Member Info for RKBeekeeper

Good afternoon BigjohnnyWin

That is good to hear the pub is doing well with takeouts.

I do not think I can disagree with anything you say so I “liked” your Post.

I threw the spanner in this afternoon and did Subject Access Requests with our Nomad / Broker (they could have resolved if they had picked-up the phone but they think we are insignificant.

Also put in a Subject Access Request to a Broker that I can’t say their name (If I do they or someone gets my Posts removed)

RKB

PS also really pleased you made some fantastic returns after you left here, well done. Will call on you if I am ever allowed by little Adolf to cross the Border.

Nomad

I wrote to our Nomad /Broker on the 10th December 2020 with a question about ForCrowd but almost three weeks later no reply.

At 2pm today I will throw my spanner in and I do not think FG, RE, PR or Nomad will have a nice 2021.

RKB

PS SAR incoming

Subject Access Request

When I was a Financial Advisor I used Subject Access Requests (SAR) for almost all my clients.

I managed to achieve about £40 million gross claims for my clients for miss-selling PPI. I had used SAR’s for a few years to assist clients obtain information from Banks about their personal information and then when I began assisting my PPI clients the office and in particular the Lawyers could not understand how so many of my clients were receiving successful claims without having to go through the Ombudsman. After I explained to the office and the Directors about SAR’s the Lawyers drafted their SAR and each client signed this form for each claim (sometimes 6 or 8 claims) and then after sending the SAR form to the Bank or Credit Card provider they were legally obliged to send the information requested.

RKB

https://ico.org.uk/your-data-matters/your-right-to-get-copies-of-your-data/preparing-and-submitting-your-subject-access-request/

Hypothetically 0.21p

Hello Petethefeet1, I think FG /FowCrowd etc think they can do what they want but I am about to put a spanner in the Crowd.

We will not know until FG decides to update us on how many shares he is handing over with the Lottery Ticket with the guarantee not to lose clause.

Let me hypothesise about the 7.5 million late reporting sale yesterday. If it was eventually to be disclosed it was a lottery winner collecting their winnings then the pay-out would be.

From sale £15,750 shares originally exchanged for £26,123 “loss” £10,373 and 90% to be refunded (in shares) £9,335 which at nominal 0.25p would be 3,734,100.

So sell 7.5 million and receive back 3.7 million and have £15,750 cash.

If you really want to get irritated with Convertible ForCrowd you could add the £15,750 to the known sales proceeds from the 13.5 million share sale and then you may begin to get the picture.

RKB

Convertible ForCrowd

So we buy 20% of ForCrowd in October 2019 but we don’t do placings?

So now with the first batch of shares sold by ForCrowd (that the 13.5 million) they are going to get replacement shares.

But the problem with this Lottery Ticket (the guaranteed you can’t lose) is that we (the owners of Clear Leisure) do not know if FG will make-up 90% of ForCrowd’s “loss” if the sale is below our Nominal Value.

It would seem to me that if FG can issue shares below Nominal Value then it is to the advantage of ForCrowd and not us ordinary shareholders.

It is a simple arithmetic calculation to work our 90% of the difference if we use a hypothetical example.

Let’s say the original 11.5 million share sale was at 0.25p the exchange price we know was 0.3483p so the difference is 0.0983 and 90% is 0.8847 which at 13.5 million is £11,943.45 and if converted at 0.25p then FowCrowd receive their winnings which is 4,777,380 shares but they also received the cash for their shares when “sold” which in this example would be about £33,750.

Again on this example the end result last January (even although FG has not handed over the replacement shares) ForCrowd we now have about 45,496,227 shares and the £33,750.

Now if I was really into the Convertible Loan note malarkey then I would be buying shares with the £33,750 and as we all know over the past year with the assistance of LtdAxis you could have many millions of shares at or below 0.25p.

So for fun what would he have been able to buy with his £33,750 if bought at or below 0.25p? A minimum of 11.5 million. Now I am not implying that ForCrowd bought in the Market because if they had then they would have had to RNS when they went over a threshold, would they not?

RKB

PS Hypothetically ForCrowd could have increased their shareholding 4.77 million minimum but probably by a lot more.

ForCrowd Disaster

When FG “invested” in ForCrowd in October last year, he handed “someone” over 54 million shares and a Lottery Ticket guaranteed not to lose.

This Lottery Ticket had the right to sell initially up to €40,000 of their 54 million shares at a price below the price they were “handed to someone” which was 0.3483p. Now if “ForCrowd” or that “someone” did sell then FG’s Lottery Ticket paid out 90% of the difference between the sale proceeds of the New Ordinary Shares and the value at which the New Ordinary Shares were issued to ForCrowd.

Now we know that ForCrowd sold some share last December and in January this year and “sold” 13.5 million but FG has not issued any replacement shares (yet) Oh incoming RNS tomorrow to say they also sold about 20 million recently. So our RNS will inform us how many additional shares are going over to Italy.

RKB

Good Morning Linandy1

Only just beginning. Think there will be a few phone calls today before I have finished posting.

