Member Info for WolfofWarks

If it falls tomorrow I'm having a nice top up. US markets recovered today though so momentum might carry into the FTSE tomorrow.

There's an article on the apple app by money week in which they are basically saying that the 10% yield is because there is little prospect of any growth due to one half of the business being outmanoeuvred by robots apps and the other have drawing it's income from legacy operations.

That said the whole of the market looks to be down with the probability of a recession seriously being priced in now.

People’s interpretations of what is happening vary massively. I’d say Russia have made a right mess of this and have completely under estimated the resolve of the Ukraine and it’s people, plus how much help and compassion they would received from ROW.

Macro doesn't make sale and leaseback for an investor all that attractive at the moment either.

Usually a company would just keep refinancing or if it had excess cash start paying down debt.

Worry now is what happens when they come to re-finance as the number of options must be limited and the underlying asset on which to fix any finance doesn't offer much security.

Is there any finance secured on the Helios building Hexam?

"If equities are cheap then demand will be high but earnings will be low unless investing in the financial sector"

If there us a proper recession though their credit risk will fly up.

If you think about it rationally it makes perfect sense for someone with a very long view, say five to ten years, or holding as part of tracking an index, to lend their shares out to shorters and capitalise on short to medium term volatility.

Don't forgot they are collecting interest and presumably associated fees along the way along with any dividend (although not in BOOs case).

It all depends on what a post war relationship with Russia looks like.

I can't see a situation where a majority owned Russian company will be allowed to have the prominence it once had as a flagship FTSE company - perhaps a much smaller presence outside the premium listings.

Simple answer - makes you’re own decision. Listening to other bulls is a fools errands as they are all working in their own self interest.

Learn what you are doing and how the economics work.

I’ve just bought a little more btc to see where it goes.

Serious talk of 75 point rate increase in the US now which might well help the market find a bottom.

I found it incredible that in a power hungry operation they they haven’t already hedged their power costs.

I mean it’s one of the most basic steps.

Charging for returns in inevitable in order for the low cost model to survive.

Ted baker have been charging for a while.

The point is a stock with a 10% dividend yield isn't going to deliver you decent capital growth, because companies that do are reinvesting and not returning so much money to SHs.

I know why they are doing it and have been reading about the last commodities super cycle where the big commodity players invested large amounts in new projects at what was the top of the market and therefore paid premium prices only to deliver moderate returns.

A business should have ideally as close to zero cash as possible. Any excess should either be reinvested or returned to shareholders.

Apple are sat on a couple of hundred billion or something daft like that.

It's access to cash that's the important thing, not what's on the balance sheet at any given time. It also depends on payment and receipts cycles.

For example some business like Boohoo pretty much get paid for product straight away but then may pay their suppliers on 60 days at the end of the month. A company might have slightly better terms and pay there suppliers 60 + 10 meaning their balance sheet would look better cash wise but their current liabilities would be higher.

It's the levers you've got to turn current assets quickly into cash and what facilities you have in the back ground should you hit a rough patch along with what capacity you have for further increases in financing from the markets.

You would think that providing the NDCs start paying back pretty quickly the current ratio will improve. However it's what we thought were short term headwinds are looking more like medium term in terms of freight, inflationary cost pressures, etc, along with a likely recession brewing in the back ground. The future is very uncertain at the minute and it's impossible to call anything like a bottom at the moment.

Biggest indicator for me now is when the shorts significantly reduce.

"That because hard working taxpayers support all the unwashed through the benefit system. Why work when I’ve got all I need without getting off my phat arse."

I work at my local foodbank and homeless shelter once a week. Those who are stuck on benefits are really not living their best lives, Universal Credit is a endless spiral and is almost impossible to get off, especially if you have any of the health problems some of these people live with on a daily basis. they are not all druggies and alcoholics.

I'm far from a lefty either.

EBITDA is a weasel measure; adjusted EBITDA is worse. It's a strange opinion that either is the 'best judge of cash'.

Alternatively, isn't the best judge of cash...well, cash? You count it and it's either there or not. Unlike EBOOTDA, it's far harder to obfuscate and confuse the faithful with.

It the best judge of cash from the the core operations of a business, Looking at cash this year vs last takes into account movements in the balance sheets like fixed assets purchases and sales, financing, increases in debtors, creditors, etc.

What you ultimately want to know is if BOO sells a dress for £10 two much does it potentially return in cash at an operating level.

If the core business doesn't make any money or doesn't have a decent roadmap to profitability then nothing else really matters.

I always think of the PE as the price shareholders are prepared to pay now for future growth in SP in the future.

So in the case of a mature stable company like Rio with low SP growth I then look at the value proposition or the dividend. So the compensation you get for sticking your money on this relatively safe bet is a 10% dividend yield.

"Do you think most people are worried about the macro conditions I don’t think so the only people who are work for financial cartels and they know tight margins mean low dividend yields to line they pockets with"

Most people don't, but if they did they wouldn't be sitting on heavy losses this year. The smart trading money started moving into value at the back end of last year.