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LLOYDS is going to FLY

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#2718

Thanks for taking the time to provide feedback @Eadwig. All sound words and I’ll try and act upon them.

I do have a spreadsheet that works out the fees and stamp duty etc and shows me at what point buying back in is profitable after the fees and how many extra shares I can get amongst other things. As I’ve said previously, I sold VOD recently but all of it (6000+ shares) rather than breaking it up. It did touch 170 a few days later and if I’d acted on your suggestions then I could have sold a portion at 163 then another at 170. Looking to buy back although I was expecting it to have gone up in the last few days as it goes XD today/tomorrow I think.


#2719

Hi swamp_rat,

I see that you have already had two good answers to your question - that those who wish to re-invest enjoy the quicker compound effect, and those who like to take the cash have more frequent income.

There was a time when companies tended to only announce their annual (year-end), and interim (half-yearly) results , but these days most major companies give a meaningful update each quarter, and often (but not always) the dividend announcements coincide with those results/updates.

Several companies pay three equal interim dividends, with a fourth variable dividend.

Also by making four dividend payments, rather than just two, there tends to be less distortion to the share price when the shares go ex-dividend.

I tend to take a mixture of scrips (new shares) and cash in respect of my HSBC dividends.

Lloyds will be moving to quarterly dividends next year, and have already given some indication of what those payments are likely to be, with three equal interim dividends, and a final dividend which will be announced alongside the annual results.

I wonder if any companies will ever announce monthly dividends, because most salaries, pensions, and interest “paid away” from Building Society accounts is done monthly - as is the small amount I receive from my Bank current account each month.

Premium Bond prizes are also distributed each month - not that I receive them that frequently!!!

Regards,

Steve


#2720

Eadwig,

BT planned fibre to the house, When Thatchers government found out they decided it was anti competitive and would give BT a monopoly . So they were prevented from doing that and all this competition set up so that we have such crap internet


#2721

Doubtful, because there is a cost associated with distribution and when you consider what a small fraction of 1 percent each month would be … E.g. a company yielding 6% would only be paying 0.5% per month which would be a miniscule amount for most people’s dividend payout, even allowing for the extra compounding.

Also it would give many holders who wish to re-invest problems with small amounts and fixed costs for re-investing.

Still, it isn’t impossible but would have to be a fairly extraordinary company. As it happens, I used to run a company that had an accounting period of 1 MONTH and effectively all profit was paid out at the end of every month to the directors after a full set of final accounts had been produced. Payments usually ‘lagged’ about 3 weeks after the end of the calendar month.

There is no law that says an accounting period has to be 12 months, it is entirely up to each company to decide the accounting period.

The tendency towards quarterly updates from companies comes from USA regulations, by the way (I assume it is a regulation, every listed company reports quarterly over there). I think its a very welcome change. All the larger companies with ADRs are, I assume, obliged to follow the US regulations and almost all companies I know of, even AIM companies, put out a trading update quarterly now. Much better info. and guidance for us shareholders.


#2722

… yet they do it now, and so do competitors when they choose to, so it could have easily been achieved back then with the artificial competition rules we have had for many years now. Indeed, every new house sold by Persimmon has fibre to the home as an absolute necessity.

Thatcher probably didn’t understand it, she seemed very backward on most tech for a scientist and completely destroyed or severely retarded many sectors and sub-sectors in which Britain would otherwise probably have still been competing if she hadn’t pulled government R&D grants. To this day our R&D spending remains behind the likes of Bosnia and Mozambique, although more is at last promised.

Her limited views of the future and her rabid free-market ideology, had very near fatal consequences for the country and our way of life … I.e. to steer the UK to have so much reliance on the finance sector and to remove support from most manufacturing and the UK computer industry (yes, we used to have one) as examples.

ARM holdings came directly out of the government supported BBC computers and has at least one chip in every smartphone in the world. They were very lucky to have been close enough to their RISC break-through when Thatcher’s axe fell on the UK industry.

A few more years and we might have had the equivalent to Android developed in this country rather than having no hand whatsoever now in operating systems on smartphones despite everyone of them relying on ARM chips.

