Hargreaves Lansdown Share Discussion Threads

[imastu pidgitaswell] 20/7/2020 15:37

... And the Monday bounce back.

It's nothing if not predictable...

[imastu pidgitaswell] 17/7/2020 16:21

Friday afternoon dump ahead of the Sunday Times slagging...

[imastu pidgitaswell] 17/7/2020 11:15

That is a big volume spike at the day's low (so far). Very nice opportunity, duly taken.

[ochs] 16/7/2020 19:01

Excellent results covering the Covid period from the much smaller peer Jarvis Securities (JIM) announced today - so bodes well for HL full year results and outlook.

[porsche1945] 15/7/2020 09:02

2paulo
Yes I’m well up on their results and all the other news thanks, Iv earned 18k trading these since March, with iWeb, 5 quid a trade, and that’s what they are, a range bound trading stock. Tbh I don’t think the results are that important, what’s holding the share price back is the heavy falls in ftse 350 (U.K. as usual worst market of all, brexit/covid fiasco) affecting aum, bad press and more to come with Woodford legal challenge and owners endlessly now drip feeding sales into the market causing overhang. They are a good trading stock but I wouldn’t want to be holding them, semi ex growth and poor dividend with an overhang, why bother? I’d rather invest in the S&P which has a future and trade the U.K. 350 and aim, which don’t haha.

[ochs] 14/7/2020 19:08

AJ Bell not based in Bristol ;)

[saltaire111] 14/7/2020 18:05

They should bid for AJ Bell and combine their customer bases, and halve their combined administrative staff. Turbocharged returns post merger.

Wish they’d get on with it.

[imastu pidgitaswell] 13/7/2020 09:48

No kicking in the ST this week - so share price up?

Looking at the share price performance and results (income doubling etc) of some of the spreadbetting companies, notably CMCX, it is highly likely that the increase in trading commissions is becoming significant, even for HL, who can do all of those things on a strong platform - just without leverage. They have already stated how much more volume they were having, and it is a question of its sustainability. The absence of leverage will (I think) result in the increased volumes being maintained (as few of their clients will go bust, unlike the spreadbetters).

We don't know yet, but will be interested to see an update.

Meantime, happy to trade in and out - sold some of Friday's purchases.

[lomax99] 13/7/2020 08:42

Results due on 7 August, reckon they will have had another strong quarter.

[imastu pidgitaswell] 10/7/2020 15:47

No idea - probably ahead of the weekly kicking in the Sunday Times.

Just make use of it, it is reversing somewhat now - quite a volatile share and some good money to be made. I also know they're making a lot of money from my trading activities, and as they have stated, for many of their clients.

Added lower, but not at the bottom.

[gerard walsh] 10/7/2020 14:16

Why the drop today when the market is up?

[j0sekl] 08/7/2020 21:21

I considered spread bet firms when covid-19 hit but unless clients are making money I didn't see enough visibility of LT supernormal profits. One volatile period gives near term earnings, sustained volatility however results in people retracting liquidity.

Therefore I never used the market spotlight as a consideration in valuing HL.. it has always been about the platform advantage and penetration into the retail space. Hence my frustration at their weak investment advice.

[paulof2] 08/7/2020 19:59

Porsche did you even bother to read the last trading update?

“ However, at the start of March, the significant market falls caused by COVID-19 and the subsequent emergency cuts to the UK base rate of interest negatively impacted asset-related revenue streams. These impacts were more than offset by significantly higher stock broking revenues driven by record dealing activity. March and April both saw a series of new daily records and monthly dealing levels more than double the highs ever experienced before this period. Overall, this has resulted in year to date revenue of £448.1 million (2019: £395.9m), 13% higher than last year.”

So Any impact more than offset by record dealing levels which are more than double last year.

If the dealing can offset the reduction when the markets are at their lowest they must be doing seriously well now as the markets have rebounded and the turbulent markets are making more people trade than ever before.

[ianguerin] 08/7/2020 06:18

"The value of markets has fallen" presumes that equities are the only investments. An account holder with a 40% equity:60% bond/gilt split could have a portfolio now worth more than it was at the February equity market peak. Then there's Ochs observations too.

