are to be expected. I would not look at the share price so often, right off the money in your mind and come back in 3 months.
Everyday that passes means progress for Interserve. No news is good news. Funding is in place to avoid the company going bust. Fundamentally the business is profitable it is only the Waste contract that has caused 90% of the problems. In time the debt will come down, in time Debbie will kick ass. Just do not expect instant results. Time is a friend of Interserve. They are providing a valuable service that is needed and necessary for society to function. This is not a frivolous here today gone tomorrow business.
Take no notice of Liberium capital stock comments. If you look at BHP Billington they have a target price of �8 for years. BHP is currently trading at over double that. Liberium are the very worst broker. They have no credibility what so ever. I have never ever heard or seen them call a share even nearly correctly.
Rio Tinto to sell Kestrel mine for $2.25 billion https://uk.finance.yahoo.com/news/rio-tinto-sell-kestrel-mine-2-25-billion-135948112--sector.html
https://uk.finance.yahoo.com/news/oil-market-faces-supply-cliff-171535771.html
It may hit �9 but it will not be this month! As for brokers, I would ignore what they suggest. Do your own research. This is a very slow share with a cautious well paid CEO. I am confident this share will not reach �16 this side of 2025.
I am going to sit on my investment for the foreseeable future. I think the far east is great place to have a bank plus SC seem to be well in with the Chinese. The results are coming from a more stable bank than they were a few years ago so as long as TO and profit keeps improving which it should then the SP should not fall too far. Plus with interest rates going up in the USA and worldwide it should be a much better environment for banks to make money. So it could actually do very well in say 5 to 10 years.
The results should have been a lot better. 3.5% ROE is pretty bad. I think it is unlikely that the SP will fall a great deal but likewise it is unlikely to hit �10 in 2018! Bill winters took over when the SP was �11.50, so he has a way to go. Plus he had a rights issue �5 billion. He is going to take an awful long time to get the bank back to a $18 billion TO.
Which ever way you look at it these are bad results. TO is only marginally up only because commodity prices are up. Some commodity prices have doubled. The productivity of the company has deteriorated considerably. The divi is up but only as a bribe to stop share holder revolt against management. The debt of the company has not fallen very much at all. They will lose a chunk of money on shale disposal. Hopefully management can pull their finger out for the year end but these interim results are a dissapointment. The free cash in the first half only just covers the dividend.
It was from here: Management is confident of turning the business round. Indeed, despite net debt of �460m and leverage of 1.8 times EBITDA at the last half-year end, the board said it remains fully committed to continuing its progressive dividend policy. However, some analysts question whether Saga�s broking issues are more structural and if we�re looking at an ex-growth business, while a dividend yield of 7.6% at a current share price of 117p suggests the market isn�t entirely convinced the payout is safe.