Jup Ord. Share Discussion Threads

[asmodeus] 20/4/2020 07:49

Me too, redhill.

[skyship] 20/4/2020 07:41

redhill - that's very kind of you to say so.

Good luck & stay well...

[redhill9] 19/4/2020 17:42

SKYSHIP, it may seem as though you are talking to yourself on here but I for one read and appreciate every post.

[skyship] 19/4/2020 14:25

Interesting. Silver going nowhere - but silver coins up 30% over the past month! May go a lot, lot higher as everyone looking to buy and sources drying up due to lockdowns...

Loads of dealers - I used Sarniasilver.com

[skyship] 15/4/2020 15:07

Another good opportunity today.

Someone in need of cash today dumped 100k BBYB @ 98p. This when they redeem at effectively 105.375p in just 77days time - 01/07/2020.

Yes, BUY BBYB in a tax-free wrapper @ 100.6p (101.14p inc costs) and you make 4.18% in 2.5months, ie a GRY of 21%pa.

I've just added to my position; whilst thanking the seller & the MM for their generosity!

[skyship] 11/4/2020 14:01

Over on Lemonfool, someone posted a very useful link to all the IT ZDPs. I responded as follows:
====================

mc2fool - thankyou so much for that excellent link – repeated below. Makes life a whole lot simpler to actually know who is out there - though not all it would seem. The best value ZDP is not an IT. It is a housebuilder. INLZ can still be bought at 144.7p inc. costs, for a GRY of 8.62%.



I've used the site to look at other possibilities beyond my opening three:

# Polar Cap - PGHZ @ 106.25p. GRY = 3.6%
# EFJ Invs. - EFJZ @ 1114p. GRY = 5.8%
# Aberforth -ASIZ @ 101.0p. GRY = 5.6%
# Chelverton UK Div. - SDVP @ 102.0p. GRY = 5.4%

I won't look at Utilico - a rubbish IT IMO. Good for the directors, not for the shareholders.

Anyway; looking at the above stats it would seem as though I found the best three. As stated in my original post:

================
# Acorn Income ZDPs – 149p – Redeem at 167.2p on 28/02/2022 – GRY = 6.27%
# Inland Homes ZDPs – 143.4p – Redeem at 201.40p on 10/04/2024 – GRY = 8.84%
# NB Private Equity ZDPs – 110.7p – Redeem at 130.09p on 30/09/2022 – GRY = 6.7%

An equal investment across the three provides an average GRY of 7.29%.
=================

May have to pay 113p for NBPP now; but GRY still 5.87%...

[skinny] 07/4/2020 14:22

And so they should be! :-)

[skyship] 06/4/2020 14:07

Smile - certainly - a good day with 10% turns in propco SREI & housebuilder VTY...

[badtime] 06/4/2020 10:47

Just too say Sky that i am reading the posts...just in case you think you are talking to yourself ..smile

[skyship] 06/4/2020 09:15

The 10% rebound in the housebuilders is the story of the day thus far.

I see the bid is moving up slightly in the Inland Homes ZDPs; but can still be bought at 140p inc costs. That GRY of 9.49% may not be around for much longer, though in truth I'm surprised it has stayed available quite this long.

[skyship] 05/4/2020 17:31

15% bounce in MCKS - regrettably I didn't play it all the way - never do!

In the same REIT sector on Thurs/Fri I bought into SREI at average 31.9p. They too look oversold IMO. Pretty classy portfolio - certainly a little too much retail, but quality assets.