[ochs] 07/7/2020 19:12

Not all markets have fallen... for example Nasdaq is now at record highs.

The HL charges are calculated monthly, so will have taken the biggest hit at the end of March (but that's only 1/12 of annual revenue). Since then overall I don't think it'll have been too bad - even the main indexes are now only 10% to 20% off their all time highs.

[porsche1945] 07/7/2020 18:50

They make money on aum not much on dealing charges, the value of markets has fallen so therefore their aum will have fallen and the fees generated thereupon, plus a lot of their own funds are actually really really dire, their own fund managers are dreadful, the value of a lot of their own funds where they really earn fees on have dwindled too. This has had its moment and the Woodford legal challenge still to come. Avoid. Will be picking these up 12-14 quid soon.

[paulof2] 06/7/2020 13:16

J0s Youve raised some good issues but I’m in due to the fact that because of covid this is likely to be the best year in HL’s history by some margin.

They’ve already alluded to the fact Covid has really helped matters and with more customers buying and selling shares at every up or downturn which is basically every couple of days I can’t see how they can’t be doing very well from their extortionate fees.

I’m not expecting massive returns from this but see it as quite a safe play, would expect it to return to roughly £18 like we saw at the start of June with a small token dividend on top.

[j0sekl] 04/7/2020 19:09

No real catalyst for HL to be moving upwards. Indirectly HL's negotiations and fund recommendations affect the AUM of what it provides and distributes. The majority of boutique funds worth owning they never onboarded, and of the few they did get that are worthwhile, fees are high and HL have been unable to identify whom these winners are.

So apart from Woodford, let's look at some other idiotic fund picks they've gone for in recent years.... M&G UK Recovery... A generational dog of the fund universe, HL have failed to identify why it's a bad pick.

Aberdeen Asia.. HL've probably never set foot in Asia, this is a simple case of them being schmoozed by Aberdeen's UK marketing. HL have no real network for foreign market fund managers.

Majedie is a great UK equity fund, hence the cost, but they are NOT growth as HL mislabel them.. BAE Systems, Shell and BP are among the top 10. Top pick is Unilever, the only growth that gives is in-line with inflation, zero real growth.

HL's wealth list is probably one of the worst culprits behind misallocating weak propositions to the UK's retail/wealth client base. Furthermore, HL don't provide a proper reference benchmark for many of its fund products despite those being directly available from the fund houses' factsheets. e.g MSCI.

Yeah the platform itself is alright and buying UK equities is cheap. One good pillar of strength at least.

Finally these past few months saw many dislocated valuations appearing everywhere... HL is still an alright long term pick but there's stronger growth ideas that came down and this is more of a slow burner.

Will potentially be back one day for HL. But with the founder having sold a chunk last year, and getting more hands-off as time passed with his age, this is still a structural opportunity in terms of DB and fund-shares ISA..but reputation wise HL has come under more heat than I'd like, given worse advice than I expected, and that now questions the quality I expect from this business.

Just my opinion, and I acknowledge there's a good chance HL will make plenty of money for shareholders over a full cycle, but this is not a top pick imo right now. I will continue to monitor.. and if the valuation was compelling enough I might..

[growthpotential] 02/7/2020 12:48

Thanks chaps, I agree I think one of my old workplace pensions is with a very Stone Age company, doesn't surprise me it can't be done electronically!

[ochs] 02/7/2020 11:55

I think it's usually down to the old provider - some allow electronic transfers, others don't. Generally if you're trying to transfer an old employer/company pension the requirement for transfer paperwork to be completed is more likely.

[imastu pidgitaswell] 02/7/2020 09:14

I moved Mrs P's 3 fairly small separate pension pots (i.e. not yet taken, we're not 55) to a HL SIPP recently - it can be initiated online, and then it's down to the individual transfers; some don't need anything else, some need paper forms completed and signed - it's all quite painful, but I, sorry she, got there in the end and now up and trading.

Her portfolio is remarkably similar to mine...

[growthpotential] 02/7/2020 09:10

Anyone tried to move a pension to HL SIPP and can't be done electronically, any reason why?