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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Honeycomb Investment Trust Plc | LSE:HONY | London | Ordinary Share | GB00BYZV3G25 | ORD 1P |
| Price Change | % Change | Share Price | Shares Traded | Last Trade
|
|
|---|---|---|---|---|---|
| 0.00 | 0.00% | 790.00 | 0.00 | 00:00:00 |
| Bid Price | Offer Price | High Price | Low Price | Open Price | |
|---|---|---|---|---|---|
| 780.00 | 800.00 | ||||
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| - |
| Last Trade Time | Trade Type | Trade Size | Trade Price | Currency |
|---|---|---|---|---|
| - | O | 0 | 790.00 | GBX |
Honeycomb Investment (HONY) Share Charts1 Year Honeycomb Investment Chart |
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1 Month Honeycomb Investment Chart |
Intraday Honeycomb Investment Chart |
| Date | Time | Title | Posts |
|---|---|---|---|
| 31/10/2022 | 22:43 | Honeycomb Investment Trust (HONY) - targeting 8% dividend | 79 |
| Trade Time | Trade Price | Trade Size | Trade Value | Trade Type |
|---|
| Top Posts |
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Posted at 25/3/2022 15:41 by cc2014 41.3k share buyback yesterday at 895p.I'm suprised they could get that volume at that price. I'm also surprised that given the buyback, the general strength of the markets and confirmation there is no Russian exposure the share price hasn't returned to something closer to where it started. i.e. around 950p. I guess it will get there slowly with the buyback |
Posted at 22/2/2022 10:14 by redhill9 rambutan2, your post #58 about the potential for the new company to have capital growth when the existing HONY doesn't misses the point that existing HONY shareholders bought for income. I hold HONY in my income portfolio and it's income I want, not growth.Maybe the new company can provide annual returns of combined dividend and growth greater than HONY does now but that isn't what I bought the shares for. I'm happy to wait for now and see what happens but if I didn't already hold HONY shares I wouldn't be buying them for my income portfolio, which is where they are currently sitting. |
Posted at 21/2/2022 12:24 by rambutan2 redhill9, HONY in its current form offers the high div - which itself is not invulnerable - but zero capital growth. Attaching Pollen St to the entity offers the potential for real growth, including income growth. The money Pollen St runs is mainly in long life closed end pools, with good management fees and performance fees on top. A potentially very lucrative business. Of course, the question is, are Pollen St capable of pulling in the money. I assume the large shareholders, who know Pollen St well, think that they are. If so, a few years down the line, HONY would be a much bigger company and on a much better rating. Something more akin to Intermediate Capital (ICP) a few year's ago. Aimho |
Posted at 21/2/2022 12:12 by cc2014 If you want the upside argument Pollen have a very good track record over a number of years and imho the dividend was at risk anyway as generating a 8% return with interest rates close to zero required a certain level of risk.I can see why some shareholders are selling out as the new entity has a different mandate than they bought in for, plus as far as I can work out Pollen want to retain some of the returns in the fund rather than pay it all out as dividends. I'm not bothered whether I get 8% dividend or instead 5% dividend and 3% capital growth but I know many income seekers are. It would be my guess that the big shareholders who have voted for this at a share price of 950p surely see value at 850p and the share price will drift back up as they buy a few more. How much of the gap will get filled I'm not sure, but a bounce back to 900p+ does not seem unreasonable. I expect some holders will be happy to let their shares go as the share price recovers. |
Posted at 21/2/2022 11:58 by redhill9 Looking at the dividend situation a bit more closely, it looks as though for 2022 the dividend will reduce from 80p to 60p (on the basis of 100% of existing shares being eligible plus 50% of the new shares) which is a yield on current share price of just 7%, with the dividend increasing to 64p in 2023 on the same share eligibility basis, then reducing to 51p in 2024 when all the new shares are eligible. On the face of it not attractive for HONY shareholders, so why would anyone vote in favour?The large HONY shareholders who have pre-approved this deal clearly know more detail about the prospects for the proposed new company than we do. If the merger was some form of "stitch-up" designed to transfer value from HONY shareholders to Pollen I'm struggling to understand how the likes of M&G would go along with it, as they appear to have done. It's puzzling but I'm inclined to sit on my HONY shares for now and see what happens. |
Posted at 17/2/2022 10:36 by redhill9 The announcement was presented as being a very positive move for Hony shareholders including the comment "the potential for significant re-rating and valuation upside.I'm guessing the move away from being an IT will have put off some current shareholders as, apart from it being a slightly odd merger and concern perhaps over dividends, I couldn't see any other particular aspect that might be considered negative. I bought Hony for the dividend which has been held at the 20p per quarter level consistently for some years and I suppose there must be a risk of the share dilution affecting this payout (although 50% of the new shares won't receive dividends until 2024 which will reduce the short term dilution impact, if any). They talk about dividends cost increasing over the next three years with £30m expected to be paid in 2022 (assuming the merger goes through) increasing to £32m in 2023 and at least £33 in 2024. This compares to a cost of dividend of £24.5m in 2020 (the most recent year available but I'd guess 2021 will be similar) so it looks as though the deal may have been structured that, broadly, existing Hony shareholders receive much the expected dividend over the next three years but with reduction possible when all the new shares are eligible, unless profits have grown enough in the interim for this not to have an impact. I'm intending sitting on my holding unless a material change in the dividend policy becomes evident. |
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 09:08 by peterjw The announcement seems to have knocked the share price this week. Has anyone any views as to why this might be please? |
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 |
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