Member Info for TerryM1

The problem with the UK and a lot of the western world is the people in charge of companies, funds, governments, NGOs etc are more interested in virtue signalling than doing their job.

The ESG issues are especially relevant for the UK and Aviva and while these policies are being pursued the return for investors will be poor. The response from these companies/funds is to try to influence Oil and Gas as well as mining companies to conform to their policies which will bring down the rate of returns or sell out of these companies. I tend to think this is deliberate policy to try to reduce the returns on these companies so their ESG investments don't look so bad. I have taken this up with a Aviva a number of times over the years and I always get polite replies but no proper explanation for the poor performance, not even an apology, here is an extract from my last reply

“Aviva is fully committed and proud of its record on supporting climate related issues and charitable organisations that share our values and purpose. We are convinced that using financially material environmental, social and governance (ESG) information in our investment processes leads to better-informed investment decisions and better risk-adjusted returns in the long run; which is in the best interest of Aviva and its shareholders.

Aviva cannot be successful in isolation and commitment to protecting the planet and supporting the community in which we are based makes good business sense. Section 172 Companies Act also supports this view in requiring Boards to consider the needs not just of its shareholders and customers but also its wider stakeholders. Our current CEO, Amanda Blanc, has set out her strategy focusing on growing the business, putting customers at the heart of everything we do, improving efficiency and ensuring the sustainability of the business.”

This was received December 2022 when the Share price was £4.45, working well then, perhaps for Aviva but not the shareholders. The problem with a lot of UK companies is that they are run for the benefit if the directors and staff pushing their political policies and the shareholder only becomes important if there is a threat of a takeover.

My dividends are going into DEC, yield 15% less US withholding tax (15% with W8-BEN or 0% in SIPP), the dividends are safe for at least the next 3 years due to hedging. Well run company but somewhat unloved at present, as always DYOR.

Https://finance.yahoo.com/news/futura-medical-absolutely-delighted-us-145230317.html

Looks like getting ready for US sales, does not make sense with market up and this news shares are down but I in for the long game so not bothered.

Keeping cash or buying shares in companies mostly operating in the UK is looking more like a mugs game.

I decided during lock down to change my investments strategy, it was so obvious that Rishi giving free money away funded by printing would cause huge inflation and the massive costs of lockdown would mean a tax grab especially on companies (as they don’t vote in elections). I decide that most of my new investment would go into multinational companies with stuff in the ground i.e. miners and O&G. Stuff in the ground for inflation proofing and multinationals to make sure that when a country decides to use you as a cash cow and greatly increase taxes (UK WFT, Corp tax etc) you can move the profits somewhere else so still make good money.

For the UK you can add in all the additional ESG costs causing high energy costs with ESG reports just to list on the London Stock Exchange even if you do not operate in the UK and if you make good profits in the UK you will get bad press and calls for more taxes. No wonder the London Stock Exchange is losing out to other major Stock Exchanges.

Inflation in the states is not half ours, it is almost a third, 8.7% compared to 3%, well done Rishi, Hunt and the BOE.

With the public sector pay rises announced today (right or wrong) from 6%-7% + one off payments + the additional public sector pension scheme costs and 10.1% rise for benefits last April don't expect UK inflation to fall much soon just more taxes.

Winthrop

"I have found a way by using a etf (no stamp duty) that is reasonably secure and is paying over 3% https://www.google.com/search?q=csh2&oq=csh2&aqs=chrome..69i57.3517j0j1&sourceid=chrome&ie=UTF-8"

As far as I know if you buy or sell a fund in IWEB you will get a £5 charge so a total of £10 so this will work for if you keep a reasonable amount in cash a time.

For HL you do not get charged to buy and sell funds but a custody charge of 0.45% against HL interest of 2.53% so need more than 2.98% to be better off. Using Google finance this fund returned 0.37% in the last month so 4.44% no doubt a bit more with compounding so worth doing if you have go more than a small amount in cash.

Anyone else have an views on this.

Capita (LON:CPI) shareholders have endured a 84% loss from investing in the stock five years ago

https://finance.yahoo.com/news/capita-lon-cpi-shareholders-endured-122703943.html

This was just after JL and the gang took over Capita.

As a holder from the IPO I have seen the SP reach £13 for a short time, it was in the £12 range for a reasonable length of time.

However these are pre rights issue prices so a lot/if not all charts show the rights adjusted price which is obviously well below the above prices.

There were plenty of chances to get out at £12 but the £13 windows was small and either shows great skill, luck or perhaps something else i.e. we can all predict the lottery numbers with hindsight but very few pick them before the draw.

We will know in a few weeks if JL has started to turn this around or is just spinning his usual yarns and selling more of the company off to pay for the BOD remuneration packages. Until a reasonable dividends are paid on a regular basis without the need for more sales this is no turnaround and JL has well and truly failed the shareholders and only proved he can asset strip and line his own pockets.

