Record Share Discussion Threads

[topvest] 10/3/2015 21:37

All this currency volatility must be good for business. Euro rate is now 1.41 - that is a very dramatic move. About 15% in a few weeks.

[gargoyle2] 18/2/2015 09:45

More solid buying today.

[gargoyle2] 16/2/2015 11:17

Been very firm recently, and there have been some big buys today. If I was a chartist, I might be seeing a nice triangle pattern here -- resistance around 35p, but an uptrend (higher lows) over the last 6 months or so. If we can crack 35p, then (chartists might say that) we'll be back up to the early 40s pretty quickly. I'm not a chartist though, so might be seeing things. DYOR.

[tmfmayn] 19/1/2015 09:06

Just thought more on this. Swiss shares have dropped 13% since the CHF move, so while fees from CHF into GBP will have improved, the CHF-based AUM those fees are based on will have dropped with the Swiss market. So overall I think the immediate effect on REC's fees is neutral. Main issue will be whether all the hedging programmes in place worked as expected. Stronger CHF though could mean more Swiss hedging interest, as REC as often mentioned a stronger USD has sparked greater interest among US clients for hedging. Let's see.

[tmfmayn] 18/1/2015 18:53

REC issued an update on Friday, no CHF comment though. Agreed, CHF move should be positive for fees and revenue. But did clients capture the move, or were protected from it, using REC's services as expected? Hopefully all worked out as planned and clients remain content.

There is always the outside chance the lamented currency for return products captured some of this big move and can tempt new clients to some FX action with juicy fees. All told, I hope this big FX move should prompt more consideration among potential clients about using REC's services.

[topvest] 18/1/2015 18:14

Not sure there is much uncertainty here. The CHF assets are simply worth more in £ and US$. About £2bn or US$3bn; worth about £1m/annum more revenue in £ terms by my quick calculation using average fee rates.

[skyship] 18/1/2015 10:16

Personally I'm surprised that the events of last week didn't suggest to them that they should make a clarification statement as to any effect upon the business of the CHF move - positive or negative.

Likely to be a lot to come out in the wash over the next week...

I don't hold; but if I were I wouldn't add in the face of uncertainty.

[topvest] 18/1/2015 08:43

I'm surprised that there hasn't been any comment on this of late.

At 31 March 2014 they had approx CHF18bn of AUM in Swiss Francs. These are worth about 20% more in £ terms which is a nice positive move for Record.

Trading update was broadly neutral. Nice small tick-up on currency for return AUM. Passive hedging up, dynamic hedging down. Nice new multi-asset strategy mandate win. Still not really gaining traction, but with all this currency turmoil of late things must be getting more encouraging. Happy to hold and may be tempted to add a few more.

[boonkoh] 09/1/2015 13:13

Tipped in IC as their contrarian tip of the year, hence the share price rise today. Would be interesting to see if it consolidates above 36p.

[topvest] 17/12/2014 08:53

Its the currency for return product that could make a material contribution if conditions favour it again. Hopefully progress will pick-up. Happy to hold and may even add more.

[felix99] 17/12/2014 08:33

they seem to have dollar based clients and they seem to be driven by dollar strength - as then clients want to hedge their foreign assets. So it should be sailing downwind for them but dollar has been strong for a bit and I don't see any major client wins still.

I got fed up and sold out a while back with a lack of progress.

[topvest] 16/12/2014 21:28

Aren't RECORD a beneficiary from all this foreign exchange volatility. They are not exposed to Rouble assets, but what's going on must be having a knock-on positive impact would you not think?

[boonkoh] 03/11/2014 19:12

Some good volumes today. What's driving this new interest?

[topvest] 22/10/2014 19:36

I like the fact that the currency for return product is starting to look encouraging again. This is a high margin product. It is cyclical, but when it comes back in demand that could massively improve profitability. Tempted to top-up.

[gargoyle2] 22/10/2014 08:17

38p price target.

[gargoyle2] 26/8/2014 10:25

Ahh,ok, thanks.

[boonkoh] 26/8/2014 09:55

Tipped in the Investor's Chronicle from Friday's issue.

[gargoyle2] 26/8/2014 08:57

String of buys here the last few days. Someone sees some value here.

[topvest] 17/6/2014 20:31

Results pretty solid. I'm still encouraged by this quality company. Dynamic Hedging is stable, passive hedging is growing...and, importantly, some sign of life in the previously super profitable currency for return segment. If currency for return comes back as interest rates rise then this could do very very well. In the meantime at a yield in excess of 4%. Nice risk return on a 1-3 year view I think.

[topvest] 02/4/2014 07:58

Still very good value if things do turn upwards over the next 1-2 years. Very happy to hold.

[felix99] 01/4/2014 22:16

Yes its just become a bit more long term for me. I thought the emerging mkts currency volatility would bring more business but it seems most of it is tied to the dollar and that has been steady of late.

[topvest] 01/4/2014 21:21

A bit of a disappointing update, but I suspect there are bound to be a few bumps in the road to recovery here. I'm guessing that interest rate rises will assist the currency market when that happens. Not sure about my maths, but is that an AUM loss of US$0.5bn at 20 basis points average revenue?

[durham dealer] 04/3/2014 11:50

Hi Saucepan- Just bought in for a small amount- the price action over the past two weeks has been very positive- hence just had to buy a little stake. Let's see :-)

[saucepan] 11/2/2014 08:25

Morning folks. I joined you long here this morning after some fundamental and technical research emerging from a ShareScope filtering exercise: an initial stake that I will build if things go well.

A quiet thread, too; usually a good sign :-)

[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.