Member Info for MattTheBrave

Not just any Director, but the CFO selling half of his ordinary share holding worth £4m!! What did he think was going to happen to the share price after he did that!

Only 4 of us in the comp this year then? Blimey, where have all the cavers gone??

....but not sure why?

Tricky subject, but here's the gist:
- UK pension schemes required by the regulator (tPR) to calculate liabilities using gilt yields as the discount rate, ergo, liabilities go up and down with gilt prices
- UK pension schemes encouraged by tPR to hedge all of this risk in the assets
- If fully funded, then hold 100% gilts job done
- but most were underfunded, so shortfall needs to be made up by company contributions and returns (above gilts)
- To generate return above gilts you need to have some asset in risky assets eg equities, property etc etc
- but this means you don't hold 100% in gilts. In order to still hedge 100% of the exposure (as encouraged by tPR) you need to add some leverage into matching asset portfolio - this then become LDI.
- This leverage (swaps/repo etc) needs to be collateralised on a daily basis. Big spikes in yields makes that operationally difficult if not fully prepared.
- Problem largely fixed now because collateral levels have risen, and with most schemes being slightly under hedged, gilt yield rises actually improved funding, so less leverage now required. The gilt crises was a crises of collateral (being in the right place at the right time) NOT a crises of solvency (where the UK pension fund industry is vastly better funded than it was 12 months ago)

Hopefully that makes some sense :-)

Great set of figures for this hugely under appreciated share. It is wholly ridiculous that a company of this quality and growth potential trades now at less than 7x earnings and a yield of over 7%. Ironically, the management can take a bit of blame here as the firm is now becoming seriously over-capitalised, yet no announcement of special dividend, or share buyback. It also seems odd to deliberately target growth and cash generation in excess of dividend growth. I don't think this will remain for long however, and I see no reason why this stock shouldn't trade at 10x earnings ie 380p. At least the dividend means we're getting quite well paid whilst we wait!

TD - you can ignore 'buys' and 'sells' on boards like this. By definition every trade has a buyer and a seller. All this Board does is indicate whether the traded price is nearer the offer (which they indicate as a 'buy') or the bid (which they which they show as a sell). Basically meaningless!

TD - Looks like this one is in dollars, whereas previously, I'd seen the one below (in £)? Are they the same?
https://cointracking.info/portfolio/kr1

... so holding flat is actually more than a 2% rise. :-)

https://spacenews.com/streamlined-and-ready-for-africas-growth-markets-qa-with-avanti-communications-ceo-kyle-whitehill/

Interesting article, admittedly 6 months old, but shows that the business itself is not fatally flawed, but the way it was financed, and the original retail focus was wrong. With the debt burden significantly reduced, it will be interesting to see whether the can turn it around (though of no consolation to PIs who got stuffed, albeit, somewhat predictably).

* aid=paid.

Regardless of shorter term factors, I don't think the market understands what a free cash flow monster this stock is. Currently yielding 5.5%, AND buying back 6% of mkt cap pa - so returning capital of 11.5% pa to investors, all aid for out of FCF being generated by the business. When the market properly appreciates this, expect £10 to be reached quite quickly.

I'm a holder here with no axe to grind, but I would have to agree that the stock does have a horrible habit of falling on results announcements, regardless of content! About time something different happened.... (though there is something about the well known definition of insanity which worries me slightly about this statement.... :-) )

I'm less of a pure pensions man, more of a pensions investment expertise if you see what I mean. However, some observations:
If he's above 55, he can take the money and either
- invest it in a different pension structure (maybe the one from his current employer). That said, tend not to see very many high yielding cash funds in the institutional space, but should be better now than a year ago
- Take it as a lump sum as part of the cash commutation allowance (currently you can take 25% of your total pension value as cash tax free) providing this hasn't already bee used ie I think this can accessed with out any tax having to be paid
Neither of these approaches causes an issue with the other pension pots as far as I'm aware, apart from lowering the amount that be taken tax free as some of this allowance has now been used.

Does that help?

Quite astonishing. Bottom line is what happens if the government simply cancels the whole special assistance social housing budget (can't and won't happen BTW)? If SOHO had the repurpose the whole stock for normal residential, this would involve losing c30-40% of value, but as the price is a 50% discount already, this absolute worst case is priced in. The reality is that the social housing budget will remain (as it's much cheaper than looking after these people within the NHS, which where they'd end up) - they just need to sort out these not-for-profit Registered providers, which is admittedly a poor system, but the funds to house vulnerable people will be maintained IMV. My space is the latest problem but only represents 7.5% of SOHO's rents, and can be replaced by a different RP if SOHO desires.

So, there is chronic undervaluation here, and I wouldn't be surprised if some acquirers begin sniffing around at these levels.

*apologies

Hey Opt - My apologiss, only just saw this. Very happy to try and answer a pension question if I can!! Ask away.

Yes - ridiculous for the stock to fall based on Direct Line's results when PHNX has no general insurance business. As a pure play on the strongly growing bulk annuity business I expect this stock to do very well this year and pay you a substantial yield along the way!

ridiculous fall yesterday on Direct Line results which has no effect on M&G which is an asset manager. Not surprised by 5% recovery today.

Bald eagle - what economic trends are you referring to regarding LGEN's business The bulk annuity market is set to soar this year given improvement in funding levels within UK pensions, whilst DC Master trust business will also grow strongly (they have the UK's largest). I expect them to be largely immune to the recession due to these other drivers.

LGEN has no exposure to motor, or prop/casualty insurance businesses. It's Life insurance, pensions and asset management. There will be no dividend cut based on trends which affected DL insurance results.