However even if results are good the hacks could still prove expensive and as usual no proper information on this issue, it is ironic that Capita own pension scheme was hacked as recently reported in the FT. I don’t think we will see much improvement until the cost of the hacks are known, the city does not like uncertainty and fund managers will not want to look stupid buying shares in Capita to later find there are large bills for the hacks. There will be a shadow over the share price until the BOD comes clean or the full cost of the hacks are force out of them. One good sign as already mentioned is when the BOD are buying the shares which we have not seen for a time. If the BOD have no confidence io Capita how do they expect anyone else to have confidence.

Although I do not want to take this offer I believe there is no choice or risk getting stuck in an unlisted company however I think this will reach 90% so like it or not you will be bought out.

Once this takeover was announced I bought some more shares at £5.25 hoping for a bit of a fight and a better offer but at worst make 10p per share as it was obvious he would get over 50%, tried to buy some more after the 29th June announcement but gone up to £5.28, will pick up a few more if falls back to £5.25.

Https://citywire.com/investment-trust-insider/news/inpp-reassures-investors-amid-thames-water-crisis/a2420655

Trenners

"It's coming up to the 1st anniversary when JL predicted the CPI share price would return to pre-rights issue of 97p

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got everything crossed that JL is good to his word ..."

Well that would be a first since he took over as CEO, as I have posted many times, this is what he said in the RI over 5 years ago

"The successful implementation of the new strategy is expected to generate at least £200 million of sustainable annual, post-tax free cash flow in 2020."

If there is no debt why are they still selling of the family silver, perhaps JL thinks he deserves a bonus.

Since when has Rishi Sunak kept one of his promises, seem to remember he made a lot when he lost to Liz Trust, what happened to those.

From CMS Guide to Mandatory Offers and Squeeze-outs

When triggered, a mandatory offer would have to be followed by an offer

document within 28 days. Normally the period would be much shorter –

perhaps one or two days.

— The offer must remain open for acceptance for at least 21 days from the date

the offer document is published. If the offer does not become unconditional

as to acceptances (i.e. the bidder’s stake in the target company, taking into

account both its existing holding and acceptances of its mandatory offer, is only

50% or less of the total number of voting rights), the bidder can, but is not

obliged to, extend the offer for a further period.

NewKOTB

TerryMC1 is trashing DEC (another share I own) on it's board but they are wise to it as can be seen by the posts

Unfortunate for me his username is close to mine which has caused confusion in the past.

Serco share price not great either, that is true, but

In the last 10 years Serco share price peak around 500p, Capita 750p (I think this takes account of rights issues).

Serco Rights issue (1 for 1) 101p per share, Capita (3 for 2) 70p a share.

Serco paying 2 dividends a year, Capita none.

Serco share price now 154p Capita 28p.

Serco Rights Issue raised less proportional than Capita's and therefore less dilution and cost to shareholders.

Also Serco shares have a higher price than their Rights Issue and never went much below the Rights Issue (may be a few p) and those shareholders that subscribed can also add in the dividends.

Although Serco’s performance is very poor it is fantastic compared to Capita, in fact if Capita went bankrupt instead of going for the rights issue the shareholders who subscribed would be far better off. However fantastic money earner for JL and the gang.

Serco has Nicholas Soames Churchills grandson and connections all over the tory party as CEO, may explain why they are doing so well compared to Capita or perhaps they are just better run and paying 2 dividends a year.

It is difficult to tell how Primacy Bid allocates as I believe this is different for each issue as it probably laid down by the company selling the shares in this case SRT. Not always the company you buying the shares in as sometimes shares sold by the holder as can be seen from the recent London Stock Exchange issues.

If you own shares in the company you will be given priority and will probably depend on how many you own and the amount you applied for.

As a general rule the bigger the application the larger the scaling back.

I put in for 2 lots and got 30% overall, however I got the 2 repayments (usually get 1), one for the full amount subscribed and the other the difference between the payment and shares bought, this could be because the earlier application got priority as has been mentioned. My partner applied for 1/5 of my application and got 61% so one thing we do know in this case is the larger the application the larger the scaling back.

Was a pity that the small investors got heavily scaled back while the institutions got all they wanted, as always the small guy loses out.

From RNS

"SRT Marine Systems plc (AIM: SRT), a global provider of integrated maritime surveillance systems and digital navigation safety transceivers ("SRT" or the "Company"), is pleased to announce the successful completion of the PrimaryBid Offer that was announced on 23 June 2023, which was heavily oversubscribed.

Following the successful completion of the non-pre-emptive Placing of 9,220,000 New Ordinary Shares which was announced on 23 June 2023, retail investors have subscribed via the PrimaryBid platform for a total of 1,500,000 New Ordinary Shares at an issue price of 50 pence per share, raising gross proceeds of £750,000.

Directors' participation

Simon Tucker, a Director, has subscribed for 100,000 New Ordinary Shares by way of the PrimaryBid Offer at the Issue Price raising gross proceeds of £50,000."

No mention how heavily oversubscribed or allocations but can see director bought some shares, a good sign. The SP should now start to recover but will take a little time to fully get back there as obviously there will be some who will take a quick profit including those in the placing.