Member Info for zac0_4

Simply asking a previous poster where he, or she, thought would be a realistic share price for this business. Why?

Lukee, I'd be interested to know where you think the market cap should sit. It's been in decline since mid 2017. Total returns over the last 3 years (capital and dividend) have been appalling -13%, -17% and -68%. This is not something that I consider to be an investment any longer, to me it's now a bet. It has shown no sign of a recovery prior to the current crisis. Not something I want to be involved in going forward. I need investments that demonstrate resilience to market downturns. Good luck to those that make money from here. It won't be me!!

If you read my post you'll see I sold on Monday when the price was 60p. But I agree with your sentiment . . . I should have sold years ago!!!!

I hope you have better luck with this than I've had. Finally sold out my remaining holding resulting in an overall 57% loss on Monday. By far my worst performing holding. Nothing else I hold has performed this poorly over a number of years and I can't see any sustainable recovery on the horizon.

Lambcurry13
Yes, dividend payments are included in individual share performance.

Hi farhantahir
Yes, the Woodford situation is not good and has had a knock on effect for some of the individual holdings within the suspended fund.
Having said that here's a comparison below as to the overall return (capital & dividend) over the last 12months of 5 funds I hold and 5 individual, dividend paying, shares I own.
Funds
Fundsmith +15%
Lindsell Train Global / UK equity +16% / +12%
L&G Global Health / Int Index +8% / +7%
Shares
L&G -2%
BP -7%
Taylor Wimpey -3%
Vodafone -9%
SLA -15%
Now you could argue that my stock picking is appalling (you'd probably be right!!!!) however it's clear to me that the funds I invest in have produced a far greater return over the last 12months and seem less volatile when compared to some of my individually held shares.

farhantahir
I'd be very wary of simply chasing dividends. I make this statement from personal experience! I have an overall portfolio (I'm retired and have been investing for many, many years) split between single shares and oeics (funds). The funds, over the long term, have caused me less headaches than the individual company shares.

I'm now in the process of moving from individual shares into managed funds and simply selling units on a quarterly basis to provide income. Fundsmith, Lindsell Train Global / UK equity, Evenlode Income / Global Income, L&G International Index have simply outperformd most of my individual holdings over the long term and seem to be much less volatile. I thought I was safe (for example) in Vodafone!!

Nothing short of a shambles for existing shareholders. I think I read in one of the many press releases that, even after this dividend cut, Vodafone will still be paying a 5% (ish) dividend. For that privilege long term shareholders have seen a 37% erosion to their capital over the last 12months.

I cannot see anyway that this share is a viable hold long term for me. The industry is clearly too capital intensive and too competitive for anyone to make real long term profits. I just wish I'd have seen the light a long time ago. Never mind!!

Tatego, Gino73

Many thanks for explanation.

Regards
Jeff

Hi Gino, thanks for the explanation. If what you are saying is true (and I've no reason to doubt it) we actually gain nothing. It makes no sense to me. SLA are returning excess cash to shareholders but reducing shareholder value by the same amount.

Where's the benefit to shareholders?

Hi Tatego.

I'm viewing consolidation and B share issue as 2 separate events, albeit they're taking place at the same time.

The consolidation of shares in circulation should move the sp up to around £3.12p as this is what's required for SLA market cap to remain at the same level it is today.

The B share issue is a means of SLA returning money to shareholders. I'd have preferred a special dividend myself but I'm sure SLA have good reason for using this process.

That's my take on what's happening. I could be wrong but will be very disappointed if the above doesn't happen.

Regards

Hopefully, this is near the bottom. SP will migrate to approx. £3.12 post consolidation based on today's sp of £2.73.

Holding (number of shares) will reduce by 12.5%.