City Of London Investment Share Discussion Threads

[jayjmckenna] 10/3/2021 15:10

CLIG is part of a few indexes. When an Index Fund has a change in one of the components (like CLIG), the fund must rebalance. This is usually only done once a day

[melton john] 10/3/2021 14:43

CLIG isn't a stock where market makers have a monopoly so it's open to direct market access by people using low price per trade platforms. The market maker spread is 20p compared to about 6p for smaller quantities. The single share trades? I don't know.

[stun12] 10/3/2021 10:56

Just curious as to why there are always a plethora of tiny odd lot trades on CLIG. Any ideas anyone?

[montyhedge] 02/3/2021 16:52

That's was superb, thanks.

[masurenguy] 01/3/2021 18:20

Cheers Mayn !

[tmfmayn] 01/3/2021 16:53

I have no objection

[masurenguy] 01/3/2021 13:07

Thanks speedsgh, for the link to that review. I have put the link into the header since I think that it gives any new prospective investor a very good insight into the merged business. Since this information is already in the public domain I trust that Maynard Paton has no objection. I'll remove it if he does.

[cockerhoop] 01/3/2021 12:30

I don't believe Karpus collects a generous salary any longer, just his Non Exec fees.

His previous enormous salary now accrues to CLIG shareholders.

[speedsgh] 01/3/2021 11:44

CITY OF LONDON INVESTMENT: H1 Figures Reveal Record $10.9b FuM And Astonishing 55% Margin But Client ‘Rebalancing’ Keeps P/E Stuck At 11x -

[2wild] 01/3/2021 11:06

Totally agree Karpus is no mug and won't be selling any shares on the cheap, especially given he will be getting over £5 million in CLIG dividends every year, on top of his generous salary.

[eggbaconandbubble] 01/3/2021 10:45

Thanks Homer! :-)

Very good points.

[dangersimpson2] 01/3/2021 10:24

Karpus clearly not wanting to take it private given that he had a private company and merged with a listed one. The bigger risk is if he starts selling. But here a lockup prevents this in the short term. But more importantly, CLIG were building up their cash reserves in order to complete this transaction and in the end, Karpus wanted an all-share deal. i.e. he very much preferred CLIG shares to cash at the time. Things change but I would doubt he will be a significant seller anytime soon based on this reasoning.

With 31%, Karpus can block a takeover if he wants to, but a blocking stake also means that no one is taking the company over on the cheap. so this works both ways.

[eggbaconandbubble] 01/3/2021 10:09

Does this Karpus geezer pose any threat to other (certainly private) shareholders by having a 31.5% shareholding.

Can a shareholding of that size be useful to the person who owns it(either the current owner or someone else who acquires it)ultimately to the disadvantage of other share holders? By whatever means.

[montyhedge] 01/3/2021 08:22

Yes I like to reinvest the dividend of this into my Isa, below 500p would be a bonus.

[mach100] 24/2/2021 13:44

Unfortunately it seems they use divi reinvestments to boost the price before dropping it back once you have paid the premium. Still worth sinking back in though.

[melton john] 24/2/2021 13:13

19th March according to Stocko

[montyhedge] 24/2/2021 11:54

What day is dividend paid, for dividend reinvestment, don't want these to high o that day, 475p will do me for that day.

[johnrxx99] 24/2/2021 02:37

Feb 23
Analysts update estimates

The 2021 consensus earning per share (EPS) estimate was lowered from UK£0.46 to UK£0.36. Revenue estimate was approximately flat at UK£53.5m. Net income is expected to grow by 98% next year compared to 25% growth forecast for the Capital Markets industry in the United Kingdom. The consensus price target of UK£4.18 was unchanged from the last update. Share price is down by 7.2% to UK£4.88 over the past week.

Simply Wall Street

[montyhedge] 23/2/2021 18:51

I see an article in the DM by interactive investors regrading Isa millionaires, CLIG in their some of their portfolios, not stupid are they.

[masurenguy] 23/2/2021 16:09

23 February: Barry Olliff, has sold a total of 11,500 ordinary shares of £0.01 each in the Company at a price of £5.25 per share. Following this sale, Mr. Olliff's beneficial interest is 1,271,018 shares, representing approximately 2.5% of the Company's issued share capital.

[2wild] 23/2/2021 15:12

Deja-vu

2wild 11 Feb '21 - 11:32 - 2648 of 2690
Top sliced at just over 525p yesterday, a nice 19% profit on my previous purchase at 441p on 18th Jan.

Brought back twice as much at just under 512p, this morning. Currenly you have to pay near the offer price to purchase but can sell at mid-price, which suggests market makers are very short of stock.


12 Feb '21 - 14:24 - 2653 of 2690  Spread 522-550p
Top-sliced at 537.4p, 5% above my purchase yesterday.
at 511.97p.


Added today 23rd Feb at 511.64p. Ex 11p div next week. Should see a rise by close of play Wednesday 3rd March.

[masurenguy] 18/2/2021 13:43

Karpus benefit coming through strongly
18 FEB 2021 / HARDMAN CORPORATE RESEARCH

City of London has announced its interim results for FY’21. The merger with Karpus took place in the middle of the reporting period, which, together with strong market performance, has had a strong beneficial effect. Gross revenue grew to £23.7m, an increase of 37% over the figure from the same period a year ago. Statutory profit also showed a strong increase, even after the exceptional transaction costs and introduction of amortisation. On an underlying basis, earnings grew 81% to £8.82m, while underlying EPS was up 23%, from 19.4p to 23.8p. An interim dividend increase to 11p had been announced previously.

FUM: City of London provided some further details on fund flows and performance. Both the retail and institutional assets within Karpus saw net outflows, reflecting rebalancing more than transaction disruption. Five of its six strategies outperformed in the last quarter.

Amortisation and estimates: The transaction introduces a large amortisation figure: £1.1m for the last quarter. We have moved our forecasts to an underlying basis, with 2021E EPS now 47.1p, an increase of 24% over 2020 EPS. We have also introduced 2023 estimates.

Valuation: Despite the recent good performance, the 2022E P/E of 11.9x remains at a discount to the peer group. The 2022E yield of 7.2% is attractive, in our view, and should, at the very least, provide support for the shares in the current markets.

Risks: Although City of London has reduced its relative emerging markets exposure, it is still 47% of assets. It has proved to be more robust than some other fund managers, aided by its good performance and strong client servicing. Market volatility remains a risk, although increasing diversification is also mitigating this.

Investment summary: Having shown robust performance in challenging market conditions, City of London is now reaping the benefits in a more supportive environment. The valuation remains reasonable. After a special dividend in FY’19, a dividend increase in FY’20 and with the EPS boost from Karpus in 2021, the prospects for future dividend increases look very good.

[stun12] 18/2/2021 11:28

Hi, yes. the blocks traded at 500p (Barry's) sale and immediately afterwards again at 500.75p. As the price was slightly off-market at the time, it looks like a negotiated sale with a buyer already lined up. The MM would have made the 3/4p (£3,750). It does mean that they have found a home.

[melton john] 18/2/2021 08:51

stun12 Do you mean by crossed that it was the same 500000 going to and from a middle man at a a small margin?