Gen.acc.8se.pf Discussion Threads

[skyship] 27/1/2011 12:18

Some solid buying today - now 109p-111p - last chance to secure an 8% yield.

[skyship] 26/1/2011 16:06

GACA up 1p @ 107.5p-110.5p - could be that the comeback has started. Expect the gap to close within 8 - 10 weeks, ie up c.7% by end March. We'll see....

[skyship] 19/1/2011 17:54

In a perfect world GACA(black line) should track just above AV.A (blue line) due to the higher coupon. The chart shows that an anomaly last occurred back in Q2'09; but GACA suddenly closed the gap when buyer(s) spotted the opportunity.

The current anomaly will also close at some stage, so, the January sales are now on - stock up on some cheap GACA if you are considering buying an Aviva pref.

[skyship] 14/1/2011 16:38

Continuing my Public Service announcements on the 4 AVIVA prefs – all cumulative but irredeemable.

# AV.A 8.75% - 115.75p-118.5p – Yld on the offer share price = 7.38%
# AV.B 8.375% - 109.5-112.0p – Yld on the offer share price = 7.48%
# GACA 8.875% - 107.0-109.5p – Yld on the offer share price = 8.11%
# GACB 7.875% - 101.5-103.25p – Yld on the offer share price = 7.63%

NOTES:
AV.B & GACB will be going XD sometime next month.
AV.A continue to look overpriced.
GACA continue to look underpriced (in relation to its peers).

[slj] 12/1/2011 20:35

Nice stress-free holding that pays a good divi - that'll do me ;-)

[tiltonboy] 11/1/2011 13:27

EG,

You haven't answered why it should go up!!!

Just because you want it to go up isn't an answer.

As for name calling...lol...

[skyship] 10/1/2011 13:39

It will - but you have to be patient....

Bizarrely AV.A are now 117.25p-118.5p whereas these with their higher coupon can still be bought for 110p!!!!!

[envirovision] 10/1/2011 13:27

what so you can sell out at break evens......I think not!

[tiltonboy] 10/1/2011 13:20

Why should it?

[eric gardener] 10/1/2011 13:04

why doesn't it go up?

[marben100] 07/1/2011 20:02

Sure Joe, worth taking advantage of - but offer is limited and has various restrictions.

[joe say] 06/1/2011 12:39

marben - you're right re:8% in general terms but my bank (First Direct) pays 8% on a regular saver account (there is a monthly limit of £250), and similar is offered by Tesco's as well

[marben100] 06/1/2011 10:44

Eric,

As I've said before, you shouldn't invest in what you don't understand. Have a look at the two year chart in the header. Does just drop by 8% per year? No. Of course not. It drops each time it goes xd (as one would expect) but, all else being equal, slowly rises again so that the same value is reached by the time it goes xd again.

The whole point about holding irredeemible prefs is that they should pay a known income stream in perpetuity. If you're happy with that income stream, you hold, if not, you sell.

At 8% p.a. on cash invested at present, I'd rather have some of my money sitting in these than in cash paying diddly squat - but with NWBD paying closer to 9%, I've got rather more over there.

The chief risk, of course, is that when interest rates rise, the income steam will look less attractive - but I expect it'll be quite some time before you can get anything like 8% on your cash sitting in a UK bank account.

Mark

[eric gardener] 03/1/2011 22:23

they scorn me for telling the truth.

[the diviner] 31/12/2010 14:54

Eric Gardener - Filtered.

[pyemckay] 31/12/2010 12:33

zzz,,, boring indeed but this is a boring preference share. Quite enjoy getting a nice 4% every 6 months. Not many banks offering that just now.

[ted32] 31/12/2010 11:52

Eric Gardener.....Why not play the horses?

[eric gardener] 30/12/2010 19:58

zzz boring.

flatlining again - someone pull the plug and put us out of our misery.

[the diviner] 24/12/2010 12:19

Eric Gardener,

Calm down lad and take a few chill pills.

Here is a link with regard to dividend payments;



This share is all about dividends and fixed income and if trading is your objective, perhaps, you should sell GACA and buy the equity AV.

Regards,
TD

[eric gardener] 24/12/2010 11:07

when dividend paid?