Blackrock Com Share Discussion Threads

[spectoacc] 03/11/2016 19:51

Big fan of CYN - will be interesting when the CULS get repaid (CYNC).

BRWM been a big yielder whilst I've been in it - though the next Final may not hold.

Main difference I always saw was that BRCI made greater use of option-writing, and that boosted its yield. The recent divi cut might put a hole in that analysis. Also tends to hold more smaller co's and more oil stocks; BRWM heavily overweight BLT & RIO and a bit more pure-play miners.

But the two have enough holdings in the same things to make me quicker to sell BRCI than BRWM.

[scottishfield] 03/11/2016 18:21

I have both too carterit, and CYN too, which I like.

[carterit] 03/11/2016 17:27

I believe BRCI has always traded close to,at or slightly above NAV for many years,as it is primarily an income fund. BRWM certainly historically has been more of a growth fund (only paying a dividend of approx 1% as recently as 3 or 4 years ago,and only started putting more emphasis on dividends in the last 3 years or so. Being more of a growth fund in a very cyclical sector,usually means trading at a double digit discount,like now.I'm a holder in both. Buying BRCI at < 70 ,and selling in tranches at > 1.00,while a buyer in BRWM at < 2.00 and selling in tranches at > 5.00,and in the meantime,just extra shares with dividend reinvestment. I've bought BRCI in 2003,2009,and 2016 selling in in 2007-2008,2010-2012. Have bought BRWM in 2003,2009 and 2016. Selling in 2006-2008,2009-2012. Other investment trusts i hold in other sectors,i hold throughout the upswings and downswings,as i'm invested in several different sectors and areas which help balance things out a bit

[spectoacc] 03/11/2016 17:02

@badtime - thanks, but perhaps only if I buy back in! Was trading 2p over NAV at that point.

On a related note - always surprised BRWM & BRCI trade at such different discounts.

[badtime] 03/11/2016 16:58

Yur sell at 84 is looking well timed

[spectoacc] 03/11/2016 16:32

Negative reaction to £ small rise - though been trading over NAV recently.

[garycook] 27/10/2016 10:19

Not looked,but guess not many,but put it post on all my 25 shares I own.

[spectoacc] 27/10/2016 08:19

@Garycook - long = betting it'll rise. Short = betting it'll fall.

Just out of interest - have you had a look at what % of BRCI is out on loan?

[garycook] 27/10/2016 08:07

To all BRCI shareholders. I have today put a Limit sell order on my holding in BRCI of 150,to stop Shorter,s from loaning the shares from my broker,which they can do for a fee,without me or you knowing about.I suggest you do the same.

[garycook] 26/10/2016 04:32

Totally agree.

[topazfrenzy] 25/10/2016 15:50

Commodities are the place to be, especially if inflation accelerates. BRCI is as good as any to be in, well weighted, and with the miners possibly increasing their dividends from next year. Not many places to hide within an inflationary context, they also have gold miners which is an insurance policy so to speak.

[garycook] 25/10/2016 14:38

SpectoAcc,I believe you will be moaning.BRCI will achieve a £1 again IMHO

[spectoacc] 25/10/2016 14:00

Sold at 84p. Been a great ride, & hope to buy back in some day.

Why out now?
1. Can't go bust taking a profit
2. Divi cut (though still very good)
3. Fear of £ mean-reversion (Sterling could as easily lose 10% more as bounce 10% of course)
4. Trading above NAV (BRCI rarely trades at much of a discount, but even with today's rises in miners, it's above NAV)
5. Already own BRWM, which trades at a discount
6. BRCI's holdings - they share many with BRWM (BLT, RIO, FQM, GLEN..) but BRCI adds the oil majors. Including Exxon, oils are the biggest holding (c.22%). I've no idea where the oil price is going but eg Shell is paying out way more in divis than it earns in income (funded via asset sales & reserves). My point is - oil needs to go up just for Shell's divi to be justified, and a few more years down here or lower could induce an historic cut.

Good luck holders - intend to stay off this thread to avoid any temptation to deramp ;) (Unless it rapidly rises to a quid, when I'll be on here to moan).

[spectoacc] 21/10/2016 13:16

Lol thanks - so I'm wrong again! 4p pa it is.

[speedsgh] 21/10/2016 13:14

SpectoAcc - Note that they will have paid 5.0p in the current FY but based on 1.0p quarterly payments going forward (which 'may grow as market conditions allow'), the forecast full yr div for the year ending Nov 2017 is 4.0p giving yield of c5% at the current price.

[spectoacc] 21/10/2016 13:08

Thanks for that - not as big a cut as I'd thought.

[speedsgh] 21/10/2016 13:05

from Dividend Declaration rns in March...



Since the publication of our Annual Report the sector has experienced further challenges as falling commodity prices have forced many companies to reduce or cancel their dividend payments, most notably ConocoPhillips and BHP Billiton cutting their dividends by 66% and 75%, respectively. In light of this the Board has revised its 2016 dividend target. It now intends to target a second quarterly interim dividend of 1.5 pence, followed by third and fourth quarterly interim dividend payments of 1 pence, making a total of 5 pence per ordinary share for the year as a whole. The Board intends to use revenue reserves to support this target if portfolio income alone is insufficient. Thereafter, the Board's intention is to maintain the quarterly dividend and grow this as market conditions allow.

[spectoacc] 21/10/2016 08:57

Thanks @Garycook, I didn't read back far enough. Divi before this was 1.5p, & Factsheet still claims an 8% yield. Perfectly sensible though - 5% pa has a more sustainable feel to it than 8%, would rather they paid out of income than capital (though I know they're hot on option-writing too). Interestingly, with many of the oilers paying in $, the 20% drop in the £ has effectively raised their divis 20% (though Shell needs the oil price to recover or there'll be a "shock of the century" divi cut).

[garycook] 21/10/2016 08:35

It was declared by BRCI around 6 months ago maybe longer,that the Quarterly dividends were being reduced to 1.0p,because of the reduction,s in dividend of BLT,RIO,and some other oiler,s,in the portfolio.

[spectoacc] 21/10/2016 08:27

How come only 1p/share divi last time? They've always paid around 1.5p each qtr, even if in past it was 3 qtrs. a bit below, final qtr above.

Seen nothing to suggest they're not still planning to pay out c.6p p.a. for c.8% yield, but also found no explanation why latest qtr "only" 1p.

[badtime] 20/10/2016 13:50

Looking good

[spectoacc] 14/10/2016 15:16

Interesting that whilst 20% of holdings are in the UK, they're seemingly all beneficiaries of weak Sterling - RDSB (largest holding at 6%), RIO, BLT, BP.

[aleman] 11/10/2016 12:56

NAV up to 80.81p yesterday. £ down again today. $1.225.

[aleman] 10/10/2016 16:11

Oil still going up. $53.54. £ still going down. $1.235.