The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Your so wrong. Don't look at the II holdings as they are hopelessly out of date and II's sell very subtly so as no to cause a run on shares or alert others. The price reflects their worth in the market in that there is declining demand and the Market maker is trying to get people to buy shares by making them cheaper. There is also some shenanigans going on as it looks like a daily scoop and poop. These shares are a dog and a 50p share paint 15p in dividends is clearly rediculous. Whatever Randy's agenda is, he has materially destroyed the value of thew company by 70%. The dividend is totally meaningless unless the SP is stable which its anything but..
Why are they letting this company become worthless unless they want to buy it back but then why list on the NYSE? Whatever their strategy is they have destroyed shareholder value which come before everything including dividends which are meaningless if you stock continues to grow. Note Amazon and many other companies don't pay dividends as their share holders prefer capital growth. Whatever they are up to it adds up to failure.
All those that bought more. All those that can't see sentiment falling away. The dividend is now effectively useless as it's now. 27% but if you buy your investment will be worthless. All but the kind can see! I'm pretty sure all the IIs have fled given the company market cap is 1/3 of what it was.
Can anyone tell me, do they think they should wait for DNA 3 to wind up or cash in before Junenon the basis they might not get what they wanted for the residual aircraft. Also are there any seminar opportunities to DNA 1,2,3 or Amedeo Air Force Plus that would provide similar returns?
Name me one other company that would give 25% of its market cap away in dividends? Falling knives can be very sharp if you try and catch them.
Debt is also secured against an asset. If your company is worth zero, I can't see a bank lending on that and as the company share price is continually dropping, is that not of concern? "Since the price of a share can fluctuate with market demand, the value of the stock used to secure a loan is not guaranteed over the long term. In situations where a stock loses value, the collateral associated with a loan may become insufficient to cover the outstanding amount.{"
The credit facility is based on the SP, which is the value of the asset. IF the SP drops the asset drops and the facility drops. It's ever decreasing circles when your sp drops. At least its not junk value yet.
There are some things more important such as keeping your shareholders on side and not devaluing the investment they made in trusting you the increase the value of their investment, being up front around any pending news (he could have took the lead on that). You mush be happy then to have seen the SP slide over 70% in the last 12months!
Are you off your head? If the committee members are correct DEC won't be a going concern anymore but and your 26% will vanish along with your holdings. 100% of zero is zero.and the more than halving of the SP reflects market action on what their BoD has failed to have said.
Im reading a lot of twaddle about impeccable behaviour from the Bod-Hardly. They have failed to give the heads up to shareholders and let the market take its course and nail retail investors again. They could have gave the heads up but failed and the market is not impressed with Randy's statement yesterday. Im not so bothered about the SP in itself, except its ongoing decline without explanation which we now have. if the SP had remained stable no matter what level it was at then the dividend would be nothing less than spectacular. but i've never seen a company give 20-25% of its sp away in divide!-Big Clue and the Bod should be totally embarrassed around their handling of shareholders and the SP.
Not sure why DEC is £12.38/$16.36 on NYSE and £11.06/$14.10 on the fuse???
Also not sure that the RNS has steadied the ship? Seems the big bone of contention is why do the committee think DEC have only committed 10% of what they should have to well decommissioning-hence are they doing it properly? So sounds like sour grapes perhaps or anti competitive behaviour by DEC?
Either way Randy should and likely would have known this was coming and hence 20:1 consolidation and listing on NYSE ? Tomorrow market will reveal more. Terrible day for shareholders.
This has been sitting in the wings long enough for share holders to have been made aware of. Now you all know why the SP has been sliding and Randy kept quiet. I wonder if there is a case for shareholders to recover losses? If your still in then good luck.
Well there I was having G sold down and then seeing the price go up and DEC may have finally turned a corner. Seems to me Randy knew what the liabilities have been all along and used the sky high dividend to keep as many investors in as he can. There is a reason big oil sells off old assets. It's to pass off risk. Thankful, some wise heads mentioned this investigation was coming. But Randy should have told shareholders!
You really thing that will make a difference? A dog is a dog nomattwr where it's kennel is.
That dividend can only be good if you have wtriten off your capital investment. Who invests to lose over 50% of their original outlay for dividends. The constant slide will be iis offloading and they only have to notify if they drop below 3%. The BoD should be ashamed of treating stock holders like this without explanation.
AJ Bell
Midland boy, I am in a similar position so selling down. You couldn't do worse than take a look at Doric Nimrod two/three. They buy planes and rent them to emirates. 15% + divi -a lot more robust than DEC. Not all platforms will let you buy them though.
Not at all, but this stock has seriously underperformed and thanks to Randy his business is worth less than half it was when I first got in. If your so smart where is the good news, as obviously your ahead of the market on this one!
Problem is their business model. The only way they could compete is to rehire their workforce on new contracts but the union won't have that. They are So it's a slow death with the only saving grace is their property portfolio. Nobody would buy them out so they are left to the vultures to pick at their best pieces of business. Also with theft aparently rife even their parcel business isn't a safe bet.
Such BS as on this board at times. I have to laugh at those whos hands must be cut to ribbons with their falling knife purchases. I am sure there are much smarter folk than us out there and despite any home broker recs I don't see a rush to invest in this stock(quite the opposite), This stock is being treated like tobacco stocks who equally pay higher dividends to lure investors in, but their prices still go down. I've decided 60p/1200p is the cut off for me and I'll just have to lick my wounds as the divi will never make up for a stock in terminal decline. By the time the next divi arrives we will probably be at 10000/50p. But le