Not selling but have a limit order in only for 150,000 at 0.28p just to prevent ForCrowd doing what they are doing. Will update you later if you are free.

RKB

Why I will not invest in AIM

Five years ago I began to invest in AIM Companies because I believed there was money to be made (and I made some in a few limited Companies) but over the years I began to notice certain troubling things that made me to have a re-think.

AIM appears to me that it is a means of transferring wealth from us (the mugs of buy their shares) to them (the Directors, The Nomads, The Brokers, The Market Makers and all their advisors including PR Companies)

Many AIM Companies do constant placings but CLP don’t do “placings” they do something else.

I have been burnt badly with Convertible Loan Notes (Chalenger Aquisitions) and I would ask anyone considering investing in an AIM Company to take a step-back if there are Convertible Loan Notes.

RKB

Good Morning Petethefeet1

Unfortunately for us it is not likely our share-price will hit 1p before March next year.

The problem is ForCrowd, one of the most unfortunate investments that our CEO & Chairman Francesco Gardin has actually made, allegedly on our behalf.

I have been divesting my AIM shares and re-directing the funds to dividend producing ones (or ones where the dividend will be re-instated after Covid-19 is less of a problem) I now only have two AIM Companies CLP and another one which has over £5 million in cash, no debt and investments of another £5 million. I will divest CLP when I believe I have achieved my goal.

RKB

Hello BigjohnnyWin

I am pleased to hear that your business is surviving in these most unprecedented times. I thought you had closed one of your establishments but maybe you managed to somehow survive and keep them all open.

I am also pleased that you managed to increased your funds invested here after you exited but to re-visit us to rub our noses in it informs us all of your true nature.

I wish you well and hopefully it will not be too long before you are able to pull pints again now that we have another Covid-19 vaccination approved.

RKB

This Sunday

This Sunday is the day that all quality Newspapers make their choices as to what share they are “tipping” to be the winner for 2021.

Which journalist will have done their homework and worked out that Metro Bank is one to tuck in the Santa Sack?

RKB

Director Share Purchases

Under the Remuneration Committee Report (page 80 of recent Annual Report) they said “We are proposing to introduce formal shareholding guidelines for Executive Directors of 200% of salary. In line with investor expectation and best practice”

Daniel Frumkin CEO was officially appointed to the CEO position on 19th February 2020 (after initially being Interim CEO from 1st January 2020) His new base salary was increased slightly to £740,000. This means Dan has to purchase £1,480,000 worth of shares.

Dan made three purchases of shares in 2020 but why three?

First purchase: 500,000 shares on 2/07/20 cost £570,509
Second purchase: 1.5 million shares on 4/11/20 cost £889,650
Third purchase: 350,000 shares on 5/11/20 cost £209,020

The total of the first two purchases equals £1,460,159 and including the third purchase it comes to £1,669,170. This means that Dan purchased almost £190,000 more shares than he had to (he did buy them all at a good price and his overall average is about 71p)

RKB

PS Will we see an RNS at 7am to say that the trade at 16:41 yesterday was actually a Director purchase of 555,000 shares for £739K? Who earns over £370K?

PPS Good morning Cuddothisnow, with regards to your Post at 22:10 all I can say with confidence is they will allocate some of the £3 billion to RateSetter and will use the rest wisely. It would be good to re-purchase some expensive Bonds but whatever they do it will benefit all LTH.

Mrkag

You are wrong, our share-price will not crumble and there are several reasons for that.

The sale of over £3 billion of Mortgages to NWG for a premium is earnings enhancing and there is a capital gain of over £83 million which will all come through to the bottom-line in this year’s accounts, which as you know is only 9 days away.

A listed Company has to make their capital work for them and when there is excess capital the Company have to make decisions as to how to deploy that capital. Now Mrkag as you are so knowledgeable (we know you have Posted before) you will be aware that the options available to Daniel Frumkin CEO are:

A) Allocate some capital to RateSetter for their unsecured lending clients at over 400% more than what the Mortgages were returning.
B) Re-pay some Debt (Bonds!)
C) Re-allocate some for further Mortgages.
D) Pay a maiden dividend.

The above are some possibilities and I am sure you, with your knowledge can think of a few others. Personally I do not believe there will be a share-buy-back and the maiden dividend will be paid in 2022.

Theosus you were correct on the 13,000 Mortgage customers that were part of the £3 billion sale, I did not doubt you but I had not had sight of that information but as we know from yesterday’s NWG RNS it was correct.

I wish all our contributors to our B.B. (excluding LCR) a Happy & Healthy Christmas and hopefully we will all be able to share our views openly and under our normal Nom De Plume.

RKB

PS Managed to pick-up a few extra shares yesterday and this morning but don’t think there will be many further opportunities as we say good-bye to 2020.

No chance.

What part of the “Excellent RNS” did you not understand?

You remind me of Last Call Rising and rising is what is on the cards.

RKB

Well I did smile at the number of coffee beans comment and did laugh.

But

But no matter how you look at the news of our £3 billion divestment of Mortgages some of the funds will be directed towards unsecured lending with our own company RateSetter.

