Member Info for MattTheBrave

Sorry mate, but your comments about dividends and buybacks below show a very poor understanding. Firstly, companies that are growing fast like AHT have high retained earnings as they need the cash to reinvest, hence funds for divvys and buybacks tend to be lower. Secondly, ignoring tax effects, a buy back is economically identical to you receiving the dividend and then reinvesting back into the stock. However, the tax regime tend to favour the buyback, and hence that's one reason they do it. the other reason is that it increases EPS as the bought shares are then cancelled which lowers the number of shares used in the EPS calculation.

Finally, on the dividend vs share buyback, I am taxed on dividends at 45%, but pay only 20% on Capital gains, and even then , only if they exceed the allowance of ?11.7k or so. Hence for me, and any higher rate tax payers, a buyback is a far more efficient use of excess cash than a dividend.

2.2p

On man's critical thinker is another man's egotistical troll, I guess ;-))

...though not sure what's driving it (apart from it being ridiculously undervalued!!)

A man with 40 years experience in telcos should be a real asset to this Board, yet all GCC posts is mindless paranoid conspiracy theories. Frankly, what a waste!

Here's hoping!

Welcome back to Hots - hope all is well with you sir, and glad to see you back.

Just back from a nice long festive break! If I'm not too late for the Comp, I'd like to go for SuperDry (SDRY) please GS.

...of the Emperor's clothes being revealed.........:-(

Damn, you got me! :-))

No I won't.

Thick people tend to be permanently thick in my experience.........;-)

HITS - you know you won't get any sort of sensible thought through response from GCC to your post below. Like any troll, he simply fires his salvos and then runs away. He's a sad little chap really, who has pi55ed away a good deal of his children's inheritance here (if indeed he's found a spouse who is also willing to procreate with him). He is to be pitied, but trying to have a reasoned debate with him just isn't possible.

....which is a shame, but hopefully he's been planning for this for a while, and has full confidence in the new man. I wonder if this had leaked out somewhere as it would explain the price weakness on seemingly no news.

Much worse that I was expecting TBH. Revenues for the period are up, but the margins have been shot. This isn't weather related, it's more structural than that. Too late to sell at this level (not far off single digit PE, even on a 50% profit fall) but genuinely awful first half.

Once again - you say no and no thanks, but in relation to what? You're all over the place. SS has clearly been more right than wrong. a 99% fall in the share price gives broadly the same pain as 100% fall ie bust, so your point is moot. For your part, you spend a lot of time debating the technical details of the satellite industry, but have very little to say regarding the business cas/balance sheet/ capital structure, which is what would have actually saved you some money. I'm wondering whether you'll ever learn?

Why do you assume that SS is a 'he', BTW?

...crawling back towards £6....

tyche - splitting hairs I think. You have clearly been in the positive/optimistic camp here, so chucking rocks at SS because it hasn't gone bust (yet), but the stock is effectively worthless just looks churlish to me. I'd love to respond to the second part of the post, but I don't actually understand what point you're making. (Also, I believe it's spelt "b-a-n-t-e-r" for your future reference).

Hi Dave - I'm not quite sure what question you are asking me? Bottom line is that the ESMA ruling has broadly had the effect on revenues which IG predicted, but clearly, many investors had hoped it would be somewhat better. However, as is often the case, the stock has completely overreacted to that disappointment, leaving the stock on a single digit PE, and an attractive (and safe) yield. As soon as the comparables become favorable, starting next year, this price will be shown to be a bargain. As ever, the stock will begin to move before this, and will probably overshoot in the same way as it has undershot this time. All IMHO of course!

In a more normal market environment, stock would be up 10%. I'm slowly continuing to accumulate stock at this level. GLA

So a 63% rise doesn't warrant a buy!!?? This is why I never follow broker recommendations - what a bunch of clowns!!