The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
It's really hard to give a neutral POV on this share right now - part of me is sitting on a 40%+ capital gain and screaming to cash it in, but the other part of me is saying that last year it delivered just under 9% yield on my buy in price and I'd be hard pushed to re-invest that sale proceeds and generate an equivalent yield (I'd need about 6.2% just to match it, and that's assuming the 2017 divi's are only the same as the 2016 ones) . I think that what's happened is that the market has caught up to the early Dec RNS saying profit for the first 6 months was double the PY and jumped in en masse. If I was looking to trade, I'd maybe sell out, take my profits and stick them elsewhere (BMS I'm watching you :) ). But really this is a share I'm looking to hold for the long term and enjoy the divi's, so I can live with the SP falling if it does happen in future months as long as I am still collecting £0.40+ a share each year. If the SP went north of £8 without the divi increasing, I'd maybe cash out and invest elsewhere for the income, but I think that's unlikely. On a micro level, I'm seeing some sensible commercial decisions being made to free cash from the pockets of the company's customers, and it reassures me that the new leadership knows what they are doing.
If that comment brings it back .....
:) Brexit what was made me start to put serious (for me) amounts of my savings into shares - LGEN was my #3 performing share of 2016.
Not confirmed/ declared yet, but based on previous years, I expect it to be declared mid-March, ex-div at the end of April, paid start of June.
Pretty low day in terms of share volume traded, but masses of small (under £1000) trades, and mostly showing as buys - any thoughts as to what drove it today? I wondered if it was some sort of employee investment plan, but I *think* those are done by issuing new shares rather than buying on the open market (I could be wrong I guess).
If you go to the RNS section and read the Half Year report on 2nd Dec it is all set out in there. Brief version is that the return of cash to shareholders will be kept the same (at £2/share/year), but that money maybe used as share buybacks instead of/ as well as straight cash dividend payments, depending on what the BoD sees as providing better value to shareholders. It also set out a timetable that any dividend payments will be declared in February and August and made in March/ September of each year - buy backs can be made at any point in the 6 months (from my reading). Very brief version - any dividend will be declared in February 17, paid in March 17, but may be less in cash terms than previous years if replaced by buy backs.
Just out of nosiness/ interest, what drew people here to invest in GAW? Was it a purely financial decision based on the numbers, or are/ were you a customer/ fan and semi-investing as part of the "Hobby" tm? I'm still an occasional customer although massively reduced as a %age of my gaming spend from the golden 80's days, but have been following the share as a spectator for years, and it seemed a logical place to start my adventure into direct investing as I (thought) I could see when it was priced too cheaply.
Begs the question at what point you get tempted to cash out? I bought in at a touch over £5.00 with fees, so sitting very pretty, but the divi's are very pleasant and look to continue. I'd struggle to generate a better income stream, at least until the SP reached about £8 - £8.50, so for the moment, I'll continue to hold and smile :)
Hmmm - last RNS I can find for Woodford was June 14 at 3% going from 18 to 20M shares, so there must be a bunch not listed on this site - not sure why (or if it's my speed reading at fault). I'm fairly sure that there would have to be an RNS inbetween 3% and 10% (I've seen ones at 6 or 7%).
In the RNS it says that he held 66m shares before this transaction and now holds 68M, so that certainly wouldn't be a 5% jump in 1 acquisition - I'll look back through the RNS's to see what the last announcement was - I guess it could be that he had made acquisitions that didn't trigger an RNS - I don;t know what the different thresholds are.
Can't be certain until the actual declaration, but assuming it matches previous years, around 15th Dec, but wait for the proper announcement to be sure. Then paid late Jan.
I don't disagree - the new management (basically Tom Kirby not being in charge) really seems to have brought a re-invigoration to things. Lovely rise in SP, nice divi tomorrow, hopefully a good interim divi at the 6 month proper report and Blood Bowl has just been re-released :) it's like being a teenager back in the 80's with all this GW goodness ;)
That will do nicely - looking at double the operating profit for the same period in 2015. Must admit there's part of me tempted to cash out as I'd have had a return of 30% in 9 months if you include dividends, but if they can maintain these successes (as a baseline - I'm not expecting doubling Y-o-Y every report!), then I'll be very happy to sit back and take the divi's.
This may be of interest as an illustration of the changes that have been brought in of late by GAW management, the company has brought in a new "Made to Order" service, where select models that have been out of production are being made available to order for 1 week at a time about once a month with delivery within a month - essentially they collect all the orders then dig the moulds out of archive and do a large production run. It has gone down VERY well with customers - previously, buying OOP models meant searching Ebay, Facebook, flea markets and convention bring and buy stalls, often paying well over original retail. GAW are now benefiting from the collector mentality among their customers, and in many cases bringing back customers who had not bought from them for some time if they didn't like the latest modelling style. It's not quite the 'free' money of video game IP licensing as there is still actual production work required, but it's a great step to create extra sales from existing but archived IP. (And personally I'm debating dropping about £50-£100 on this week's re-releases).
Nice start to the day - I wish more of my holdings' CEO's would **** off the government if this is the result ;)
Not seeing this story in the News section, but L&G have just done a £1B deal to take on the Vickers pension scheme from RR. https://uk.finance.yahoo.com/news/rolls-royce-offload-vickers-pensions-183700682.html
High Court Brexit decision.
Ahhh, it went ex-rights today - that's why the big headline drop - last night's UT must have been factoring some of that in. I'd forgotten about that date coming up.
Something looks like it went weird with the uncrossing trade and that fed through into triggering low prices on automatic trades at closing price. But I have no idea what or why.
Latest RNS - to be paid 2 Dec , ex div 27 Oct. Takes the dividend paid in Calendar Year 2016 to £0.45 - very nice returns