||ORD SHS #1
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British & American Share Discussion Threads
Showing 51 to 74 of 75 messages
|Enormous spread on this...80 to sell 100 to buy. Someone just sold 58,000 at 76p - crazy!|
|The answer is yes. A roughly £2m distribution from capital. This policy will be seriously derailed by Geron not coming up trumps or a bear market. It is not sustainable. Why it's worth a 20% premium is anyone's guess!|
|Yes, be interesting to see if they continue with the dubious dividend policy next week.|
|Yes, Geron tumbled by 60% yesterday which again begs the question of why the board of a listed investment trust chose to gamble such a large slug of shareholders' funds on this one stock ?
Why, out of all the possible investments available to it across the world, has this one investment trust gambled on this one stock ?
And why no RNS yet from the investment trust to admit to its latest disaster ?|
|Looks like the share price has fallen reflecting Geron Corps halving of their share price. I wonder whether they were stupid enough to put more money into Geron at $4 before it crashed to below $2?|
|And only one jobber left in the stock..... ! Says it all, does it not TopVest ?|
|I'm amazed this went so high recently. It's betting the house on a loss making pharma business.
They may be lucky and it all comes good, but I think this is a bit of a house of cards until they get their investment strategy sorted out.
They should 1. Sell the speculative pharma business whenever they get a decent opportunity and 2. Stop destroying value through buying shares just before they go ex-dividend which is a totally stupid investment strategy and 3. Re-base the dividend as any fool can see that the dividend record is all a bit of a sham and just a return of capital.|
|What is going on here?|
|Well this one has bounced back. Seems I sold at the wrong point!|
|Yes, but it's just a return of capital not a real yield. It's uncovered / covered by making capital losses on buying shares immediately before they go xd. The yield is irrelevant, when you are losing capital. A yield here in excess of anything more than 5% is totally unsustainable.|
|Goes ex dividend this week with a yield of 9.44% I believe.|
|Thanks for your view Topvest.|
|Oh yes. They are undervalued I think, but not worth much now. Film revenues were £179k last year, and about the same in the prior year..but generally reducing from £200k a few years back so definitely ex-growth. Probably worth £1-2m tops, I suspect, which I don't think is in the balance sheet. The African Queen, Moulin Rouge and Oliver! still sell but I think they probably don't get anything on Oliver as Columbia Pictures own the rights and they were just the studio. So, probably just a declining revenue stream from some ageing films. The African Queen and Moulin Rouge are pretty good classical films though.|
|See my unanswered post 13 June 2010.|
|Quite an interesting write-up on Romulus Films and it's history. I guess this was the money behind the business originally.
|Yes, I agree - Geron is very speculative and I think the CEO has got too emotionally attached to this very poor investment. Nevertheless, that is only one of the two big issues. The other is the fact that most of the income is derived from buying blue chip shares before they go xd and then selling them afterwards at a capital loss. This policy makes no sense at all. It will end in pain. I'm amazed that the price has held up so well. I will keep watching, out of interest, but I cannot see any logic in this being on a premium to net asset value.|
|If you're thinking of investing there is one thing you need to be aware of - the huge spread; and one thing to check out - the large stake in Geron Corp. (www.geron.com). It's almost as important to do your research on Geron as its is on BAF. Geron has not been a happy investment. fwiw I sold out 6 months ago having held for many years.|
|I sold out too this year.
My reasoning was, as TopVest points out, the high (but uncovered) dividend was sucking-in income investors.
I viewed that BAF was merely taking advantage of new rules which allows investment trusts (as approved by the Inland Revenue) to pay dividends with tax credits out of capital.
A bizarre decision, in my view, as it gives a false impression of true income receipts.
As to BAF's love affair with the sniffy Geron fiasco: why, out of all the stocks in the world, did they choose that one -not only to invest in, but to make it their largest investment ?|
|Are there any other holders here.
I guess holding this Trust is albout the massive Dividend.
Paying a premium for that benefit.
Somehow though it seems to work out for them?
Thinking of putting a toe in the water here. Any feedback/comments please?|
|Well I've sold out of here as I think, on further analysis, that the share price is overvalued by 10-20% and I think it can only be desperate income seekers keeping the price up. My main issues with this company are:
- Paying unsustainable dividends out of capital with minimal disclosure of the fact that they buy circa. £1.5m of shares before a dividend and sell for a capital loss once the dividend is paid. A crazy policy, but has maintained 16 years of dividend increases at the expense of depleting capital.
- A bit of an obsession with Geron and BioTime which is highly speculative and not really consistent with what the company does otherwise. Can't see any return on this investment for years, unless Geron and BioTime get caught up in a speculative bubble. Geron is at a pretty much all time low and so US holders aren't too excited by the deal on the table!
- Staff costs are £403k which is pushing the Ongoing Charges up to 2.5% - what exactly are the employees doing as film revenues are very small?
- Hugely diminished investment trust portfolio - basically the portfolio will struggle to be sustainable soon as it is being depleted by the crazy dividend policy.
Overall, I think you are unlikely to get 80p back so I have sold out and think myself very fortunate to have made a capital profit of nearly 10% and collected almost 10% yield each year over 3 years. Not bad for a poor investment!|
|Not that I am aware - was announced by Geron and BioTime in January though. Romulus Films is a pretty significant company in itself - about twice the size of BAF so Jonathan Woolf certainly has some firepower. I'm not sure how much of the investment will go through the investment trust. Accounts of BAF arrived today, so will have a read through.|
|Has BAF ever confessed previsouly to the relationship between Romulus (major shareholder in BAF) and Geron ?|
|Results out - more of the same really..except for this which is interesting, although shows they are willing to invest even more into stem cell science. To be fair to the MD he seems pivotal in arranging this deal so he has either done very well to re-establish value OR he is just doubling up on an already disastrous investment.
We remain deeply unsatisfied with the management and performance of our major investment, Geron Corporation, although the substantial declines in value which were experienced in the previous year were not repeated in 2013. As already communicated to shareholders, however, we are very pleased by the actions taken by our own major shareholder, Romulus Films Ltd, which has been instrumental in arranging and funding the purchase of Geron's stem cell business by the US listed biotechnology company BioTime Inc in such a way as to benefit Geron shareholders such as ourselves. Once the transaction becomes effective later this year, Geron shareholders will receive directly shares in a new listed and well funded company which will reactivate and develop these important and valuable assets. We will thus maintain our exposure to this ground breaking regenerative medicine business and it is hoped that, particularly with the substantial interest and revived valuations now being shown by the market in stem cell companies throughout the world, we will be able to recoup the significant value lost to us in recent years by the actions of current Geron management in discontinuing this business.
They will end up owning 7% of BioTime Inc. It's certainly putting all your eggs in one basket. Either a brilliant or disastrous move...only time will tell.|
|Which begs the question of why the managers opted for this over-weight position ?
Should shareholders push for management changes ?|