Honeycomb Investment Share Discussion Threads

[rambutan2] 31/10/2022 22:43

Thread for the new merged entity ie POLN

[ggoil] 24/10/2022 20:03

With the change from an investment company to a commercial asset manager, do the annual fees also go?

[rambutan2] 10/10/2022 21:46

New ticker:

[charlotte2020] 04/10/2022 22:24

Quilter holding 15% of shares announced today

[my retirement fund] 30/9/2022 12:13

10% yield - but how sustainable, will the merger effect the yield and increase the risk?

[rambutan2] 10/5/2022 14:43

Noted:

10 May 2022

Honeycomb Investment Trust plc ("Honeycomb")

Publication of Circular and Notice of General Meeting

Honeycomb is pleased to confirm that the Financial Conduct Authority (the "FCA") has today approved Honeycomb's shareholder circular (the "Circular") in relation to the proposed combination of Honeycomb with Pollen Street Capital Holdings Limited, as announced by Honeycomb on 15 February 2022 (the "Combination"). The Circular will be sent or made available to Honeycomb's shareholders shortly. The Circular contains further information on the Combination and a notice convening a general meeting of Honeycomb's shareholders at Slaughter and May, One Bunhill Row, London EC1Y 8YY on 1 June 2022 at 10.00 a.m. (the "General Meeting") to consider and approve the Combination and related matters.

[rambutan2] 26/4/2022 21:26

Last of the 20p divs declared. Next quarter 14p is the expectation assuming the Pollen merger does go through.

[cc2014] 25/3/2022 15:41

41.3k share buyback yesterday at 895p.

I'm suprised they could get that volume at that price.

I'm also surprised that given the buyback, the general strength of the markets and confirmation there is no Russian exposure the share price hasn't returned to something closer to where it started. i.e. around 950p.

I guess it will get there slowly with the buyback

[redhill9] 18/3/2022 09:46

If the restructure goes through as looks likely, they've said the dividend will reduce.

[boystown] 17/3/2022 20:49

So an 8.9% yield at the current price!? Can any of you experts tell me how safe this is likely to be? TIA

[spectoacc] 11/3/2022 16:19

Been quite a few like that - can understand if they're HQ'd in Russia, or saying it from Russia, due to the new law against telling the truth. But far too many weaselly words in what is surely the clearest good/evil, right/wrong war since WW2. BATs just the latest example.

[redhill9] 11/3/2022 16:16

Agreed, but why couldn't they refer to it as a war in Ukraine rather than "extremely unfortunate events".

[cc2014] 11/3/2022 15:33

The Board of the Company notes the extremely unfortunate events in Ukraine and continues to monitor the resulting market implications for the Company. The Board can report that the Company's portfolio does not have any direct exposure to Russia


So, whilst this was obvious maybe we can go back to something starting with a 9 rather than a 8?

[cc2014] 02/3/2022 12:16

HONY RNS saying considering buybacks if discout does not narrow.

Pleased to see it seems to have stopped the rot.

I picked up a few earlier this morning, although I will be looking to trade those out rather than keep long term.

[medieval blacksmith] 22/2/2022 10:33

It really makes little difference to us PIs. If it is an 8% dividend yield you shouldn't be relying on all of that for income because you should be re-investing a small percentage on a zero growth investment to cover inflation risk. The new investment hopefully gives 6% yield and inflation risk protection through growth.

[redhill9] 22/2/2022 10:14

rambutan2, your post #58 about the potential for the new company to have capital growth when the existing HONY doesn't misses the point that existing HONY shareholders bought for income. I hold HONY in my income portfolio and it's income I want, not growth.

Maybe the new company can provide annual returns of combined dividend and growth greater than HONY does now but that isn't what I bought the shares for. I'm happy to wait for now and see what happens but if I didn't already hold HONY shares I wouldn't be buying them for my income portfolio, which is where they are currently sitting.

[rambutan2] 21/2/2022 12:43

CC2014, that's different really, just a tax move but with the business pretty much staying the same.

[rambutan2] 21/2/2022 12:38

Whatever, it's moving from being a simple high yield vehicle - ignoring what's going on under the bonnet with the loans themselves - to something a bit more complex. Something that is bound to cause folks to hit the sell button.

[cc2014] 21/2/2022 12:32

Apparently there are some which have switched. Property REITs.

[rambutan2] 21/2/2022 12:32

Actually, perhaps many year's ago there were one or two Lloyds insurance investment trusts which did. But I could be wrong.

[rambutan2] 21/2/2022 12:27

SpectoAcc, no I can't.

[rambutan2] 21/2/2022 12:24

redhill9, HONY in its current form offers the high div - which itself is not invulnerable - but zero capital growth. Attaching Pollen St to the entity offers the potential for real growth, including income growth. The money Pollen St runs is mainly in long life closed end pools, with good management fees and performance fees on top. A potentially very lucrative business. Of course, the question is, are Pollen St capable of pulling in the money. I assume the large shareholders, who know Pollen St well, think that they are. If so, a few years down the line, HONY would be a much bigger company and on a much better rating. Something more akin to Intermediate Capital (ICP) a few year's ago. Aimho

[spectoacc] 21/2/2022 12:13

Can anyone recall another IT switching to being a Ltd co? Curious whether some of the fall is on funds with an IT mandate needing to sell. I personally can't think of another.

[cc2014] 21/2/2022 12:12

If you want the upside argument Pollen have a very good track record over a number of years and imho the dividend was at risk anyway as generating a 8% return with interest rates close to zero required a certain level of risk.

I can see why some shareholders are selling out as the new entity has a different mandate than they bought in for, plus as far as I can work out Pollen want to retain some of the returns in the fund rather than pay it all out as dividends. I'm not bothered whether I get 8% dividend or instead 5% dividend and 3% capital growth but I know many income seekers are.

It would be my guess that the big shareholders who have voted for this at a share price of 950p surely see value at 850p and the share price will drift back up as they buy a few more.

How much of the gap will get filled I'm not sure, but a bounce back to 900p+ does not seem unreasonable. I expect some holders will be happy to let their shares go as the share price recovers.

[redhill9] 21/2/2022 11:58

Looking at the dividend situation a bit more closely, it looks as though for 2022 the dividend will reduce from 80p to 60p (on the basis of 100% of existing shares being eligible plus 50% of the new shares) which is a yield on current share price of just 7%, with the dividend increasing to 64p in 2023 on the same share eligibility basis, then reducing to 51p in 2024 when all the new shares are eligible. On the face of it not attractive for HONY shareholders, so why would anyone vote in favour?

The large HONY shareholders who have pre-approved this deal clearly know more detail about the prospects for the proposed new company than we do. If the merger was some form of "stitch-up" designed to transfer value from HONY shareholders to Pollen I'm struggling to understand how the likes of M&G would go along with it, as they appear to have done. It's puzzling but I'm inclined to sit on my HONY shares for now and see what happens.