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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Media And Income Trust Plc | MEI | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
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|---|---|---|---|---|
| 0.00 | 0.00% | 0.01 | 00:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 0.01 | 0.01 |
| Top Posts |
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Posted at 21/3/2002 10:07 by redsonning bpoole - Thank you for your kind words! By now I guess you understand the risks you are contemplating. I wouldn't like to influence you on this, except to say that your thinking has some logic to it.... if indeed the NAVs are going to turn up more significantly. Since there are so many cross holdings it is possible that once we get some upward movement that this will feed itself around the sector in much the same way that the downward spiral has done, and to this extent the small upward movement in MEI over yesterday and today may have more impact than might appear on the face of it.My own feeling on this is that the downward spiral has been overdone in terms of its punishment of the splits (even of those with heavy cross holdings). However you can't argue with the market! It is the market which determines the NAVs for these trusts. But getting the situation back to some sort of normality is not so easy. Your mention of the dividend situation is very important. This is crucial to getting some sense of value back into the market. The cuts result from a combination of adverse circumstances, including cuts in other trusts feeding around, breaching of bank covenants, and the companies act test (section 265) which many of those dividend cutters are now failing. The next problem will be that if they continue to accrue income which they can't pay out (because of the companies act test) then they may be in danger of losing their investment trust status too if they haven't paid out at least 85% of their income in dividends.... which is required for them to maintain their status. Complex.... but if you can jump in at the right moment.... |
Posted at 21/3/2002 09:22 by bpoole I am thinking of buying back in. I have been looking at the NAV of a lot of splits and they seem to have bottomed and are on the way up. Some are up to 45% discount to NAV. If only Aberdeen stopped announcing dividend suspensions they might recover. PS: Did they suspend MEI dividends or cancel them? redsonning :- I would also like to thank you for your informative postings. |
Posted at 02/3/2002 12:35 by redsonning Hallo rk23 - Glad to see you are still up and working - in that case there is hope. I will be doing some more work on this one as details emerge. But briefly, I would expect to see at least another £30m of debt be paid back in the not too distant future (but it could be more). This might leave a trust of some £50-60m in size for the time being (but it could be less). At this stage there are a few too many variables to say what the dividends might be, but given that the Prefs, after expenses and loan interest are paid, are entitled to around 8p per share before the Ords get anything, there won't be a lot left. However, there may be something. Given that you are currently unlikely to obtain more than 1p for your shares I would suggest waiting at least a little. There is at the possiblity of some volatility in the price as other speculators try to trade the stock too, and try to guess what the potential dividend level might be. This might give you an opportunity to get out in somewhat better shape.Don't panic on Monday morning! |
Posted at 01/3/2002 21:39 by rk23 Hi everybody, on Wednesday I bought 75,000 MEI ORD shares at 2.5p, I normally buy and sell within 2-3 day, cashing in on small profits, I bought without doing any research as the shares had fallen by a large percentage, Can somebody please give me some information as to whether there are ant dividnets payment to come, and is it likely that the shares will go up, are they worth holding on to, does any one have a realistic idea what the price may be with end of march, or april and finally does any one think that Ive madea huge mistake purchasing these shares, all views and comments welcomed, Thank |
