Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Yep some good news. For me the key question really is whether this indicates a similar or even higher level of dividends going forward, or whether this partly reflects dividends that weren't able to be paid in the previous quarter. Guess will find out fairly soon.
One question tickhilltim, in terms of the bond maturity, wouldn't one option be to finance an equivalent loan, albeit taking the hit on interest rates?
Picked up some of these today after following for a while. Can honestly say I've got no idea if it is the right decision.
We can all see the case for purchasing in that the shares will do well if interest rates come down, property values don't fall by much more and if any potential downturn doesn't hit commercial lettings too much. And my expectation is that things will all work out for the company.
But from a risk and reward perspective, if that positive scenario doesn't come to pass, potentially could have invested in something with a lower return return but also less risk in terms of things going wrong.
I think generally the shares react in quite unpredictable ways - and will often overshoot for instance on good news. I think mainly down to being a low volume share rather than anyone with inside knowledge influencing the price. The main driver at the moment likely to being the interest rate that Jarvis can get on balances
Rivaldo, The last bit of the article for Anexo is "I continue to see upside to my 200p fair value target, having included the shares, at 136.9p, in my market beating 2021 Bargain Shares Portfolio." (The rest of the article is about other shares.)
I guess the case for justifying this share price is half year eps = 8.45. Annualised = 16.9. Assuming a PE ratio of 20, then share price should be 338p currently. (PE ratio a touch above normal, but historically often saw the PE ratio around 19.
Anyone who thinks 2nd half of the year will be better than first half, or future growth prospects have improved, or that there is additional dividend money in the tank to be distributed (above what would be distributed normally) would have a good reason for thinking 360p at the moment is fair value.
Not saying I actually know what fair value would be, or whether we could see a correction some time soon, but those would be the figures that could justify the current share price.
I've got no real idea what the investopedia article is saying. But from the interim report:
"Shares held in treasury are deducted for the purpose of calculating earnings per share. During the period 917,600 shares were sold from treasury. As at the period end no shares are held in treasury."
Which means they will now be included in EPS calculations now that they have been purchased. Also these shares will now receive a dividend, which did not happen when they were in the treasury?
These are really good results. Re the cancellation of the share premium. Is this definitely a good thing? Ok we will get a nice dividend payment in the short run, but won't it reduce earnings per share longer term as there will be more shares? Also will it reduce the dividend per share as there will be more shares that the dividend will be needing to be paid to.
@barchild - HL are a bit of a joke with investing divis. They only do it once a month based on what's in your account on the 10th of the month. So if the divi is paid on the 12th, it won't be registered until the 10th of the following month, and then reinvested at some point in the following week. Definitely meant I took a hit on this one, as J had jumped up more than 10% in the meantime.
Think part of the increase today was because hargreaves lansdowne did their dividend reinvestment today. Noticed mine when through at 11.45am. Anyone have any views about whether the share price is starting to get frothy, or are the fundamentals going to carry on getting better?
Interesting that Tef are quoting build costs of £40m (see section 5.6)
Wonder if anyone has a view on accurate that is and whether it tallies with build costs elsewhere?
Just up the road from Tef: "In Bow, for example, two-bedroom flats at St Paul’s Square are on sale for £459,000. This time last year, two-bedroom flats at the site were being advertised at £525,000."
https://www.homesandproperty.co.uk/property-news/buying/the-best-newhomes-discounts-on-offer-as-brexit-and-stamp-duty-jitters-make-now-the-time-to-buy-a122911.html
Sain, agree that it might end up as an additional source of funding and if channelled to London, TEF might particularly benefit, but part of what I was saying, is it also might be lower margin work. Chrisp Street is a good case in point. The more govt funding available, the more that councils/housing association can switch the mix on developments from private sale to social housing (thus lowering the returns for private sector).
Sain, I have a slightly different take - councils when they are taking the lead on developments, whether that be regeneration programmes involving demolition or brown field sites are extremely cash constrained. They simply don't have access to the finances to move projects along quickly or on their own initiative. They have to involve the private sector and this makes the projects a lot more complicated than need be and hence a lot slower. Ie: instead of just needing to find someone to build the houses, they also need to find a development partner, and inevitably the development partner has its own ideas, which adds additional complications to the consultation and planning process. Might well mean that TEF benefits and that they can partner up with London Local Authorities. But it also might mean a small shift away from the partner-with-a-developer model which has been necessary due to financial constraints. However at this time the plans as far as I can tell are pretty vague.
It's all based on the turnaround story. And the idea that the update suggests that Fitzgerald knows what he is doing . Basically, idea for the company is to increase margins and grow completions from 1500 to 4000. So if the company starts to do that, there is obviously a lot of upside in the share price compared to Barratt and Taylor Wimpey who aren't planning to increase volumes significantly.