To this day, you can search these boards and someone somewhere will be trotting out the Thatcherite era-saying that government is very bad at picking winners in the market. A saying that completely misses the point and is actually all about cutting government spending at all costs.

If Brexit does happen and we are out on our own that kind of thinking will kill many more advanced tech sectors in the UK that are supposedly going to save us.


#2723

Hi @Eadwig/@StevesShares, There is an investment trust SMIF that pays monthly dividends. I have held it in the past but not any more. Good yield close to 7%, it’s a debt investment - invests in bonds and the like. Liquidity is problematic. I wouldn’t recommend it…anyone interested should DYOR !. Doubt that will be either of you guys…

ATB

Pref

PS I see your portfolio had another rollercoaster day yesterday Eadwig with some huge up and down moves. Looks like it was likely positive though so congratulations. Mine was steady but down, as you would expect I guess.


#2724

I trust you caught the massive rise in PRSM? I’m not sure which of my investments you are aware of.

Very profitable day for me yesterday. AFC was down again, but I’m still well into 3 figure profits (+350%) at current price and very confident it will rise again either before or just after the demonstration of its new hydrogen fuel-cell E.V. charging product. on 6th December (and, I suspect, announcement of first sales/orders).

Hope your stuff is doing well, everything seems fairly flat in main markets at moment, despite political announcements.


#2725

Hi @Eadwig, Yes Prism going up while AFC going down I see today. Not been a great week for me, down about 0.5% on the week ATM. Main problem has been Aviva dropping about 10% due to a new CEO / reorganisation. It happens.

Completed my move from UKW into NESF yesterday as planned. Sold out of IAPD due to expectations of a biggish down move in the AUD vs the GBP, hoping to move into GBDV and VMID or maybe VHYL if I can get the right prices.

ATB

Pref


#2726

Yes

Already happened.

Plenty of them.

ATB

soi


#2727

@PrefInvestor1.

Yes, I’ve taken 60% profit in 5 months on a tranche sale this morning in PRSM, retaining 2 tranches to see how things play out. It is still a long way off its highs and was only ever slammed due to a take-over, so far as I could see, and that take-over looks to be integrating well and adding to revenues as planned. So it should go back to @2000p all else being equal, but the market values growth differently from time to time so I’m happy to realise 60% on 1/3rd of the holding.

Its amazing to me AFC is falling given what is coming. The only thing that happened since it hit @28p was they raised £0.5m with a placing @20p in order to help fund dealing with new customers

I thought it was sharp management given that they couldn’t have hoped to get that sort of price per share just a week earlier … and if indeed they have had more interest than expected causing them to exceed their budget amount raised previously for taking products to market in December and delivering customer’s expectations … well … markets are strange things, let’s say.

I’m certainly tempted to add in a different account prior to the product release day on Dec 6th. I was intending to previously when it hit @10p, thinking it would drop back to @6p or @7p (its spikes have always been sharp, after all, but then there hasn’t actually been any customers before, just prospects of getting closer to market) but positive RNSs just kept coming. Not even that positive, some of them (Chairman buying £14k of shares is hardly earth shattering) but it just kept surging.

Not that I’d be expecting to multibag from current levels, which are approx @16.5p, but every tranche I can turnover at 15% profit (I.e. selling @19p, well below the placement price) is another tranche that has succeeded in its aim (no pun intended) for the year.

We’ll see. Very relaxed with AFC now. If it goes to zero tomorrow I’ve made plenty on this particular investment so I’m free-rolling, as they say, from this point on (unless I add more, of course.).

Far more concerned with waiting for IQE price to start recovering. It did previously, but this is a slow part of the year for the industry so I’ll have to be patient. I’m in much deeper than I ever wanted to be after a badly judged entry point a year or more ago now. Only ever got involved for a trade, so I’ve made some very bad judgement calls on that one,

Larger company investments are doing well today. Was rather hoping to land another tranche of HSBC @565p but it didn’t quite get there. RDSB never seems to fall far enough for me to add further either.
The week isn’t over yet though!


#2728

Really? I’ve never come across a listed company that does that that I can remember.