Posted at 28/2/2002 12:39 by redsonning jm - Thank you for your enquiry!GIC got itself in trouble some months ago due to falling asset values. GIC is a rather important trust within the sector because it is both large, and very has a very long life (until 2018). The board have been trying to put together a refinancing for some time, and are supposedly on the verge of doing so (they had indicated around end of Feb for further news of the deal. Difficulties have revolved around the subsidiary nature of the Zeros, but these difficulties are not necessarily insurmountable, and since this is such an important trust I would expect to see support for this reconstruction from the other institutions. Neither the Incs or the Ords have any asset value at present, but both are entitled to dividends. It is not of course clear at this stage what level of dividends might get paid once the refinancing is in place, and whether that level will be enough to support the present price at which each class of share is trading. At present therefore still very much a gamble. Personally I’m not touching them until I see the refinancing terms. GMM is a different problem. It is not primarily an investor in other trusts (although it has some), but holds a portfolio of blue chips. It has some £200m of assets, but the zeros have the right to get their cash in April this year, and if all the zeros want their cash back the trust will have to find over £110m. Since it also has bank loans of some £72.5m this will mean that some of the bank loans would then have to be repaid in order to keep the bank covenants in check. GMM have offered the zeros the chance to stay in for a further two years instead of cashing, but the terms are not exceedingly attractive, and therefore it remains to be seen just how many zeros get pulled out. Depending on how many want cash, so the size of the trust will adjust itself. The difference in potential (post zero decision) size is a very large range indeed, and again this therefore leaves the dividend situation extremely unclear at this stage. The Ords do however have some asset value (recently around 17-18 pence) and therefore some people are betting on a favourable conclusion, given that they also have a little comfort from the assets. As a result the Ords have climbed a little from their low over the last couple of days, with quite a volume of purchasing. However as you can see the spread is huge, and therefore there is no prospect of trading in and out of this stock. Anyone purchasing is doing so on the prospect of the trust remaining of a reasonable size and getting a reasonable dividend. This of course is also something of a gamble, although once again this is an important trust for the institutions, and therefore one would expect them to be working hard in the background to hold this thing together. However, if I was a zero holder (which I’m not) I would be wanting my money back in April and I think there will be quite a high level of redemptions. Therefore so far as I am concerned there is no rush to purchase. |
Posted at 05/12/2001 10:34 by redsonning I suspect you won't see much reaction in MEI. As you said before the MEI price is mostly driven by trades at present. The underlying asset values have not improved to any great extent, and the bank debt is huge. The big question for MEI is what happens to the next divi - announcement on the divi should normally be due towards the end of this month. |
Posted at 27/11/2001 18:00 by novision For those who can't be bothered - here's a summary - prices are today's not necessarily what MEI dealt at.MEI Sold 3,370,000 INVESTEC EUROPEAN GROWTH AND INCOME TRUST LIMITED @80p Sold 1,550,000 NEW FULCRUM INVESTMENT TRUST PLC @ 61p Sold 1,000,000 Pavilion Geared Recovery Trust PLC @ 81p Bought 2,000,000 US Growth & Income Fund Ltd @ 63p So more selling than buying. ----------- redsonning - you seem to know quite a bit about this, so here's a question for you - as I know nothing about the technicalities of ITs. (From the banking RNS on 31/10) MEI has agreed with its bankers an extension to its banking arrangements whereby cash balances may be deducted when calculating qualifying assets and total borrowings. This arrangement, which assists the Company in complying with its banking covenants by managing its liquidity, has been agreed to apply until 17 December 2001 and as at 30 October 2001, the ratio of bank indebtedness to total qualifying assets amounted to 56.75 per cent. against a maximum permissible level of 61 per cent. As at 30 October 2001, cash represented approximately 23.7 per cent. of total assets. So using rough & ready approx figures: Total Assets 100% of which cash is 23% so Investments 77% Bank Debt 57% of Total Assets(Maximum permitted 61% - excl.cash) Bank debt % of Investments 57/77 = 74% = the problem and why cash is being added back for the moment. So the Investments need to grow by a minimum 21% to approx 93% to maintain the 61% limit. Pref NAV was 9.88p on 31/10, the week before it was 36.21p. So 20% on 36.21p would imply a NAV target of say 44p - last notified NAV was around 69p So firstly, is my understanding of the problem you perceive correct? ... and secondly is the NAV target an appropriate monitoring tool or is there some other measure which is more useful? ...and thirdly I presume the remedy for the bank is to ask MEI for its money back which means MEI has to sell investments, etc until there is a much smaller pot left and lower divs etc ..... N (apologies for the length of this post, and if I'm boring you all, and for any error in the maths) |
