The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Don't think I agree Damian.
When a shorter "loans out" a stock, and then sells, there is the short who has sold and the new buyer.
So, when the shorter closes, he buys off someone, who must sell. He then replaces his "loaned" stock.
It does add liquidity during the short though, as the "owner" has effectively allowed his stock to be sold. Without shorting it is unlikely the "owner" would sell. It is the scurge of the LSE, with "loadofmoney" Americans ripping off the British investor. One of the reasons the FTSE is in such a bad way IMO, with so many British companies undervalued.
Funds will take a view as to the relative merits of two companies, and fund their investment in one by selling another. The big US shares are pumped up in value by shorting UK stocks.
All IMHO
The shorts on here won't want to be adding liquidity for the company to buy back. They have been keeping this stock very liquid in order to keep the price down. They will need to dig very deep when the buy backs start to stop this moving up to fair value.
Again it's just my opinion, having watched many shorted stocks. Shorters provide volatility and generate opportunities for careful investors.
Buy backs are a more tax efficient way of returning capital. However Manolo said at the last presentation that they were limited to 10% of free float or around 28m shares per annum. So not sure if they can extend the buy back.
Personally happy with the top ups in dividend.
Some interesting articles on oilprice.com
India struggling to secure cheap Russian Oil
Plus
The market is anxiously awaiting a decision from OPEC+ on the plan for Q2 2024. The group has yet to divulge a date when it will meet to discuss the issue with its members, although April is quickly approaching. OPEC+ will need to determine whether it will stay the course and extend the current voluntary production cuts into the second quarter, whether it will deepen the cuts, or whether it will scale them back or scrap the cuts altogether. Most industry watchers favor the first option, arguing that OPEC+ has no choice but to extend the current level of production cuts if it wants to keep prices from falling.
Tuesday’s price rise does provide OPEC+ with a bit of cover, although OPEC+ still insists it is not managing prices but managing supply based on market needs.
Totally agree the business update is key. Have a look at the growing NAV in the last 3 years results.
The share buyback will help also reduce the free float in the hands of retail investors. It will make it harder for the declared 1.75% short to buy back, which is probably the tip of the iceberg, with many small retail shorters on here, and other funds under 0.5% short not needing to declare.
I'd like to see a progressive dividend as well as a progressive NAV. That will definitely send out a strong signal.
The shorters will always be trying to get you to help them by selling.
Just my opinion.
GLA
I considerably reduced at 71p a while ago. For me I was disappointed by the broken promise of a progressive dividend.
However, to be fair they are growing NAV at quite a rate. So I've re-evalated on the latest news, and decided that the buy backs are likely to have a significant impact.
Therefore I've topped up. Not yet back to my original stake, but I'll see how the next month pans out.
The current dividend looks reasonably safe as well, which is good. Maybe they will start to progress the dividend, as promised when they restarted it at a lower level.
GLA
Not sure why the big sell off after the results. NAV reduction beats MSCI Index. Fully covered dividend from earnings at 8%.
Seen comments about the Starbucks deal. However I believe the benefits of having a Starbucks on this estate was covered at the last investor meeting. I believe its one of those win win deals, that increases desirability of the complex as a whole.
GLA
With Brent hovering around $83 that's great news. Only just gone ex divi and looking forward to the next one! It was the only one at the "base" level of 1.5c last year. Will be very interesting to see if that increases this year. I suspect it will given production numbers combined with oil price.
GLA