That could be because I’m not often looking for dividends, of course …


#2729

Hi Again @Eadwig, I had a bit of a read around on AFC Energy last night for interests sake. Reading the chat sites a couple of posters seemed to think that there might be as big cash call coming ?. Commercial level deployment of their EV chargers is clearly going to need a lot of money and people that a small R&D company isnt going to have - so that kind of sounds logical to me. Though maybe you think some big company will just come along and buy them up at a big premium when they have a saleable product ?.

I really dont know - my research is just reading a few posts on various chat sites plus a few other articles. Likely completely off beam. I’m sure that you have far better handle on whats going on.

ATB

Pref


#2730

Good point. I was writing a long reply then binned it realising this is a LLOY waffle zone and there is a thread dedicated to AFC already.


#2731

Yes Marktime, no point adding your own waffle then?

Frog


#2732

That is true, but they have partners, very large ones, who are taking on various things including setting up manufacturing for the anodes and cathodes which are the parts that will need to be replaced regularly, as I understand it.

So, a cash call is certainly possible, it will depend on the business model and cash flows and who is contracting to supply what under what terms - and contracts/sales achieved.

There was £2m almost raised earlier in the year to get these products to market, and that was entirely predictable. Last time a major cash call happened investors were allowed in at the same price as the institutions and that provided a very nice profit for those who chose to take it - despite the offer price being a whopping 60% below market price!

Whether or not there will be one and when is all going to depend on the above variables. I also think there is a very good chance of the company being bought out to take control of AFC’s I.P. which was miles ahead of the competition. I’m not sure how far ahead it is now, and it probably depends on which product and application of said product you are talking about.

They look like they’re well ahead of the competition in using Ammonia as a fuel source which doesn’t have to be held under pressure and has a lot more energy per unit of volume than hydrogen gas.

The possibilities for hydrogen fuel-cells are suddenly being taken very seriously from ‘local grids’, tanker, ferry and container ship power, storage of power from intermittent sources such as solar and wind, straight use of waste hydrogen to fuel the national grid (AFC are miles ahead there, they can use much dirtier hydrogen than any other commercial fuel cell) and the list goes on and on, backup power where diesel generators are currently used, including ‘stand alone’ products like cell phone towers that are well off the conventional grid.

One new membrane product AFc developed simply to solve one of their own development problems has given them a whole new product line, apparently more efficient than anything on the market at present, in a market supposedly already worth $1bn p.a.

… and those are just the ones I can immediately think of without going into cars or trains or buses etc which I don’t think AFC are likely to target those markets (trains, possibly, but I don’t see it myself).

First products hit the ‘shelves’ in December, another, larger power plant June 2020 and the big generation plant which is stating to get to multi-mW levels sometime after (date on web site, but in 2021 I think).

Remember AFC already have 10 years of cutting edge development in. Any cash required is likely to be going to fund orders from here on in, which is an entirely different proposition to a cash call for hopeful development purposes and will necessarily be costed out with sales projections etc. By that point it will all be getting a bit boring, I suspect.


#2733

Slowly rising IMHO

Warming / Gearing up to my blast back into the 70s next month

Watch this space fellow Black beauty Investors

Lloyds Banking Group PLC

LON: LLOY

59.79 GBX +1.09 (1.86%)


#2734

Correct Eadwig, unfortunately softbank purchased ARM a while ago promising to keep the technology in they UK. They recently sold off the non-core assets whatever they were


#2735

This thread seems to have disappeared. Can anyone explain why?


#2736

You have just posted on it .
It has not disappeared.

soi


#2737

The thread is still here but I too thought this one was meant to be a pure LLOY thread which is what I think @Pennyfarthing may be referring to. A thread that discusses issues very company specific. Even Brexit stuff (of which there tends to be so much but obviously does affect LLOY) I was hoping would be elsewhere.

This thread does seem to have lost that really tight LLOY company specific focus it used to have.

Is it time to start a new thread or is there another one already out there on which I can piggyback? A thread that is pure LLOY (pure LLOY! that’s scary thought!). Obviously there will be the odd bit of slippage, the odd bit of general banter which is inevitable and fine but really Lloyds focused one… this one doesn’t seem to fit the bill any longer.

Regards,
ITDYA