Jarvis Securities Share Discussion Threads

[thrugelmir] 26/4/2024 11:17

Company Name: JARVIS INVESTMENT MANAGEMENT LIMITED
Company Number: 01844601
Received for filing in Electronic Format on the: 31/10/2023 XCFBTHHL
Termination Details
Date of termination: 30/10/2023
Name: MR JOLYON CHRISTOPHER HEAD

[ih_818120] 26/4/2024 09:04

Great to see all the JIM share buying and a rising share price

Mmmmmmmm !

[ih_818120] 26/4/2024 09:01

Sorry for the delay in replying John,

I don't know if I am wrong. The recent results still show jolson head in the list of directors renumeration.
If he had resigned he would be down as a EX..... nodding head !.

---

tenapen30 Mar '24 - 20:24 - 3482 of 3535
0 2 0
Directors

Andrew J Grant
Kieran M Price
Jolyon C Head - £98,156 + £60,726 Total £158,882.
S M Middleton


The British way to pay for failure.

it's also the British way never to employ people who are smarter than you ...... Incase they take your job..... Mr Grant !

[aamhager] 25/4/2024 17:39

Normally I submit an order, get a quote and either accept or decline. In this instance, I accepted a quote of 61p but then a warning followed saying they will do their best and price is no longer guaranteed. I had no option to back out at this point. Not sure I have grounds to complain but I feel cheated

[sbb1x] 25/4/2024 15:28

Cant get a live quote to buy

[cwa1] 25/4/2024 13:28

Used up a dribble of dividend cash earlier to add 5000 at 61p through ii just after your post aamhager. Had to put a limit order on at 61 but went through fairly quickly.Probably best not to let them go "At Best" unless you really want them...

[thrugelmir] 25/4/2024 12:56

I'm able to obtain buy quotes for 5,000 @ 63p currently. That's the limit

[steelwatch] 25/4/2024 11:51

aamhager, presumably you traded "at best"? Unless the price moves against you rapidly, a "limit order" at 61p, or very close to, would probably have succeeded, although not instantly.

[melton john] 25/4/2024 11:32

The market size is just 1500 so more than that and you might have to pay more if only one market maker on the offer. I guess the market is a bit short after recent buys exceeding sales.
EDIT A delayed buy of 27000 from 0920 has just been printed so someone beat you to it I'm afraid.

[aamhager] 25/4/2024 11:04

Bought some through ii today. The quoted price was 61. Ended up buying at 63.5p. very annoying

[melton john] 25/4/2024 07:50

To be clear, confirmation that you were wrong.

[ih_818120] 25/4/2024 01:54

Thanks for the confirmation steelwatch.

[steelwatch] 24/4/2024 16:39

Jolyon Head's Linkedin page:

[steelwatch] 24/4/2024 16:19

I think ten got his information/misunderstanding from page 26 of the Annual Report. Of course, Head was a director during the reporting period and the accounts correctly report his emoluments for the 11 months or so up to his resignation.

[steelwatch] 24/4/2024 16:08

As Thrugelmir said above:

"The Board of Jarvis Securities plc is pleased to announce that Kieran Mark Price has been appointed as Finance Director of the Company with effect from 1st November 2023.

At the same time, the Company announces that Jolyon Head has confirmed that he will be resigning as Finance Director of the Company with immediate effect".

[cwa1] 24/4/2024 15:09

Solid volume and trades today

[melton john] 24/4/2024 14:58

Indeed just wondering what tenapen is on about.

[thrugelmir] 24/4/2024 14:25

" The finance director left the position but still kept his seat on the board "
Morning tenapen, can you explain what you mean here " kept his seat on the board" . Where does it say that?

He resigned from the board the day he left the job.

[qg holdings] 24/4/2024 12:47

Thanks for that info MJ.

In response to how will JIM make money from interest, the model is simple. Basically a certain percentage of cash is kept in an account for settling trades (think of this as a current account that doesn't pay interest), the remaining cash is kept in a different account(think of this as a savings account that does pay interest). Therefore with rates staying higher for longer returns on interest will stay higher for longer.

The FCA have been primarily concerned with looking for companies that are "double dipping", this happens when a brokerage collects income from interest AND either charges clients to have an account or charges interest on cash balances. JIM do not charge for cash balances or a monthly fee, therefore they are not "double dipping". Also it's hard to suggest they don't offer value to their customers when the price per trade is a little under half the charge from Hargreaves Lansdowne.

I have noticed various commentators/traders on Bloomberg and CNBC have recently been talking about the UK markets being good value and an opportunity for investment. This is in contrast to last year when very few expressed this opinion. The FTSE 100 breaking new highs suggests new money is entering the UK markets and animal spirits are returning. This can only be good for JIM as it will help increase trading activity by market participants.

We have seen a high ratio of buys to sells in the last few days which also suggests the market I waking up to both the dividend and value proposition JIM offers at these prices, which I believe to be materially too low. Hence the investment.

With regard to the share price coming down from it's all time high, I don't think it is fair to blame the UK coming out of lockdown and a subsequent drop off in trading activity across private investors on the Jarvis management. It is merely a consequence of people being allowed to go about their normal day to day business, and not being effectively under house arrest. I'm not suggesting this will rerate back to 350p,we are unlikely to see another COVID event in our lifetime. I do however see fair value at 150p-200p depending on how well the management navigate the next 2-3 years. I can collect and compound a very healthy dividend while I wait.

I understand some people will be upset at having bought in at a higher price. Trading can be tough, however it is always best to stay as emotion free as possible and to think logically about the current and future situation. None of us can change the past, by definition it has already happened. The future earnings and dividends suggest this stock is too cheap by most metrics and is therefore worth an investment.

I understand why some of you may want a lower price, I have been doing this for decades. The trouble is now the dividend has been reinstated sub 50p is an absurd target. For what it's worth I suspect there is a chance the dividend for this quarter may go up above the 1.75p, which I maintain as my base case scenario, I put the probability of another dividend skip at below 5%. The trading volumes and cash balance easily supports another quarterly dividend. Also worth bearing in mind JIM has a very good track record on paying regular quarterly dividends. One swallow doth not make a Spring...

I hope you all have a profitable day and may the FTSE 100 march higher still.

[melton john] 24/4/2024 11:35

Return on Capital 98.2%
Return on Equity 79.5%
Operating Margin 39.94%

Over £5M cash at the year end
P/E ratio 6.7
Enterprise value/EBITDA 4.04
Price to free cashflow ratio 5.1

Figures from Stocko.
Anybody need any more facts, tenapen?

[wasteof] 24/4/2024 10:54

8.4p - over 20% return at current price.

W

[melton john] 24/4/2024 09:34

I don't see why not. Business has picked up since the last one and according to Stockopedia the house broker is forecasting 11.4p eps and 8.4p dividend for the year.

[sbb1x] 24/4/2024 08:47

Do we expect a dividend to be announced in May ?

[melton john] 24/4/2024 08:24

" The finance director left the position but still kept his seat on the board "Morning tenapen, can you explain what you mean here " kept his seat on the board" . Where does it say that?

[thrugelmir] 23/4/2024 21:58

@Saucepan The FCA is targetting consumer activity not commercial. Likewise JIM will earn interest on pending settlement cash balances. Where the cash has been removed from the clients account.
With SIPPS it's been possible to hold cash on deposit with the SIPP provider. Rather than leave a balance idly doing nothing in the trading account. No benefit to JIM as a consequence.