Record Share Discussion Threads

[felix99] 07/2/2014 16:46

I like the stock - happily been in a while and quite heavily.

Reminds me of when CLIG was small and when it was growing its FUM and share price then took off.

All this emerging mkts stuff means a lot of peeps probably lost a few quid as the noddy currencies crashed and they wished they had a hedging strategy in place. So demand should be very healthy from their target client and it should be like shelling peas pushing at an open door.

These guys appear to have a good system and record for managing these issues for people - so they have a good product, good reputation, growing FUM which means other client will be far more happy to come on board ( if other people are then they must be kosher so we will appoint them and then it becomes self fulfilling) and a healthy market to attack.

I reckon they should add on loads of new FUM in a relatively short space of time over next few months.

The business will be operationally geared so with lots more FUM its just profit straight to the bottom line - I would imagine all they need to add are salesman and account managers.

So essentially you got profit growth to boost the share price and you then have the opportunity to hit turbo as the rating multiple of the share moves up as well.
They have a fair bit of cash ( 10-15p per share ) and so stripping that out, the p/e is not very big for something that made 2p last year (31 Mar 13) and is forecast to make 2.4p this year ( 31 Mar 14 )and only 2.5p for 2015. Only seems to be Edison covering them but I reckon as they are on the up the mgt might do a bit of City smoozing as well.

[topvest] 07/2/2014 08:57

Yes, a very big jump. Interesting.

[tmfmayn] 07/2/2014 08:22

Included in the Chronic Investor's 'Bargain Share' portfolio.

NBU, HAT, CAMK, PVCS, ARDN, BDEV, TW., BMY, REC, OPM, FTO, CCAP

[gargoyle2] 07/2/2014 08:17

What's going on here? Can't see any news.

[topvest] 14/1/2014 09:57

Yes, very good news. Definitely starting to recover and win new mandates.

[142minty] 14/1/2014 09:56

hurrah

brand new performance fee earning dynamic hedging contract in place - lets hope we get lots more of thesem in the near future. would be interesting to know if thuis is with US based company

[gargoyle2] 10/1/2014 11:35

Good to see some buyers in here the last few days, price has been firming.

[tmfmayn] 10/1/2014 10:14

Scanning the Record website a link referring to Kentucky Fried Pensions caught my eye:
hxxp://www.recordcm.com/on-the-record/chris-tobe-kentucky-fried-pensions/

All triggered by a self-published book about Kentucky Retirement Systems and its use of Record's Dynamic Hedging product between 2009 and 2011:

hxxp://www.recordcm.com/media/48783/record_currency_management_re._chris_tobe_sep_2013.pdf


hxxps://kyret.ky.gov/Research%20and%20Education/Currency%20Hedging%20Program%20Review.pdf

The book seems to suggest various shenanigans at KRS and Record, all denied by both parties. Upshot seems to be KRS used the product, found it caused a drag on the overall performance (in part due to the 'high' costs), and a new investment team at KRS decided to ditch it.

The contract termination decision stated in KRS document above was made one day before this announcement:


The KRS document does provide a good insight into the decision making, performance and background to these contract awards.

[gargoyle2] 02/12/2013 10:23

Couldn't resist another chunk of these today. There's a seller in the background, but that looks like a good opportunity to me.

[topvest] 01/12/2013 17:54

Yes, I think Record are a good quality outfit with the potential to become much bigger. One day their "Currency for Return" product will also come back into fashion. cZero % interest rates are not here to stay.

[gargoyle2] 30/11/2013 16:25

Bought in here last week, after first being alerted to REC by those recent large director/insider buys. Subsequently (today) saw the latest Edison report dated 25 November. It's here, although you might need to register:

It states:

"Record's underlying PBT increased 21% in H1 due to growth in AUME and operational leverage. Although the recently announced reduction in average fees on existing business will reduce the revenue run rate, Record has done this to position itself for future expected growth; it is hopeful that new client wins will more than compensate. New business enquiries are at their highest level since 2008. Record has announced it is in advanced discussions relating to a 'handful' of new hedging mandates ranging in size from $1-10bn. Our fair value of the existing business is 33p. This increases to 49p if we assume $2bn pa of new dynamic hedging mandates."

I'm expecting new contract wins to be announced over the coming weeks, which I reckon will see the price move up.

[topvest] 15/11/2013 21:23

Yes, it looks encouraging here. The fee reduction should be seen as a positive as they should be able to both maintain existing business and win further mandates. It has been funded indirectly through the recent contract win and so they have a very good platform to expand from. All the signs of a quality business here. It will take time, but they could be materially bigger in 5 years time and multi-bag several times from here in my opinion.

[142minty] 15/11/2013 11:25

part of the rationale of reducing fee levels on dynamic hedging mandates is so that they can tap big US contracts bhecause they will become more competitive. I am expecting them to pick up some decent new mandates before fiscal year end.As stated the decreaese in fee effect is practically offset by the new PH contract anyway. This company is trading too low against all its peers.My calcs should put it in the 37 -40 p range and that without any new contracts.Onwards and upwards. the drop last week now looks totally overdone based on these results

[wjccghcc] 15/11/2013 08:37

Or possible increased next year as new mandates kick in. After all, 45% of the mkt cap is net cash.

[ayiman] 15/11/2013 08:19

About time! very nice dividend yield too with every prospect that it will be maintained.
ayi

[germalene] 15/11/2013 08:09

Some encouraging results out today :-))

[orchestralis] 11/7/2013 09:19

IC covered it in 5 July edition

[142minty] 10/7/2013 15:44

whats been going on here?lovely buying upwards movement and sustained volumes last few days. has there been some favourable coverage or somethimng?

[topvest] 19/6/2013 18:43

Yes, agreed - the important point is that they are starting to win mandates. Asset Management mandates are often like buses - nothing at all or lots come at once!

[ayiman] 19/6/2013 17:21

topvest,
just letting you now you are not alone! Lets see what happens tomorrow when it goes xd but I think tho has some way to go yet.
Ayi

[topvest] 11/6/2013 20:52

Very encouraging results today and pleased with my recent purchases. At long last the bottom appears to have been reached and trading is starting to look encouraging with increasing AUM. Some more contract mandates and this could start to return some very good profits indeed over the next 2/3 years.

[topvest] 11/6/2013 20:52

Very encouraging results today and pleased with my recent purchases. At long last the bottom appears to have been reached and trading is starting to look encouraging with increasing AUM. Some more contract mandates and this could start to return some very good profits indeed over the next 2/3 years.

[topvest] 04/6/2013 09:47

I've decided to double up here at 33p - I do think that they have a valuable business franchise here and in a post-QE world (probably 2-3 years off) the "Currency for Return" project may well bounce back. Indeed I suspect business will pick up in anticipation of changed conditions as investors seek to get ahead of the curve. Anyway I think the 1.5p dividend is safe, which gives a 5% yield whilst we wait!