Royal London Uk Equity Trust Share Discussion Threads

[rfaustin] 16/9/2008 03:06

I received cash toaday, 14.51p per RLU share. Is this correct?

[robizm] 16/5/2008 19:09

They have a lot of cash and are quite defensive. the nav is 25p already

[linhur] 16/5/2008 10:03

Erstwhile

Quite a turn up for the book on this one with liquidation now proposed.



Pleased to see that the annuity holders are happy to accept 95.3p.On current NAV I would expect to see 22/23p in September but of course the market might look completely different in three months time.

regards
Linhur

[robizm] 30/4/2008 19:33

Sorry I meant good value under the old basis when Annuity shareholders where going for a cost of 8p per ord share.

[robizm] 28/4/2008 11:31

Why has the company changed it stance on paying off the annuity shareholders? even though excellent value,how much will be left for the ordinairy holders

[linhur] 24/4/2007 19:17

Bantam

Don't look at history, look to the future.RLU is heavily geared and tends to move with the index.As the index has been moving up recently the gearing means the RLU NAV has been increasing more rapidly.

You now have to look which way the index might go.If down the NAV may retrace downwards.There is always a few pence discount in RLU to allow for the antics of the Annuity holders eg RLAM.

kind regards
Linhur

[bantam175] 11/4/2007 12:40

Looking at history this is due for either a sharp rise or fall. Hope it's the former.

[bantam175] 02/4/2007 16:33

Still not showing this mornings transactions? I bought over 30,000+ in 2 trades and they are not to be seen!

[praipus] 02/4/2007 13:55

There are only 30,000,000 annuity shares in issue roughly = to two ordinaries in NAV terms perhaps they should be enfranchised. To everyones benefit.

[bantam175] 02/4/2007 11:10

Bloody advfn. Several trades of mine not showing on the board. Wonder how many more there are?

[bantam175] 02/4/2007 10:01

These are a bargain on results imo.

Snapped up a few before the boom.

[praipus] 08/2/2007 14:31

This is eartwhile2's post from the JDT thread - a lesson in humility

"If it doesnt wind up then we will have Annuities and Ords left, no debt and no zcbs, and £74m less assets (about £50m or so left). Before any revenue accrues to the Ords the fees will need to be paid, then the 8.5p div to the Annuities. This is about £2.8m before any revenue accrues. Put the whole portfolio on, say, a 4% yield that gives you £2m annual revenue, so the annuity shareholders will have an 0.8m shortfall each year to make up in 2021 (pushing the capital entitlement of the Ords back)

From my calculations this leaves virtually nothing for the Ords, perhaps a 0.1p pa dividend for after 10 years of portfolio dividend growth. After fees etc + the anuity make whole the capital entitlement of the Ords in 2021 would be so far out of the money it will have almost nil value - you'd be better owning the residual delta directly rather than the optionality in RLU.

Essentially, ALL of the portfolio value in 2008 will accrues over time to the annuity guys as a result of their preferential claim over income, if the trust stays in existence. thats (1) why the annuity shareholder would love it to remain in existence and (2) why they will extract such a high price for an exit in 2008 and (3) why Hallwood have probably now sold as he is a smart chap.

It is so far from a screaming buy (as in Praipus other thread) as to be laughable."

[praipus] 08/2/2007 14:00

Sorry didnt do the repeat thing on purpose...computer issues