Member Info for Therosy1

Darton, half-year report is now out and showing a 44% increase in option premia.

I am thinking about taking a small profit in BSIF to increase my holding of HFEL.

London Stock Exchange shows trade price at 123p for 9194 shares. They don't have a buy/sell indicator or what the bod/offer was at the time.

DYOR

My average buying price is about 134. But I have been in since 2021 and enjoy the quarterly paydays!

All my investments are currently for dividends. Despite all the ups and downs of the Market, only one (VSL) is now paying less than when I first invested.

RECI is a solid addition to a diversified portfolio and long may it continue.

All imho and dyor etc

TrekMadone, you must be a happy bunny this morning?

If one has held the shares for 20 years, then it is probable that one would have been paid almost twice the amount of the initial investment.

Or if one had put the money into an Annuity, the value would be the same now as it was when the original investment was made.

From a personal point of view, while it is never good to see the value of my investments go down, I am in for the long haul and as long as the dividends keep coming, I am happy. In the case of HFEL, the dividend has been steadily rising in that time, so I am doubly happy.

Each to their own.

GLA DYOR etc

Another unexplained drop this morning. The way it is going, we will have to send them some money every day when it drops below zero :-0

Thanks Richard08. I saw that but I am not so sure that the two are directly connected.

HEIT is probably more invested in battery storage than others such as NESF, SEIT and BSIF but all three are not benefitting in the same way - which is a pity as I own all of them but sadly not HEIT.

I don't know what caused this today - but I like it!

Let's hope that it doesn't fade away like so many other false dawns.

GLA

@alibaba42 I'm an accountant. When I invest in a company, I like to know how much of the net assets belong to me as a shareholder. Whatever the company does or has done with the cash is one thing. What it has told investors it is going to do in terms of dividends in the future determines whether I think it a worthwhile investment. Clearly, if there are not sufficient distributable reserves (whatever they are called in the balance sheet), then dividends cannot be paid. I merely pointed out that GSF has sufficient distributable reserves in my initial post.

@clissold345 seemed to want to understand the nature of a balance sheet.

"clissold345 - Basic accountancy/double entry bookkeeping. A company has a Balance Sheet. On one side, you have all the assets and liabilities listed to give a 'net worth'. On the other side, it tells you where the funds came from to pay for the 'net worth'.

Those are (without being specific to GSF), share capital provided by ordinary shareholders, the share premium account, which is the difference between the par value of the shares and the price paid for them, bond holders, retained profits or losses accumulated over the years.

Put another way, the Company does not 'own' anything. Everything that the Company has belongs to those who financed it and they will be paid everything when the Company is wound up. In the case of GSF, the only capital finance raised has been from Shareholders.

I am not sure if that helps but I am sure that there are better explanations through a Web Search.

GLA

@clissold345 The Capital Reduction Reserve is part of total Shareholder Funds. It has nothing to do with undrawn borrowing. The whole Shareholder Funds section tells you what the Shareholders would have if all the assets and liabilities were realised - turned into cash.

The different categories are purely accounting terms and perhaps governed by regulation. Simply put, if all assets and liabilities were settled at 30th September 2024, the Company would have £507,556,098 available to be given back to Shareholders - you and me - at the rate of £1.00 per share.

DYOR

Dividends have been coming out of Capital Reduction Reserve. At 30th September 2024 half-year report, the remaining balance was £57.6 million - enough to pay the remaining dividends for the year. Add to that the almost £29 million Revenue Reserve and it can be seen that there is enough in the balance sheet to meet the published commitment of a final 4p.

All imho. DYOR

Very close, Slikoil.

RNS out - ex-div 13th March with payment 1.58p on 31st March.

Some are more sensitive than others.

Ok, your meaning was not clear in the way that you clarified.

And ToD's reply was factual, giving an answer to your perceived question and was viewed by me with a smile. I did not sense any "micro aggression".

As an income investor myself, I would dump a share that replaced dividends with buybacks. The share price can fall by half as long as the dividend payment is maintained as far as I am concerned.

With no malice intended. :-))

I am not disappointed with the dividend. It equates to 3.8% based on the buying share price of 28p.

Even if that was all that was received in the year, it still represents a decent return versus what is available on a bank deposit.

Assuming a regular quarterly (diminishing) dividend, the rate of return is even better. For me, investing for income, the quarterly cash received is reasonable with the potential for capital appreciation is worth the risk. Selling now and investing elsewhere would not provide enough income to counter that risk. I am happy to hold until the forecast final asset sales in 2028 (if I am still here) :-))

The risk is in the capital depreciation. Write-downs come every quarter. Surely, that must reverse at some point if assets are being sold at par or better? Even from their low valuations, there is a buffer of circa 50% to share price.

And going forward, gearing has been eliminated. Apart from the effect on net profit, it means that future asset realisations should mean another capital repayment via the B-shares.

Don't get me wrong - this is still a dog and I would not commit any more funds to it.

DYOR and GLA

Very disappointed to see the slight uptick after the RNS announcement yesterday was short lived and we are back on the downward spiral.

Personally, I am not interested in speculation about possible takeover of GSF. All I want is for the share price to reflect the value of the Company's assets and the continuation of a 7p annual dividend that hopefully rises with inflation over time. That's not too much to ask, is it?

Yes, very welcome and the share price has responded well - so far.

Thinking about it, the long term benefit to shareholders would be by buying back shares while they trade at this ridiculous discount to NAV. I know that there are rules to be followed so they could not be bought all at once, but there is the potential to add value to remaining holders by targeting 15% of the issued share capital and still leave room for a reduction in debt.

All imho. DYOR etc.

GLA

...has now been received.

As of the time of writing, the only two reported share trades have been purchases.

From my own perspective, I am glad that I did not put any more money into this. What really gets my goat is how the Investment Manager has managed to convert asset backed loans into equity that has been written down to zero. Surely it would have been better to use the asset backing value to recover SOME of the debt?

The Board and Investment Manager have forfeited the right to any confidence in their ability to restore any value to Investors. God only knows what is going to happen to any future dividend or return of Capital.

This is currently the worst investment decision I have ever made in 45 years of investing.

GLA

Sorry, missed a zero. From 8,400,000 to 11,250,000 - now over 4%