Member Info for Martinv

There is an investor meet presentation tomorrow at 11 am. Hope for more transparency on that on the way forward. Let me have your thoughts if you are able to view cheers

I have been watching this and fully expected results to be bad. It looks a stretched act of faith given the lack of product detail which is designed to restore the company at this stage so unsurprising share reaction. One expects much greater currency volatility. In the run up to US election

Given anything from Edison is sponsored by the REIT you can regard it as heavy odds on the Inglis solution is a new share issue and reduced dividend. This makes sense if there is no appetite to issue a new bond to finance the redemption where the coupon would need to be north of 10% and carry conversion rights at a favourable price into more ordinary. Yes it is dilutive but what are you expecting?

I think the time to look at this will be when there is evidence that the company is raising cash to clear some of the debt. I sold several months ago when it was clear nothing significant was happening to reduce gearing. Not sure what covenants are in place but gearing North of 50% is ugly and seems too great a risk to bother considering.

I agree this is bad governance by the board as retail shareholders are being stuffed by directors who are only interested in their institutions. I mailed the company and suggested if they were so confident then why not allocate some cash to a tender as other Investment Trusts have done for material changes. You can find a link on the company website. I urge all those holding to raise this issue as it is important we are not lost in the mire. It seems someone from Liberum will be contacting me as a result. That promises to be an interesting conversation since I generally have little regard for their output.

Have to say at around £27 I see profit taking or top slicing as a reasonable case. I note the recent new branch openings at BM which will involve a ramp up of costs and thus pressure on margins in the short term . I note ( per my previous post! ) that for 2022 Peel Hunt make Rathbones top sector pick lauding the recent acquisition. Whilst I have not looked closely at this myself ( too much in the sector already ) on fundamentals you could argue it makes sense

This was always going to end in a disagreement and like Fidelity with Genesis IT all investors should be offered a tender at NAV, especially as the Trust is replete with cash following Aegean takeover. This is proper corporate governance and not the let’s keep our jobs and ignore the retail investor which pervades. I note holders of 43% are calling for an EGM and hence the board should be thinking again. Unless there are plans to merge it with another it is far too small for most institutions so will continue to languish without a discount control. Buying back shares is a pretty hopeless measure as it will merely continue to decrease the value of the trust and hence its viability

Yes you are correct just pumped up by IC in a report copied mostly from similar comments from Peel Hunt ( brokers to BM ). Odd to note that BM has out performed Rathbones by over 50% in share price terms in the last 3 years. Latter looks good value and suffered from the same over paying for acquisitions which was the domain of BM. Still do not see where BM goes from here. You might want to note the stream of director share sales which seem to be becoming a regular feature. Without further culling of the huge finance and compliance teams I can see margins contracting again and even the CEO says staff costs will rise significantly next year. Odd the latter does not deem a mention from IC pump.

AS is a safe pair of hands after the disastrous regime of CC. I think it is key that a lot of the shares are in a few hands, may decide the destiny of the company. Suggest a new strategy will be needed soon as the current relief rally seems to have played out now. The business is too small to play in the pool where it wants to be so a takeover would be most likely outcome. Investec is looking to grow so maybe one interested. Firm has lost a lot of its good people and if it remains independent needs to recruit the right people which will not come cheap.