Merchants Share Discussion Threads

[gateside] 01/10/2020 17:16

A better day here. If the market turns up, then I reckon the dividend should be safe long term.

[zac0_4] 30/9/2020 22:38

tim3 - thanks for link

[gateside] 30/9/2020 20:25

Thanks for highlighting the podcast. It would have helped if Simon Gergel was a bit further away from the microphone, but still listenable.Personally I can see MRCH very gradually recovering, as long as they don't have to cut their dividend.

[tim 3] 30/9/2020 20:05

This may help a good chart because you can easily change to with reinvestment and without and compare with index ect.

[zac0_4] 30/9/2020 18:31

The latest fund manager update (podcast) is now on the MRCH website. hxxps://www.merchantstrust.co.uk/Overview - it's about half way down the page. Not all doom and gloom, although I wouldn't expect him to paint that picture anyway. Maybe of interest to some.

[zac0_4] 30/9/2020 18:12

SS - the figures on the MRCH website are a little confusing. The 5 year performance is dated 28.08.15 to 28.08.20 and, as you say, clearly shows a share price return of 2.9%. If I look at data taken from the HL website the share price return for the same period is -19%.

Further investigation states a caveat that: "percentage growth, total return . . ." on that basis I suspect the 2.9% return over 5 years includes dividends.

[superiorshares] 30/9/2020 17:31

Zac0_4
Was doing a lot more research into both MRCH and HHI today.
Merchant website is stating 5 year total return 2.9 per cent
Interesting little bit on HHI . They have a piece with 4 different investment scenarios . You should take a look at that .
Folks I have only been buying shares and shorting since 1997.
Both HHI and MRCH will have to cut their dividend. Although if it remains . It will be one of those . £10,000 invested yielding 10 per cent . Pays £ 1000 pound a year at the end of 10 years you have no capital left :-).
Compounding works both ways and within 24 months your losses will compound big time
Regards All

[chc15] 30/9/2020 15:30

Half year report out, dismal performance figures, divi up.

[zac0_4] 30/9/2020 12:13

Yes. Terry's been telling us for years never to invest for income. Simply invest for capital growth and take income from your capital. Did I listen? Not fully! Am I convinced now? Absolutely!!

[chc15] 30/9/2020 11:51

Yep i have fundsmith, Terry smith has been right about the wrongs of value investing!

[zac0_4] 30/9/2020 11:07

CHC15 - I guess it depends on the manager. There's good and bad. I'm more than happy with the performance I've enjoyed from Nick Train, Lindsell Train Global Equity, Terry Smith, Fundsmith Equity, James Thompson, Rathbone Global Opps S and, latterly, Stephen Yiu of Blue Whale. In terms of tracker type funds, I hold 1 general, L&G Int Index, and 3 sector focussed funds, L&G Tech Index, L&G Global Health and Pharma, and L&G Global Infrastructure. Like you I sit and wait for the promised turnaround in value type stocks. I've been waiting a while now!!

[tim 3] 30/9/2020 11:07

Read an interesting quote about value investing last week it basically said (when value investing)you are betting that you understand the outlook for a share better than the market and in time you will be proved right and the market wrong.

Like most one liners about the market there is more to it ie trends ect but it did make me think.

Its strange if you look at returns on savings then value stocks should be flying but they are not.

However looking at the outlook the whole world has gone tech mad and this is almost totally absent in the ftse and mrch.

[chc15] 30/9/2020 10:34

I keep hearing value will come back and the uk, but nothing has changed. I hope it does, I have lots of uk, value funds that need to recover, and am topping up here and there..active mgmt is meant to be the difference, but it has failed.

[topvest] 30/9/2020 10:16

The UK is very oversold at the moment due to a combination of factors: Brexit, tech bubble in the US and value avoidance. It seems to me that its probably a good time to buy UK equity income in the run up to 2021. Long term thinking.

[essentialinvestor] 30/9/2020 09:27

Arguably the Manager has been given an easy ride by the BOD,
time for some detailed questioning on investment process imv.

[zac0_4] 30/9/2020 09:25

CHC15 - totally agree. My holding here is down 28% over the last 12 months, and that includes dividends! My holding in Legal & General International Index Trust is up 6.5%. The same trend applies pretty much to all my dividend paying holdings ie down, and all my global equity funds, ie up.

[chc15] 29/9/2020 23:17

Indeed, never go for income. If I could go back in time, I'd just buy one global tracker fund, add to it each year, and leave it alone. Less stress and much better returns.

[tim 3] 29/9/2020 22:23

Respect that and along with its dividend record its why I bought but past performance..... and with 2 of the top 3 holdings being tobacco, I do worry.

[panshanger1] 29/9/2020 21:55

The Merchants trust -Established in 1889 Relax

[tim 3] 29/9/2020 20:10

This looks so weak looks even weaker than the the FTSE and that looks pretty pathetic compared with other markets not confident at all .

[gateside] 29/9/2020 20:08

Interim results are due in September according to their website, but no sign of them being published so far.Bit concerning!

[north sea boy] 29/9/2020 19:58

Also, am I correct in thinking that they are now quite a few days late in declaring the next quarter dividend, due for payment November? Last year this was declared 17/9 for EXD on 3/10?

Should we be concerned?

NSB

[gateside] 29/9/2020 18:21

Up less than the market yesterday!Down more than the market today!Lured here by the large dividend, which was a mistake on my part. I also prefer Investment Trusts that have a greater international exposure. You live and learn!

[zac0_4] 29/9/2020 18:20

That was weeks ago. Same exercise today. £10,000 invested on 29.09.15 bought you 2,415 shares. Re-invest annual dividend 1 year later and it bought you an additional 137 shares. Year 2 126 shares, year 3 131 shares, year 4 148 shares and year 5 (today) 239 shares. So you now hold 3,196 shares at £3.40 (ish) so £10,855.

[superiorshares] 29/9/2020 16:56

zac0_4
As someone else commented on HHI . best stick to the right thread .
Hit me with your calculation again please
You put 10,000 in 5 years ago when ?.. Which is now worth 10,900 ?