Balfour B.10tqp Discussion Threads

[my retirement fund] 12/5/2015 12:54

I think we are beginning to see increased rotation from government bonds into higher yielding corporates myself.

If you take a look at government bonds they hit historical lows and despite recent profit taking there is still someway to go simply just to get back to the start of 2015 for them.

These recent gains have to go somewhere and inflows into corporates would make perfect sense to re-balance some risk.

[cwa1] 11/5/2015 09:06

Morning

Been a LITTLE bit perky of late. Just buying ahead of imminent XD at "bargain" prices, or anything more substantial?

[boadicea] 25/3/2015 16:58

They have passed the final ordinary dividend this year but expect to restore it at a suitable level in March 2016. The preference dividend is to be paid as usual.

[envirovision] 23/3/2015 13:29

Agree.

I take you sold as well then monty LOL

[alanji] 23/3/2015 11:54

I have jumped ship and very happy with a 9% profit in 5 months. At a 5.9% redemption yield on my sale price, the risk reward no longer justified holding in view of the current uncertainty.

[montyhedge] 23/3/2015 09:50

Would not touch these with a 50ft barge pole.

[envirovision] 23/3/2015 08:09

Looks like these have truly peaked !

[envirovision] 18/3/2015 22:40

ok I wont then !

At the present rate we will be seeing a lift by the ords back to at £1.30 ish. for the prefs.
Perhaps I should be getting more Sky?

LOL, I bought at £1.02 what a master stoke hahahe he :)

[skyship] 22/2/2015 16:53

enviro - "not buying more"...don't beat yourself up about that; I didn't average down for any on that absurd spike down - posted yes, bought no!

Due to a "Safety First" policy, just one of so many missed opportunities in recent months...

[tournesol] 18/2/2015 13:54

JimCar

thanks - senior moment there!

T

[envirovision] 17/2/2015 10:15

Just kicking myself for being to cautious and not buying more at nigh on one pound !!!

[envirovision] 17/2/2015 10:13

Probably because that is where I suggested they may be headed, that said I suppose we also need to start accounting for the possibility of BBY unlikely though it may seem, being above the conversion price come 2020.

The ords are seeing the most staggering recovery and if management do all the right things in the next 5 years .....

[alanji] 17/2/2015 08:09

Why are you using 125 when the current offer price is 120?
At 120 and allowing for stamp duty the IRR to redemption is about 5.4% , assuming no higher rate tax is payable.

[jimcar] 15/2/2015 23:05

T I think your calculations assume a payout to infinity whilst in fact the payout only continues to 2020 when the bonds will be redeemed for 100p thus incurring a capital loss which must be taken into account when calculating the redemption yield

[tournesol] 15/2/2015 18:11

Envirovision

Your numbers do not seem to stack up

If my arithmetic is correct a yield of 5% would imply a share price of 215p

Whereas a share price of 125p implies a yield of 8.6%

So which of these scenarios is it that you are anticipating?

T

[envirovision] 25/1/2015 22:38

Should see this fall to a redemption yield of 5% or even less imo, £1.25 seems highly feasible given whats going on out there at the moment

[yf23_1] 22/1/2015 14:12

Anyway, lack of an ord divi is better for prefs as there is more retained money to pay cumulative debts.

[noslien] 22/1/2015 13:29

The prefs are cumulative, any passed dividend (most unlikely) would be rolled up and is payable before ordinary dividends.

[skinny] 22/1/2015 13:22

Yes - I guess that's probably why the earlier sell off (confusion) has largely been reversed.

[yf23_1] 22/1/2015 13:02

I wouldn't have thought 'dividend policy' applied to the prefs as they are a form of debt, not distribution from profits.

[badtime] 22/1/2015 12:08

Recovered its early knock

[cwa1] 22/1/2015 08:13

Hmmmmm. Not exactly inspiring news from BBY this morning. Kitchen sinking by new boss? Hopefully shouldn't affect the dividend yield here-but the phrase and the dividend policy will be reviewed at the time of the full year results in March hasn't helped much.

With any luck the cancelling of the share buyback will allow them to cut the divi. but not cancel it all together and we can keep on getting paid here.