Normally anyone who is a holder in MTRO would in my opinion be pleased with our “Excellent RNS” but it appears you have an issue and it could be Covid-19 and lack of taste or smell (maybe you need to self isolate after tomorrow)

When you emerge from isolation you will know you are ok if you can smell the coffee.

Enjoy the remainder of the weekend Theosus, I wish you well and a speedy recovery like our share-price.

RKB

Good afternoon Theosus

I calculated the total number of Mortgage Clients as 15,225 if their average Mortgage was £200K and as all my RateSetter Calculations are based on about one third of the £3 billion + being utilized by RateSetter for Unsecured Loans. I do not recognise your “13,000 customer mortgages” but going on your 13,000 then the average size of their Mortgage is then about £234K and then we would not be able to sell a new Mortgage to 4,333 clients instead of my 5,075 but this “new calculation” would then result in even less fees to MTRO if the funds were allocated for Mortgage Lending (that is the £999 fee)

Maybe you could just use the spare £2 billion + for your offset!

RKB

RoE

Return on Equity

Some number crunching:

From the “Excellent RNS” we know we have divested over £3 billion of mortgages (and made a capital gain of about £83 million) and we still retain about 66% of our Mortgage Book.

Any figures in the following calculations are only my estimates purely to calculate the potential incoming benefits over the next year or so.

I have assumed an average size of each Mortgage to be £200,000 and if it was £200K then our £3 billion sale of Mortgages would equate to about 15,225 Mortgage Customers. Let us assume that Daniel Frumkin CEO “allocates” one third of the sale proceeds to RateSetter over the next financial year (2021) This would mean that we would not be able to re-allocate this £1 billion to New Mortgage Applicants and therefore we would not “sell” about 5,075 new Mortgages and would be deprived of not only the interest we would earn but also the Mortgage Application Fee also which is on average about £999 but it is £0 if you are an existing Mortgage Customer.

On £1 billion at say 3% APR and 50% paying a fee this could have produced a return of £30 million in interest and fees of about £2.5 million (2,537 X £999 = £2,534,463) total about £32.5 million.

Now if you go to the RateSetter site and look at what they charge for their unsecured lending. Typical loan £3,000 over 4 years at 8% fixed and a fee of £165. That is an income in the first year of £405 on £3,000 which is 13.5%

Now if we were to assume the average loan size with RateSetter was £10,000 (it is not but I do not want to factor in too many fees of £165) then our £1 Billion could be lent to potentially 100,000 clients generating fees of £16.5 million and the interest generated at an average of 8% would be £80 million which would give a total return of £96.5 million.

To have a potential gross return of almost £100 million on only one third of the funds we are receiving you may begin to see the massive upside potential of owning an unsecured lender such as RateSetter.

RKB

https://www.ratesetter.com/borrow/personal-loans

Just scroll down a little and you will see their quote for a £4,000 unsecured personal loan.

Excellent RNS

In our Annual Report to 31/12/19 on page 24 there is a break-down of our Mortgages. From our “Excellent RNS” last night we are informed that up-to £3,045,000,000 of Residential Mortgages are being sold to Nat West for about £3,128,000,000 which on paper would be up-to an £83 million gain on the sale.

Last year our Retail Mortgages were £8.493 Billion and including Retail B2L it was £10.43 Billion. Our Interim Results reported a decrease of £240 million to £10.19 Billion. The figures are not separated for Residential & B2L but taking an average 81.43% of the reduction of £240 million would mean that Residential Mortgages had decreased by about £195.5 million which would mean they were at about £8.298 Billion.

From the “Excellent RNS” we can then calculate that the Residential Mortgages being sold on are about 36.7% and we will retain about 63.3%. So after some minor adjustments by MTRO & NWG you may find that we have divested about one third of our Residential Mortgages.

From the “Excellent RNS” we are informed that we were making about 2.08% gross or about £63.3 million. But we are informed that we are being paid a premium of 2.7% gross on the Book Value or about £83 million (I calculate £82,215,000)

So what are they going to do with all the funds after they are received? Well Daniel Frumkin CEO said “The sale of part of our residential mortgage portfolio will provide us with further lending capacity and enable us to shift our asset mix and expand our unsecured lending portfolio, following our entry into the market with the acquisition of RateSetter earlier this year.”

What I believe this really means is that our Return on Equity will increase substantially and as such our “Shorters” will be given short shrift over the coming weeks and Metro will begin one of the fastest re-rates on LSE.

RKB

PS Good afternoon Theosus, new average is now £1.09 and still below the average cup of McD’s pre Covid-19.

Excellent RNS don’t you think Theosus?

I increased my holding by 116.16% this week. Not calculated the new average but I will let you know but I believe it’s still below the previous McD’s price of a coffee pre Covid-19.

I know you just hate my number crunching but over the weekend I will attempt to calculate what it means (the sale of the mortgages and the impact it has on Rate Setter LENDING)

Normally I only drink 3/4 of a bottle of Red on a Friday night but just for you Theosus I had the other 1/4.

Looking forward to £1.40 by Hogmanay.

RKB

I know him.

RKB