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Interesting how underweight from Barclays and shorting from others act to force the price down. It's almost like they are looking for a cheaper price to but back in at. Last September Barclays were overweight and very happy with Phoenix. Nothing has changed with the company. 🤔 Meantime the dividend is well covered and very good at this price.
Just watched an interview with John Cleese. He remarked at how he's now realised how important 'luck' is in our lives. People think they are a financial wizz when they've just been lucky. So many times I've made decisions which were right for the circumstances at the time but then changed when circumstances changed. Covid, war in Ukraine, Gaza. All change the investing climate and you're just lucky if you benefit from any of them.
Dividends coverage is based on the ability of a company to pay the dividend. The SP has no bearing on it. The only connection is if the SP falls because the company's finances are in difficulty. Then the dividend coverage can become difficult. That's not the case with PHNX, according to their CEO.
Institutions follow their company policy and will often automatically reinvest as PHNX is a high dividend return investment and institutions will manage funds for income or capital gain. PHNX will fall into the income group.
For Porsche's information the current SP is entirely down to the geopolitics. He and Toff seem to appear to deride us all for our stupidity when the SP drops. They disappear when the SP recovers. Sad cases. Who would go on to a forum to abuse others of their investment? Obviously them.
Government Gilts are the usual safe haven. Gold is just another example where money can be placed, not gain, but not lose.
My point is that all have risk. Even the 2008 banking collapse shows money in the bank isn't actually safe. Relying on the government to guarantee an amount in an account isn't much when the government runs out of money.
A well run pensions and insurance company has to be a good bet when they provide a dividend well within their means.
So I'm not sure why the recent crisis in Gaza should mean everyone pulling their money out of a company like PHNX. But that is how the market seems to work.
It will recover within weeks or days.
There's nothing wrong with the fundamentals. At times of crisis money moves into safe investments. Maybe government gilts? What if governments have issues for those gilts? Gold? Is it really all that safe? Maybe a share with a 12% annual return is a pretty safe bet?
Now should be a good time to buy. On Monday the dividend money is paid out and many reinvest their dividends. Some elect to do so automatically through their broker. Therefore it's likely the SP will rise next week. This is even more likely when it's realised how good the value is right now. The annual dividend return is approaching 12%, especially with the 5% dividend increase next year taken into account.
I really can not understand why anyone would bother to write such drivel as Porsche has when invested in this share. If he doesn't believe in it then why invest in it? If he's not invested then why bother to search out random forums to spout bile?
PHNX is a good company. It's just gone ex dividend with the corresponding drop in the SP along with a change in accounting procedure allowing Walter Mittys to attack the share.
It would be a joke except for the abuse and bile.
Nicknaim,
Indeed. PHNX and LGEN are in the same group of companies yet PHNX is the one getting hit. Maybe there are chinks in their amour with the new accountancy procedures that can be manipulated by shorters but it would seem many companies use the same procedures. I can only see this attack ending shortly as common sense returns. Many do reinvest their dividends and it will probably be at a good price. I see no reason for future dividends to be cut and so the % annual return will only increase.
If what Toff says is true then he's probably a very disgruntled investor who got in at 623p and is just releasing his bile on a forum.