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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Honeycomb Investment Trust Plc | HONY | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 790.00 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 790.00 |
| Top Posts |
|---|
Posted at 18/2/2022 10:12 by yieldsearch Closing price 14.02.2002: 967.5 penceNow 845/860 so 11.1% down Nav was 1017 in nov, so really now at a discount of 16% more than 11% decline since the RNS. interesting that the market has a different view than Quilter/CC beekeeper/phoenix/Ca if further decline, i guess the deal will be pulled out. The best would be to have some active investors getting involved to 1) get rid of pollen street 2) get rid of the board of directors supporting a deal that is, on current market pricing, destroying value for existing shareholder. |
Posted at 17/2/2022 10:26 by cc2014 #41. To add to Yieldsearch's comments reading from around post2 20 will throw up some other red flags about the actions of the manager of the Trust.I am struggling to unravel the transaction other it makes no sense to me for HONY shareholders. Again as Yieldsearch says why would a debt investor want to end up with a hybrid debt and asset manager? It seems designed to back parts of Pollen Street into a listing as a potential exit for Pollen Street shareholders. But only parts of Pollen Street. And then parts of the existing and future business of other parts of Pollen Street is included. I am not able, or sufficiently interested to try and fully understand the transaction. As with everything with Pollen it is insufficiently transparent to ensure I fully 100% understand what's going on. We all like a bargain but I can't work out whether this is a bargain... Somehow Pollen seems to have got the major shareholders on board and then the other shareholders have looked at the transaction and then run a mile. |
Posted at 17/2/2022 10:25 by medieval blacksmith Well, this is my take:(1) Previously you had a circle 8.4% dividend yield. Now that will be 6.5% and 6.6% if projections materialise. I don't see why not. (2) In return for the reduced dividend yield you get exposure to profits of a PE company. OK, it's 25% going forward but this is no different from a company having a minority interest in another. Plenty of those on the stock market already. (3) Yes, the make-up of the investment has now changed but I see the interests of PE capital are now more aligned with those holding the debt capital rather than before where there was a conflict of interest on business flow. Read my previous posts. (4) Investment Trust wrapper is being removed which was trading at discount to NAV and so if market price reflects NAV exposure there should be some intrinsic benefit to be had there. (5) Yes, it could well that there is incentive for PE capital holders to realise holdings but there are restrictions as clearly defined and one has to question what is in it for the institutional debt capital investors if there was no rationale from their point of view. (6) I think that because they are now more than just a debt capital provider forward growth prospects - if the PE equity group is respected - should be looked on more favourably which may include a rerating upwards. (7) I think the share price fall since the news are those selling due to uncertainty and alteration of the investment thesis. Most likely low volume retail investors. I have actually decided to buy some tranches based on this news. |
Posted at 17/2/2022 09:52 by yieldsearch peterjw:1) reduction of dividend:" with a 6.5% and 6.6% dividend yield on such shares in 2022 and 2023 respectively, based on the Honeycomb share price of 967.5 pence on 14 February 2022" 2) people bought for the dividend and credit exposure (a debt fund). now reduced dvd and mix of debt fund income and asset management fee. If i am buying a car, i don't want it to turn into a minibus. 3) Even if one is believing that receiving carried interest from PE funds, you will only get 25%. where is the 75% going if 100% of the asset manager is merged into Hony? 4) some individuals will have large exposure of the combined(i think up to 30%). Call me cynical, bu the whole purpose of this was to make their shareholding in the asset manager liquid, so they can monetise it overtime. so quite likely that they will sell overtime. potential overhang of 30%, this will unlikely trade at a premium. and those are insiders so will have to comply with rules as clearly they are shareholder and investment manager at the same time. just messy 5) conflict of interest. is management making decision for the stakeholders of the PE funds or for the asset management fee /income for Hony? 6) it would have been fair to offer HONY investors the ability to sell their shareholding at NAV. and whoever wants to stay can stay. 7) i have probably missed it, but there is not clear rationale for me mixing a debt fund and the asset manager. Hony was set up as a debt fund, why changing it? why not merging it with an oil company or a crypto fund? Hony directors must have a valid reason to change the investment policy, the dividend and the long term strategy of this company, it would be good to have it clearly defined. i am not invested in this, i am monitoring all the debt funds. i would have sold on the announcement. |
Posted at 17/2/2022 09:52 by andyadvfn1 It will cease to be an Investment Trust.If any HONY holders are in a similar position to myself they maybe sellers. Although I haven't sold yet ( I'm still trying to digest what it all means ) it does put into question why I shouldn't. I bought into HONY for the 8% regular income. Have doubts if this will apply going forward.May well suit some investors but not others. A a little bit miffed with it. |
