Braemar Share Discussion Threads

[edmundshaw] 25/1/2017 18:48

I have checked up, and based on a legal source, clearance to deal is required for the PDMR by an appropriate (designated) board member or designated PDMR. Also the clearance should have been denied. This appears to be a cut-and-dried failure to comply with FCA guidelines on listing rules and, if the FCA takes the issue up, could result in a sizeable fine either for poor controls or for non-adherence - this is irrespective of whether any detriment to the market or investors has occurred. Of course there is a question about whether the FCA will bother given the size of the deal, but it is definitely not OK.

ref: hxxp://uk.practicallaw.com/9-518-6569?service=ld

[phillis] 25/1/2017 18:42

Trading statement at similar time last year so update hardly a surprise
Anyway a PMDR should ask permission
It seems he didn't and was tardy in advising the Company anyway
A call to the FD seems appropriate

[shalder] 25/1/2017 18:21

I would welcome some clarity from the co re this PDMR transaction 5 days before a company announcement with major share price impact, as by that point there would already be at least draft documentation in existence.

[edmundshaw] 25/1/2017 17:48

Just got in and saw that RNS. Clearly it was a closed period, he knows he is a PDMR and presumably would have needed permission from the company to trade, and I can hardly believe that he was just lucky. So it looks pretty wrong to me.

[rivaldo] 25/1/2017 13:52

Interesting RNS just out. Alongside the director buying I see Kevin Gorman (MD at Cory Shipping) sold £47,000 of shares at 306p on 18th January - just 3 working days before Monday's disastrous trading update.

He's evidently a very perceptive - or lucky - guy.

EDIT - sorry speedsgh, posts crossed!

[speedsgh] 25/1/2017 13:48

CEO & a NED dipping into their own pockets. Relatively small amounts (£39.5k & £49.8k) so not taking too much comfort from it. They were bought yesterday at 249p.

Also slipped in at the end of the rns is notification that a PDMR sold just under £47k worth at 306p on 18 Jan. Trading Update was released on 23 Jan so would seem rather fortuitous timing! How that isn't insider trading I don't know. Not impressed!

Director/PDMR Shareholding -

[topvest] 24/1/2017 19:03

I agree. 14p seems to be the consensus view. Obviously depends on trading in FY18 but they have a very robust balance sheet.

[grahamburn] 24/1/2017 14:43

The clue is in the trading statement where it says:

"The Board's intention for the medium and longer term is to pay a dividend appropriately covered by earnings from underlying operations."

That covers the Board's back, though is slightly ambiguous with the words "appropriately covered by earnings" - is that covered once, 1.5 times or what?

However, IMO the Board wouldn't have given the indication of a cut to a 14p dividend this year, only to cut it again next year. So, guess that Edison have it about right predicting the same for next year.

[shalder] 24/1/2017 12:16

Agree with all of that.

[edmundshaw] 24/1/2017 11:33

I am not expecting a dividend at 26p any time soon either. Just think that reducing the dividend to around 13p-15p is enough provided markets recover through the cycle. That is what Edison are indicating, and their information should be more based on some contact with management. But they have left themselves wiggle room in case conditions continues to be tough, and obviously they would not want to have to make a further cut.

[spooky] 24/1/2017 10:39

shalder i don't think it is a forgone conclusion in either direction, it will depend on how trading goes over the next 6-12 months. Obvious but true.

[shalder] 24/1/2017 10:37

But the comments re dividend are well founded imo. The total payment of 26p has not been properly supported by eps for several years, so in a sense current trading has forced an overdue bod decision. Now they have bitten the bullet, that rebasing is not going to be reversed in a hurry, so expectations that the annual total divi will quickly bounce back are misplaced. All dyor!

[phillis] 24/1/2017 10:00

You are just too naive Edmund

The decision on dividends is one of the most important BODs make and a lot of thought goes into it (and the message it sends)
Companies don't lower and then raise their dividends willy nilly
The final divi will have been announced with due insight and consideration of the following year's final from which it will be anticipated to make a small increment

You surely dont expect a final of 5p and then a similar next interim with a bigger next final

Grow up
The dividend has now been rebased

[edmundshaw] 24/1/2017 09:46

Phillis, talking about a 1.5p interim dividend is just silly. No-one is going to believe that, and you are not going to push the price down by saying it.

My expectation is for a 5p interim and perhaps a 10p final if conditions do not deteriorate further. They are already pretty bad, so that would be disappointing in the short term, but medium to long term this stock and it's dividend can be expected to recover.

[cwa1] 24/1/2017 08:21

Update from Edison(may require registration):-

[haywards26] 23/1/2017 20:44

BMS has been on my watch list for years. Like topvest mentions above, a watching brief to see how the price moves over the next few weeks would be sensible. A reduction to £2 and I buy my first tranche.

Shipping is a very cyclical sector, with the current times being not far from the bottom I feel. Increasing oil prices and growing US and Asia economies being significant factors.

[topvest] 23/1/2017 18:22

It's not quite that straightforward. The core business is worth more than the market capitalisation. Tempted to await the results and double-up on signs of stabilisation in technical services. Best not to buy until 6m after a profit warning. 12m is probably optimal, but will reassess when we get some financials and an outlook statement.

[freddie ferret] 23/1/2017 16:29

As expected, divi cut.
PE still around 25 so overpriced IMHO

[phillis] 23/1/2017 16:13

final dividend is 5p
next interim likely 1.5 to 2p until business kicks up - if it ever does

This is the BOD signalling the future

[3800] 23/1/2017 15:59

For those who are satisfied with a 50% capital reduction per anumn this has certainly been the share to be in. Going folward good luck to all holders I think you are going to need it.
3800

[edmundshaw] 23/1/2017 14:17

Phillis, by not being explicit they have given themselves the latitude to have the full year dividend at around 8p, though they did say the full year dividend would be 14p, which might be regarded as a more likely guide. But what they actually said explicitly is the intention for the medium and longer term is to pay a dividend appropriately covered by earnings from underlying operations. Which means no particular number, just a fairly fixed ratio of earnings.

[8w] 23/1/2017 14:16

No mention of the dollar hedge in the money. Have I misunderstood this or is there a windfall awaiting?

[pbutterworth1] 23/1/2017 12:58

can anyone clarify if BMS is still commited to oil services activities ? the rns was not clear in this regard (drastic cost cuts) and this was a key reason for me to buy as a recovery stock. Thanks Philip