Intermediate Capital Share Discussion Threads

[pvb] 30/5/2012 10:29

(My income will double in less than 9 years if that continues and the share prices should follow in time.)

I used to do these kind of calculations when things were looking good. I was always disappointed!

(The high yield index ticker for income shares in the FTSE 350 is HIX for anyone that wants to check.)

Thanks for that.

[aleman] 30/5/2012 10:14

Seems to be the same story with everything I hold. They are all turning in respectable updates, shares rise maybe 5% on the day and then immediately start to drift down again to end up where they started or a bit lower in only a few days or weeks. I'm down just a touch this year overall but the results themselves have been pretty respectable so the market seems to be anticipating bad numbers that aren't feeding through (as yet). It just seems like a repeat of last year, though, so I'm hardly surpised by it. Shares will catch up eventually if the numbers hold up.

Meanwhile, I am enjoying reinvesting dividends with some of the fat yields about so this cloud has a big silver lining as my overall dividend income is well above prerecession levels and is still rising nicely at around 8%+ per year. My income will double in less than 9 years if that continues and the share prices should follow in time. Given the success I'm having growing my dividend income in the current climate while others seem to struggle with different tactics, I'm surprised that high yield shares are underperfoming the market slightly - I would have expected outperformance in a period of sluggish growth and low interest rates. (The high yield index ticker for income shares in the FTSE 350 is HIX for anyone that wants to check.)

[stevemarkus] 30/5/2012 10:07

Be fair, it is ex-dividend today :-)

Steve.

[rcturner2] 30/5/2012 09:57

I can see this moving down. It is so predictable - up on the news and then slowly down again afterwards.

[rogerbridge] 27/5/2012 21:40

Northernlass, plenty of distressed sales from banks and new opportunities for ICP.

[northernlass] 27/5/2012 21:34

To Buy Stake in Symington's

INTERMEDIATE IN TALKS ON SYMINGTON'S STAKE, SUNDAY TIMES SAYS

Intermediate Capital Group Plc (ICP) is in talks to buy a stake in Symington's, a U.K. food producer which is seeking capital to buy new brands, the Sunday Times reported, without saying how it got the information.

Symington's, owned by Bridgepoint Development Capital, may be looking to buy Premier Foods Plc (PFD)'s Angel Delight and Birds Custard brands, the newspaper reported, and has been exploring ways to raise cash. Intermediate Capital may purchase a "big" stake, the Sunday Times said, without further details.

Source:

[northernlass] 27/5/2012 21:33

Profits Soar

PROFITS SOAR AT INTERMEDIATE CAPITAL

Intermediate Capital, the mezzanine financing company, has hiked its dividend and grown profits despite strong Eurozone headwinds.

Adjusted profits before tax in the 12 months to the end of March were £198.8m compared to £190.1m in the prior year.

Earnings per share increased from 32.6p to 47.7p leaving the company headroom to announce a final dividend of 13p per share, bringing the total to 19p, up from 18p in 2010/2011.

Third party assets under management declined 3% to €11.4bn, which Intermediate claims is due to the run off of old funds exceeding funds raised.

It's quite easy to understand why, with the Eurozone debt crisis making investors panicky about putting their money anywhere - although Intermediate Capital argues its model of providing different forms of credit at a time when credit from orthodox sources, like banks, is drying up, ought to stand it in good stead.

Commenting on the results, Christophe Evain, the Chief Executive Officer said:: "Our portfolio has shown resilience in uncertain economic times and our investment pace has picked up in recent months.

"We have recently acquired our third portfolio of discounted senior loans from a European bank and we have made our second sponsorless investment in Australia. In addition, we are at advanced stages in a number of new transactions. The economic outlook remains uncertain and we will continue to be extremely vigilant when making investment decisions."

The market was clearly impressed, Intermediate Capital shares were 7.3% up at 08:27.

Source:



See also F.T. - ICG soars 16% as it steals a march on banks



P.S.

Here's a couple of links about SCLP, one of the hottest stocks at the moment:

[aleman] 25/5/2012 11:40

Numis Securities Ltd BUY 23 May 2012
2012 243.80 39.20 19.00 -
2013 199.00 34.60 20.00 -
2014 233.80 40.40 20.90 -
2015 248.10 42.70 22.00

[davebowler] 25/5/2012 11:19

Next stop £2.80

[rogerbridge] 25/5/2012 08:03

Popped some of these in my ISA

[aleman] 22/5/2012 12:03

262.2/260.0 backwardation. Used to be very positive in the old days but I'm not sure it has the same clout with SETS.

Edit - Nope. Dipped slightly now

[davebowler] 22/5/2012 10:40

Very cheap;

Adjusted Earnings per share(1) 39.2p

[18bt] 22/5/2012 09:07

Bought a few more in mid woosh. Any guesses as to fair value in these markets: 270?

[rcturner2] 22/5/2012 07:52

Yes great results. I would expect good buying today.

[18bt] 22/5/2012 07:49

Decent results. These now look dead cheap, crisis or no crisis. Viewed as an investment company, these are on a huge discount to NAV.

[deadly] 22/5/2012 07:44

Strong results: now on a P/E of

[fittster] 19/5/2012 13:36

22 May 2012 Preliminary results announcement.

Lets see.

[rcturner2] 19/5/2012 08:44

JR - I do still have the 220p target, and I am pretty convinced it will get there. This is a great company and available at a great price. The "market" doesn't like ICP for obvious reasons, all the better for value investors.

[jrr774] 16/5/2012 17:41

RCT - yes, the liquidity rally is quite baffling - shows the short term nature of the market. However I think ICP is in a great position to cherry pick its terms going forward, esp if (when) banks reduce business finance exposure. Do you still have a 220p price target? Biggest problem IMO is its own funding position potentially, but maybe their recent bond issue is the sign of how they will address that. I've been watching for several months and curse myself for not getting in the 190s.

[rcturner2] 16/5/2012 08:27

Do people now believe me that it was a liquidity rally funded through central bank funny money?

Big big problems out there.

[rcturner2] 09/5/2012 13:48

RCTurner2 8 Mar'12 - 08:20 - 331 of 350 edit

ICP is a great company no doubt about that. I would love to get in again nice and low, maybe 220p.

Barlick, interesting point about the difference between the 100 and 250. It feels like a liquidity rally to me. If we get bad news (Greece for example) the market will tank. This suggests to me it is a short term rally in a bear market.

[rcturner2] 23/4/2012 10:26

My price target is 220p for a buy in this stock.

[hieronymous1] 13/4/2012 00:03

Confirmation of the market in Europe from private equity group: