strapuk
02 Feb 2017
Re: poor dividend yield for the risk See Questor has just tipped! Best sell then!
strapuk
02 Feb 2017
Re: poor dividend yield for the risk That's exactly what I though - especially as Interactive Investor are deducting 20% tax from any dividend within my ISA holding!!!! They are now saying that the dividend payable in November was a gross 8.8p per share, and not the 11p per share published. Never mind P2P shafting us, when II start doing it it's time to move on.P2P have now spent an average of 22p per non-Treasury share in buybacks in the last 6 months to try to narrow the discount - to no avail by all accounts. As you say, something is very wrong hereabouts!
budu
02 Feb 2017
Re: poor dividend yield for the risk At 5.69% yield, discount 22.30, surely worth a small punt (like the one I just made)?
triceratops
27 Jan 2017
poor dividend yield for the risk The latest quarterly dividend of 11p is only half covered by earnings...even if we assume they can keep the 11p up that only gives a 5.5% yield on the current share price.I can stick some cash into funding circle and generate 7.1% quite easily. I'm not adding anything here something doesn't smell right!Tops
strapuk
26 Jan 2017
Re: Buy-backs With the latest share buybacks, the Treasury shares now represent 2.54% of issued share capital. They cost the company £17.781M at an average cost of 811.25p per share. At today's 807p bid price, they are "worth" £17.688M, - which represents 21.14p per non-Treasury share that could presumably have been issued as a dividend?The buying process started on 27/06/16 at a buy price of 804.3p per share, and we have seen the share price fluctuate as high as 849.7p and as low as 730p up to today.Has it been a success? I'm not qualified to say, but 2.54% of issued share capital is hardly likely to make much of a difference to the market, is it? As they are entitled to purchase up to 15% of the issued share capital, I expect this slow accumulation to continue for the foreseeable future.
triceratops
13 Jan 2017
Re: Buy-backs Not sure if its the buybacks or the fact these have simply become better value (probably a bit of both) but they seem to have steadied things at 800p ish. I won't buy more until I'm comfortable on the distribution yield but things do seem to have at least stabilised on the share price front.
strapuk
01 Dec 2016
Buy-backs With the 7,136 shares they bought back yesterday, they have spent a total of £11,913,785 buying back 1.73% of the shares in issue. They have paid an average of £7.9819 per share.Does anyone have any thoughts at what % of the total being held in Treasury will start to have an impact (+ve !) on the discount, and what does the market generally feel about a significant number of share being held in Treasury that are not cancelled.Apologies in advance if this is "Investing 101" and I am asking a particularly dumb question.
ovidian
30 Nov 2016
Re: What's the story...? Ah GLI Finance. They bought Platform Black which is a peer to peer invoice discounting platform that I had truly horrible experiences with. so far I'd recommend Ranger direct Lending, good dividend and modest SP uplift.
LifeInPlastic
29 Nov 2016
Re: What's the story...? It would be useful to have more information about what is in Eaglewood SPV,We can see the provisions on loans made by P2P rose from 2% at 31-12-15 to 3.6% at 30-6-16 but are left to guess about the SPV.
Sherbrooke
29 Nov 2016
Re: What's the story...? Woodford Equity Income held 0.87% of its assets in this trust at the end of October. It may be instructive to see if that position has changed during November. I am as perplexed as the other contributors as to why there should be a problem but having been singed by GLI Finance I am very wary.
triceratops
29 Nov 2016
Re: What's the story...? The 2-4% delinquency rate they quote will be built into the model used to calculate the NAV. Which presumably is based on a discounted cash flow of the interest payments plus capital outstanding on the loans.The problem is, and the FT had a good article on this today, the lending platforms are starting to see higher defaults than their models predicted. The FT suggests that the platforms have sacrificed good credit control in return for building up NAV's to generate their monitoring fees.As this fund is very US consumer focussed it makes sense that these are trading below NAV as the implication is that their assumed default rates are too low. However the 25% discount assumes a huge rate of defaults especially as 20% of NAV was in cash at the beginning of the quarter.Other similar funds don't have such a large discount so...either there is an arbitrage here or some hidden piece of bad news is about to drop. (by hidden I mean hidden from the likes of us!)Tops
LifeInPlastic
29 Nov 2016
Re: What's the story...? I would expect the market to be factoring in tough times for all. P2P were at pains to point out they had limited exposure to the problem parts of that US site though. I'll have to have a root through their accounts and see if I can figure out how much of a reserve is already made in the NAV notices
ovidian
29 Nov 2016
Re: What's the story...? But bad debts for the industry as a whole or for P2P? Like I say I bought Ranger Direct Lending at the same time and that seems fine.
ovidian
29 Nov 2016
Re: What's the story...? I'd assume they can't include known defaults as an asset but who knows what accounting rules apply. Someone mentioned that the share buy backs are ineffective as they don't delete the shares from circulation but just keep them in their treasury account. I've had previous experience of buy backs and the gap between SP and NAV closed pretty quickly. The daily volume is extremely low especially if you exclude the buy backs. The monthly newsletter is useless for providing information about what is going on.
LifeInPlastic
29 Nov 2016
Re: What's the story...? Is the NAV expressed pre-provisions for bad debts?I assume the markets are pricing in very tough days ahead
