Aldermore Share Discussion Threads

[celeritas] 12/5/2016 10:05

The first qtr will have been stronger due to the rush to complete deals before new tax rules came in.

[masurenguy] 12/5/2016 09:56

A general reference to Euroclear does not constitute any link that reports the short position that you are claiming on ALD. Post an actual link that directly substantiates your claim. I have seen zero evidence to support it so far.

[liquidkid] 12/5/2016 09:06

Yep and Virgin Money is down to 7.99%

Euroclear:
Our stock loan data service is designed to increase market transparency and combat short selling(!) by providing aggregated lending statistics on a security-by-security basis. Each day we publish aggregate open loan positions for: securities in the FTSE 350 index (try to keep it to yourself - makes the FCA list look mickey mouse)

[masurenguy] 12/5/2016 08:54

Where on earth do you get a short figure of 12.7%. Such a figure would make Aldermore the 4th most shorted stock on the LSE. I cannot find any significant short positions on this stock. Therefore please post a link to the source of your information in order to substantiate your claim.

[liquidkid] 12/5/2016 08:42

With short interest now at all time high of 12.7%
It's going to take a month of Sundays to cover.

[masurenguy] 12/5/2016 07:15

A really great start to the year !

RNS Number : 9937X
Aldermore Group PLC
12 May 2016

Q1 2016: A strong start to the year

Excellent loan origination; up by 43% to £814m (Q1 2015: £568m)

· Business Finance origination up by 18% to £272m (Q1 2015: £230m)

· Mortgage origination up by 60% to £542m (Q1 2015: £338m)

o Buy-to-Let origination very strong at £327m, up by 144% (Q1 2015: £134m)

· Net loans to customers up by £0.4bn or 6% to £6.5bn (31 December 2015: £6.1bn)

· Now supporting c74,000 lending customers (31 December 2015: c71,000)

Lending growth funded by deposits

· Total deposits up by 7% to £6.2bn (31 December 2015: £5.7bn)

· Deposit customer numbers up by 8% to c133,000 (31 December 2015: c124,000)

Strong capital position maintained

· CET1 capital ratio(1) of 11.5% (31 December 2015: 11.8%)

Phillip Monks, CEO, commented: "We have made an excellent start to the year with our best ever quarter of origination as we delivered double digit growth in new lending in both our Business Finance and Mortgages divisions. We took advantage of the anticipated extra demand for buy-to-let mortgages, ahead of the introduction of the additional stamp duty from 1 April 2016, and more than doubled our buy-to-let origination compared with the first quarter of 2015. As a result, we have increased net lending by 6% since the start of the year with deposits continuing to grow to support our lending activity. Market conditions in the first quarter of 2016 remain broadly consistent with those experienced last year, with a relatively benign credit environment and interest rates unchanged. We continue to focus on our strategy of supporting UK SMEs, homeowners, landlords and savers and remain confident of delivering on all of the guidance we set out with our recent 2015 full year results, including generating nominal net loan growth in line with recent run rates and strong returns on equity."

[salpara111] 07/5/2016 11:05

Looks good value but sentiment is heavily against the banking sector.
I guess if they do announce a divi and it is a decent level that will provide support to the share price

[altom] 02/5/2016 08:47

paleje. Thank you. Most interesting. I have small holding ALD (-13.5%) and was thinking of selling but have decided to hold on for next update.

[paleje] 29/4/2016 10:19

I agree short positions put off investors who always believe someone knows something they don't. IC made it one of their shares of the week yesterday, clearly their team aren't put off but then again they probably don't buy shares:)

IC VIEW:
Management expects to pay a maiden dividend during its 2017 financial year. What's more, Aldermore's shares are trading at just 1.2 times its forecast net tangible assets, which looks too low compared with peers such as Shawbrook on 1.8 times, OneSavings Bank on 1.9 times and Virgin Money on 1.3 times. Buy.