Posted at 18/1/2022 10:28 by medieval blacksmith CC2014"My biggest concern with this Trust is how Pollen divide the business flow" I first came across this company when Woodford introduced it into one of his funds. At the time Hargreaves Lansdown were open to investors dealing in HoneyComb and I purchased a small direct holding hopefully gaining good exposure to this sector. (I do buy the argument that opportunity has come within non-bank lending and I think good opportunity exists too with credit at POS which PayPal are actively engaged in.) Hargreaves Lansdown subsequently actively tried to negate retail investors from dealing in this stock on their platform but I don't know whether that is still true or not because I can still deal. Maybe it is still available to those who dealt in the past before their stance changed??? Anyway, onto HONY itself. There does seem a strange set-up now where Pollen business flow gets divided between debt of HONY and their own PE etc.. If you look at the holdings the majority is institutional which reduces liquidity, increases spreads and has you wondering whether another surprise might be sprung on us small PIs when an institution wants to get out (another trade at 850p?). This could always leave the trust in a constant overhang position. One of the most important questions I would like answering is why these companies issuing credit to property developers and SMEs don't go to the money markets themselves rather than dealing with HONY. Their cost of capital would be instantly reduced if they were to remove the middle-man HONY. I guess it is down to licensing, regulation etc.. where perhaps HONY leverages Pollen because they are ex RBS with the right set-up and barriers to entry. Therein perhaps lies the problem that leaves HONY somewhat a puppet to Pollen even though they are supposed to be the selected 'investment manager': best costs for HONY and freedom to select manager are somewhat limited, no? Who is in control of who here? Anyway, it would be nice for a professional in this sector to enlighten us. Regardless, I'm not convinced Pollen and HONY investors such as ourselves have carbon-copy interests. IMO & DYOR |
Posted at 18/8/2020 10:35 by spangle93 Thanks CC2014. I hold (in hope) PSSL so I was trying to understand, based on the HONY merger proposition, why the latter should have such a discount and yield relative to PSSL.As Rambutan says, the proposed merger makes a lot more sense for HONY investors than PSSL holders on the face of it. |
Posted at 06/8/2020 21:09 by rambutan2 Makes sense, for HONY and co, not so sure re PSSL holders:6 August 2020 For immediate release Possible Combination of Honeycomb Investment Trust plc ("HIT") and Pollen Street Secured Lending plc ("PSSL") HIT today announces that it has made a proposal to PSSL regarding a possible merger of HIT and PSSL (together the "Enlarged Group"). As described further below, under the terms of the merger PSSL shareholders would receive new ordinary shares in HIT on a NAV for NAV basis (the "Possible Merger"). The board of HIT believes that there is an opportunity for shareholder value creation from the combination of HIT and PSSL to create the leading listed investment trust dedicated to providing finance to the specialty finance market. The HIT board considers that the combination of PSSL and HIT would be in the best long term interests of both companies and their respective shareholders. HIT has consulted with certain of its largest shareholders who have indicated they are, in principle, supportive of the Possible Merger. These investors also hold shares representing, in aggregate, 30.7 per cent of the PSSL total number of outstanding shares(1) . Key terms of the Possible Merger The possible offer for the entire issued and to be issued share capital of PSSL has been made on the basis of an unaudited "NAV for NAV" combination. Based on HIT's and PSSL's unaudited NAV per share (post recent share buybacks) of 1,016.4p and 948.8p at 30 June 2020 respectively, PSSL shareholders would be entitled to receive: 0.9335 new HIT ordinary shares in exchange for each PSSL ordinary share. Further information on the assumptions underlying our proposal is outlined in the Appendix to this announcement. Under the terms of the Possible Merger, PSSL shareholders would also be entitled to receive the dividends, if any, declared by PSSL in respect of the three month period to 30 June 2020 and the three month period to 30 September 2020, provided that the aggregate of the dividends for each such period does not exceed 12.0 pence per PSSL ordinary share and is covered by income for the period. The terms of the Possible Merger would not be adjusted for the dividends, if any, declared by HIT in respect of both the three month periods to 30 June 2020 and 30 September 2020 (and PSSL shareholders would not be entitled to receive such dividends), provided that the aggregate of the dividends for each such period does not exceed 20.0 pence per HIT ordinary share. The Possible Merger would result in PSSL shareholders owning approximately 65.3 per cent of the Enlarged Group on a fully diluted basis. In addition, subject to consultation with shareholders, HIT is considering alternative structures including either a partial cash alternative, subject to certain limits, or a share buyback programme post completion of a transaction. (1) Supportive shareholders comprise: Quilter Investors Limited (14,603,993 shares), Standard Life Aberdeen plc (4,740,501 shares), Thesis Asset Management Limited (1,669,314 shares) and AXA Investment Managers (1,640,000 shares) |
Posted at 18/6/2020 20:50 by praipus Weiss Asset Management taking 5%I try to track Weiss Asset Management and other value investors and their holdings on the WAM thread |
Posted at 29/1/2020 17:58 by scallywagkid Why would you hope the share price drifts lower?The Amigo bond is only 1.84% of NAV?Management buying, albeit cheaply, plus M&G addition is at least reassuring? Certainly a pre-emptive offer would have been good for existing investors and the seller but it takes too long to organise when seller clearly under regulatory and liquidity pressure.Honey share price has been under the Woodford cloud for sometime and will remain so until stake placed out. The business however has continued at a similar pace. Recent trading update supports that. As an investor I'll look past 'market' issues while ever business unaffected. Agree, would be helpful if retail market could buy again. |
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