The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I'm thinking/ intending to apply for some shares in the offer next week, which would be my first shares in BBOX. I would get these at 136 a share, no Stamp Duty, no Dealers fees. Why would people be buying shares today at 141 rather than buying into the offer? I know that there's a divi attached to the current shares, but that's only 1.5 ish pence iirc. Is it purely a premium to be guaranteed of getting shares whereas the offer isn't guaranteed and could be scaled back?
Credit Suisse started covering a bunch of insurers and listed LGEN as underperform with a 215p target - that will probably have contributed.
After yesterday's buy back I make it £0.855/ share, but that assumes that the dividends that were 'attached' to the shares that were bought back pre-ex-div (£188 k) aren't added into the dividend pot. I now make the March 18 divi onwards £1.016/ share. All assuming that the buy back on 5/4 is the final one ever. Just to note, the first buy back totalled a touch over £21M, the second tranche so far totals £22M.
Gosh it doesn't feel like the buy back was raiding the dividends in order to boost the share price in advance of this sell off at all! I was fairly neutral on the buy back in isolation, but watching a tumbling SP doesn't fill me with confidence that my interests are anywhere near the board's top 10 priorities. Convince me that I'm wrong and just grumbling at a red numbers day. Please :)
I'm split on the message to take from the Shadow War / not-romunda sell out. It lasted 19 minutes on the UK web store. If GW intended this as an ongoing gateway product to their range ( and I think they should), then that's horrific amounts of cash left on the table unless they bring out a very swift reprint. Shows huge market demand, but an inability to maximise the turnover/ profit from it. I don't so much mind the sell out, but I want to see the company move swiftly to capitalise on the disappointed customers. That will be a real test of if the new management has developed past the Kirby mind set.
Blimey - I'll take that thank you very much (do you think the board knew it's my birthday?) - in a little over a year, this share will have yielded about 20% of it's purchase price in divi's. Now why did I put my other investments into other shares diversity be damned!
The comparative figure for last year's dividends has been adjusted down to account for the bonus element of shares in the rights issue. Essentially if you took up the rights issue you got some 'free' shares, and last year's dividend comparative has been spread across your number of shares last year plus the number of 'free' shares you got.
Just as I know we've both followed CTAG - take a look at G4M - that *is * in the middle of an interesting 2 days - I watched it last year and missed out on getting in at around 1.66 and it went all the way up to 7's very quickly - now it's down to the low 5's - must admit it's tempting me, but also niggles me as to whether GAW could follow the same path - G4M is probably closer to GAW than CTAG in that it's a real physical business, but like CTAG it's been massively hyped as the next big thing (in this case the next ASOS).
I'd be surprised, but then it's been surprising me all the way for the last 9 months. If they can turn out 75p + dividends this year (and that's a big if) then I could just about see it if people think it's sustainable.
iii co uk/stockmarketwire/395279/broker-forecast-peel-hunt-issues-broker-note-games-workshop-group-plc?context=LSE:GAW
That £10 a share is actually looking feasible rather than the analysts pipedream I thought! If it does get there I'll be close t o'bagging' on this one which I thought was pretty much penny share territory (in fact I think I'll get there at £9.90 if I exclude stamp duty and fees).
Just seen you also post and follow (but I hope didn't invest in) CTAG Dan. It's been an interesting lesson (from the sidelines) in the difference between a small but actually operating company like GAW and a vapourware startup (is that really the right description as they have been around for about 5 years?). Cemets my approach to only go for tangible companies at this point.
Ha and in comes an RNS to contradict my 'trigger' price straight away. Have to say that it does seem a very scatter gun approach for this buy back, and seeing as they have bought back before these shares go ex-div, what happens to the now unpaid dividends? Does that get added to the September pot? I'll keep watching/ holding for the moment, but I'm not sure I'd have bought in today with this strategy.
This was known already though. If it helps, the reduced share count means that the September payment starts at £1.005 (roughly) rather than £1.00. It seems that the 'trigger' for the buy backs is a price under £28.50 - when it's been above that there's been no buying (apart from the very first buy backs in January). I'm not personally a huge fan of the buy back here and hope that that SP stays high enough not to be used again, but I think the impact has been fairly low level, and if you held until the end of the current shareholder payment plan period you'd see about 1/3 of the spend come back in improved dividends at this point - whether the SP would increase by enough to compensate you for the 2/3 spent is the point for discussion I guess.
Any thoughts as to why we hit £9 SP today? That's starting to really test my resolve to hold, in a good way ...
Puff piece on Motley Fool: fool co uk/investing/2017/02/16/2-big-yields-and-growth-potential-for-2017/ Nothing that we don't know but publicity won;t hurt the SP
Just a clarification - my maths make it that currently the £1/ share that was expected in March will be reduced *to* £0.85 rather than reduced *by* £0.85 (assuming that no more buy backs happen). On the plus side, thanks to the power of rounding, my spreadsheet now shows that future dividends (Sept 17 on) will be £1.01 rather than £1.00 :) - it may not happen though as it really shows £1.00542/ share.
Tip of the hat to a very honourable and generous post. I only added in March 16, but thinking back to the company's actions in June 15 and AoS, I don't think anyone could have predicted the turnaround that has come very quickly (I certainly didn't - I intended to buy in at 5.00 with an eye to selling at 5.50 and repeating as the company bounced around, holding for divi's inbetween - it's just bounced so far so fast that I didn't ever implement the selling side).
L&G used to own above 3% of a company called SSP (14M ish shares), they now own less than 3% of that company (maybe they've sold some/ all shares, maybe more shares have been issued diluting L&G's holding).
No Shame in taking Profits :) Hope that the cash can work half as well in it's new home (any tips?) as it did here (or better).