[liquidkid] 27/4/2016 14:47

I still find it odd that ever since the IPO there has been an unchanged reported short interest of around 10% of the outstanding.
All stocks have some short interest but this level keeps it in the most shorted category and would influence any investment decision.
Actual Short interest has increased to 11.66% (24mn shares) while Virgin Money VM.L has fallen to 8.31%

The average daily volume has been falling of late too
ALD 2016 is around 570,000
- It would take 40 days and night to cover this amount.

This was the situation in December 2015:
ALDERMORE 10.32% short vs FCA Notified: zero. Thought it might be an error but VM. is up about the same level of 10% - this level is unchanged for the whole of this year.
VM average volume 700,000 steady for year
ALD average volume 1wk 3.5m 1mth 1.5m year 700,000

[gucci] 27/4/2016 10:38

bouncing off support

[steptoes yard] 20/4/2016 10:07

At eight years earnings and the ridiculous threshold set by GO on 8 July last year, I can see corporate activity as the challengers are making profitable but limited inroads into the target addressable market. FY16 at a P/E ratio a tad more friendly than 8 yrs gives me 3 quid

[woodcutter] 20/4/2016 10:02

A decent divi will certainly help and possibly lift the share price Even with slower growth the existing loan book will deliver solid eps returns, assuming there's no significant reduction in loans due to mortgage maturity. There's still a number of people who i know adding to their BTL portfolio's. If i wasn't retired i'd be considering adding to my own.

Market to book ratio at PAG is now below 1. Unless this is a value trap then I'm inclined to believe the whole challenger bank sector is well undervalued.

Woody

[future financier] 20/4/2016 08:21

I agree Woody - when a growth company has a P/E of around 8 either this represents a screaming opportunity or there are major problems that the market has concerns about. There is no doubt that ALD senior management has some of the greed and delusions that we all know and love in the major banks, and it has been severely weakened by certain events (departures, side-linings and promotions) over the last year, but they don't have massive hidden legacy losses or exposures. Furthermore, despite the best efforts of one G Osborne of 11 Downing Street, ALD will continue to grow at a reasonable (but probably reduced) rate.

My gut feeling is that 240 - 250p is about right for now - but this could increase if only the directors would have the sense to announce a date and amount for a maiden dividend.

[woodcutter] 19/4/2016 19:12

be greedy when everyone is fearful, take the contrarian view

woody

[johnv] 07/4/2016 15:09

I gave up on these sometime ago.

[reddave999] 07/4/2016 14:30

Where is the heading now?

[future financier] 31/3/2016 13:55

No idea - although I do know that OSB is (unsurprisingly) having its busiest day ever!

Probably just a good day to top up on ALD.

[melody9999] 31/3/2016 13:30

Can anyone shed any light on why we are 6% down when OSB is 1% up?

[mazarin] 30/3/2016 10:44

BTL 'new' guidelines outlined, for further detail see
:

[aishah] 30/3/2016 09:22

Challenger banks breathe sigh of relief over buy-to-let changes

The Bank of England has today revealed plans to clamp down on the buy-to-let market, setting out strict new rules for banks underwriting buy-to-let mortgage contracts.

"Investec’s Ian Gordon told City A.M. there has been a “sigh of relief at the largely sensible and pragmatic approach” by the Bank to raise the underwriting standards of a minority of banks, noting that publicly-traded specialist lenders Aldermore, OneSavingsBank, Shawbrook and Virgin Money already comply with the new rules."

hxxp://www.cityam.com/237681/bank-of-england-clamps-down-on-buy-to-let-market-with-strict-new-rules-for-mortgage-underwriters

[future financier] 29/3/2016 17:38

ALD should not be too badly affected by this - just annoying that BoE policymaking is based on fundamentally wrong data concerning BTL mortgage default losses (they believe it has double the loss rate of normal residential mortgages when in fact it is closer to half the loss rate).

[steptoes yard] 18/3/2016 15:42

Uptrend since 11th Feb still n place after pullback unlike general mkt. Bit of resistance at 248

[matt] 18/3/2016 13:56

Good to know. I was thinking about doing the same.