Posted at 15/11/2001 15:19 by bpoole NovisionThere are several of these bombed out Investment trusts that are paying stupid dividends. Take Jersey Pheonix, even at 55p they are yielding 16.3%. They have just announced a dividend payment thus. RNS Number:1222N Jersey Phoenix Trust Ld 14 November 2001 The Board of Jersey Phoenix Trust Limited today declares the payment of the first interim dividend for the year ended 30 June 2002 of 2.25p per share payable on 28 December 2001 to shareholders on the register at 23 November 2001. For those shareholders who have elected to receive their dividends in Ordinary shares the basis of allocation will be announced during the week commencing 10 December 2001. In the absence of unforeseen circumstances the Board expects to pay two further interim dividends of 2.25p each and a final dividend of not less than 2.25p in respect of the year ended 30 June 2002. The Board also announces its intention to empower the Company to buy back its own Ordinary shares and Zero Dividend Preference shares and it is hoped that the Company will have received the necessary shareholder consents by 31 December 2001. |
Posted at 07/11/2001 10:58 by bpoole I sent an e-mail to Aberdeen AM. I thought yougood people would like to see it. Dear Sir/Madam, Would you please give me an update on the funds situation. Will the next dividend be paid? What are the options? If the fund is merged with another fund how will it affect the shareholders. How did it affect the St David fund? Did they continue to get dividends paid? Regards, Thank you for your recent email. The Media and Income Trust has not yet announced when its next dividend will be paid. It will be paid in January, but has not yet gone ex-dividend. The previous dividend was paid by the Company on 19 October 2001. This trust pays dividends quarterly. There has been no announcement to suggest that the Board and Directors of this trust are considering a merger with another Investment Trust. If this was to be considered, the shareholders would be informed and asked to vote on the proposal. St David's shareholders continued to get their dividend paid, at a reduced rate. The results of the implementation of these proposals was recorded in an announcement on 10 October 2001: St. David's Investment Trust plc ("the Company") announces that all resolutions proposed at the Separate General Meetings and Extraordinary General Meeting held earlier today have been duly passed. The Board is pleased to announce that the Company has raised approximately £33 million after expenses as a result of the Placing and Open Offer of preferred annuity shares of 1p each ("Preferred Annuity Shares") and the Placing of further Preferred Annuity Shares and zero dividend preference shares 2008 of 1p each ("2008 Zeros"). Based on the Company's total assets as at 9 October 2001 and the net new funds raised, the Company will have total assets of approximately £159 million after the expected adjustment to the Company's bank loans These changes will result in: - A net asset value for the Ordinary Shares of approximately 6p, - Greater protection from a breach of banking covenants in that total assets would have to fall by more than 21 per cent. from today's figures before breaching the loan to value covenants, - Tangible improvements in the cover of both the 2003 and 2007 (now to become 2008) zeros. Kind regards Suzanne Taylor Customer Enquiries Adviser PLEASE NOTE, they say the dividend WILL be payed in January |
Posted at 26/10/2001 23:11 by novision Freddie - I think this is what Brian's on about The bit on dividends is below. The 9p is mainly historic there is only 2.25p promised to come at the moment. If it stays afloat and does the same next year .... well, I bought a few as a punt...DIVIDENDS AND DIVIDEND FORECASTS The policy of the Company is to distribute substantially all of its net revenue after taxation by way of quarterly interim dividends payable in January, April, July and October each year. Ordinary Shares In respect of the current financial year ending 30 November 2001, the Directors confirm the existing dividend forecasts for the Ordinary Shares as follows: Dividend Net dividend Expected Expected per share ex-dividend date payment date Second interim (Existing 2.25p 23 May 2001 19 July 2001 Ordinary Shares only) Third interim 2.25p 12 September 19 October 2001 2001 Fourth interim 2.25p 27 December 2001 18 January 2002 Taken together with the first interim dividend of 2.25p per share paid in April 2001, the forecasts amount to 9p per Existing Ordinary Share for the current financial year. The first dividend payable on the New Ordinary Shares is the third interim dividend and they will not rank for the second interim dividend. |
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