Member Info for Temple_of_Doom

I'll agree the HFEL dividend should be cut:

Results 2023

"Revenue

Dividend income from companies held in the portfolio fell 8.2% and income from options was flat compared to last year. The fall in revenue was partly due to the strength of sterling, but also from the lower levels of distribution from energy and materials companies as the price of oil and industrial metals declined."

In paying say 90% of earned income each year, with reserves boosted by 10% each year and

"Well at least they have now admitted to artifically boosting dividend income by "rebalancing" the portfolio in cum dividend stocks (thus causing capital depreciation). Thank you again for alterting me to this destructive strategy, which prompted me to sell my holdings in January."

Always impressive when some are able to predict the future with flawed reasoning ... if not a little sad in trying to reason otherwise.

HFEL Results 2022:

"our portfolio companies achieved a good rebound in dividend payments and our forecast for dividends in the current year is cautiously positive. After paying the dividend, we will once again be adding a moderate amount to the revenue reserve, which we use to smooth the dividend when market conditions are severe."

Revenue

"Dividend income from the region was strong over the period, boosted by the weakness of sterling. Revenue from dividends received was up 9.2% compared to a year earlier while option premium declined 5.8%. Total income was up 8.0% and revenue per share rose 5.1% reflecting the increased number of shares in issue."

A 33% correlation aka Seplat and Brent is highly significant especially given Seplat’s earnings dependency on oil while the black market rate gives a share price of 155p … where a 20% premium about right from memory.

The share has held up well … but looking around, I’m not tempted yet.

I never seem able to hold onto these smallcaps when they rise for long enough …. But 20p is jot out of the question in a tear or teo.

Still a gift getting a sale price above buy price late yesterday on ex divi day. Bailed those bought in the last 30 minutes looking for 85p today.

GLA

Nutters have arrived .... just got the filter out ... suggest you do the same.

Tomorrow is inflation figures I believe ... reckon someone has leaked the news ... looking for sub 4.8% if so we will get another push I reckon before profit taking.

I started buying and holding late 80s earlier in the year ... average down to 71p including dividends ... way oversold post July ... will look to get average hold sub 70p then stick. 10% yield is happy days.

Looks to me as though someone has leaked tomorrow's inflation figures ....

"(using the official rate)" - Use the black market rate.

For the brave HFEL ... has taken a spanking with Far East woes ... but returns 12%.

Dartron …. Pension paid off? Put the mortgage money into a SIPP if not doing so already … and claw back some of those stealth taxes being paid.

Thanks for the tip.

HFEL has always been an "income fund" ... it follows that paying out a high yield gives limited opportunities for growth.

It's all very well pointing to the share price being down over the past 6 years, but equally, the share has returned 112p in dividends over the same time period ....

.... looks a buying opportunity to me ... and I've taken it.

Good luck holders.

“ Looking at similar investments in AAIF, JCGI etc gives me some comfort that’s it’s not just us‘

Quite … an argument I also made below.

Nothing to stop people trading this share …. I’ve done so last two years …. average including dividends is down to around 220p from 327p when I first bought in … so around 60p up from a buy and hold strategy.

If when USA/China sort out their differences share price rally will be back on the cards or if not and with Trump looking to inflict more damage if he gets in … plus other regional woes … the share price will fall further.

That’s the market …

"it might not be unreasonable to assume an average price from the starting point (301.5) to the finish (281.0). that average is 291.25, or 292.25"

The numbers are posted.

"The Company announces that it agreed on 28 July 2023 to allot 450,000 ordinary shares at 240.50p per share, each fully paid under its block listing facility. The net asset value per ordinary share as at the close of business on 28 July 2023 was 233.3p."

No need to guess. A bigger fund means fixed fund costs are spread across a broader base - that's the saving for investors. A bigger fund also means higher revenues for the fund's management in terms of fees - that's the gain for the fund managers.

It is unreasonable to "guess" when necessary information is available to avoid "guessing". It's also fundamentally dishonest to make a "guess" to support a flawed argument.

The current yield from HFEL is close to 12% .... similar yields can be found elsewhere ... GCP being one, in which the heavy discount from NAV is leading to management buying shares at a discount.

Investment trusts like HFEL should buy shares back when trading under water, and sell shares when trading at a premium.

I was referring to page 7 of

https://cdn.janushenderson.com/webdocs/Far+East+Annual+Report+Web+SECURED.pdf

Last paragraph. A year out of date, but recommended reading for some here. Let’s trust they take their time to digest the contents.

Ade2a did not use the word “inconsistent”, but I did.

Although stupid does indeed mean stupid and would be the “same” in more ways than one.

I suspect the dividend will be cut here looking at the change in holdings …. Australia is now the country with the largest HFEL holding from recent newsletters with China and especially Taiwan holdings reduced and comforting if not a no brainer.

But such is speculation for the future and nothing to do with the utter balderdash written by some of the posters here the past few days.