[skyship] 04/4/2020 14:45

VTY my preferred play in the housebuilding sector which is now at absurdly low levels. One has to recognise that HMG will be prioritising house buyers and housebuilders when we are the other side of this nightmare. IMO current valuations do not reflect the potential recovery in Q3.


free stock charts from uk.advfn.com

[skyship] 27/3/2020 15:09

I now hold a mini-portfolio of 3 Zero Dividend Prefs:

# Acorn Income ZDPs – 146p – Redeem at 167.2p on 28/02/2022 – GRY = 6.54%
# Inland Homes ZDPs – 137p – Redeem at 201.40p on 10/04/2024 – GRY = 9.85%
# NB Private Equity ZDPs – 113p – Redeem at 130.09p on 30/09/2022 – GRY = 5.77%

Average Gross Redemption Yield = 7.39%pa

[skyship] 26/3/2020 14:17

Of all the propcos MCKS was the last to wake up to what was going on elsewhere in the sector; then suddenly on 16/17 March it crashed 46%!

With no retail and a portfolio of class assets across the South East, it now looks rather cheap, especially if their sale of an office block in Central London proceeds as planned; and there looks to be no reason for it not to do so.



That sale will substantially reduce their LTV which is currently a little too high at 34%.

The spread is usually too high; but still at 158.5p I reckon there could be a c15%-20% bounce to play for...

[skyship] 24/3/2020 17:50

Alp - I assume bonds rank higher as usually secured. ZDPs like conventional prefs rank ahead of the equity.

redhill - AIF highly geared with those Zeros; however still masses of equity cover.

[redhill9] 24/3/2020 16:31

Thanks Skyship, I already have a bundle of INLZ which happy to hold to maturity but hadn't heard of AIFZ so will consider that too (along with so many apparent bargains around!)

[alphorn] 24/3/2020 14:26

Sky - thx. Will have a look. I know zero coupon bonds but have not heard of ZDPs. Are there any important differences that I need to aware of? They must rank higher than any other bonds on a liquidation I presume.

Note to self - may be tax free in CH?

[skyship] 24/3/2020 13:49

The source of this thread hales from Zero Dividend Prefs (ZDPs).

I've always backed a ZDP when I can find one providing an acceptable yield.

In the current disruption I have found two worthy of investigation, or in my case worth buying; and have done so.

Inland Homes ZDPs (INLZ) at 144.5p then a top-up today @ 137p for a GRY of 9.83%. Serious value there IMO.

Also bought a few Acorn Income ZDPs (AIFZ) @ 144.5p for a GRY of 7.84%. Redemption @ 167.2p on 28/02/22.

[skyship] 23/3/2020 14:15

One of the more interesting market comments:

[skyship] 20/3/2020 15:25

Bought back the few sold higher up in Inland Homes ZDPs (INLZ). Pd 144.5p, that = 145.3p gross inc costs. GRY = 8.38% to 201.40p on 10/04/24

Sleepy - sorry, those BBYB fell back to 96p; though now recovering to 99p...

[sleepy] 12/3/2020 21:56

Thanks Sky

[skyship] 12/3/2020 20:57

I expect anyone reading this is now holding a far higher cash balance than they were last month; and not intending to commit that cash anytime soon.

So, what should you do with that cash balance now that balances earn no interest.

Well, it’s been mentioned before, but at the moment the return available from the Balfour Beatty 10.75% pref (BBYB) is certainly attractive, even though it redeems at par on 1st July –ie in just 110 days.

The stats are as follows:

# BUY 10,000 shares at 102.02p. cost inc SD = £10,259
# On 1st July receive 100p + 5.375p dividend (in a tax free wrapper), ie £10,537
# Profit = £278, ie 2.71%....or 9.29% annualised

You will also have altruistically contributed £51 to the UK coffers for that SD!

Far better than just leaving the cash as a credit on your account; and viewing Balfour Beatty’s superb figures on Wednesday, perhaps a safer place for your cash…

[skyship] 11/3/2020 07:19

Nice trade - well done you. Always feels safe trading these REITs as presumably one doesn't mind holding them in any event!

I was trying to do likewise with AEWU, but YouInvest couldn't give me an online quote, then couldn't act on a limit either. Most annoying...

[gco1133a] 10/3/2020 21:40

bought some AEWU yesterday morning at 86, flipped them this afternoon at 91.5+ and reinvested most of the proceeds into RGL at 102.75 late this pm