Raven Prop P Discussion Threads

[owenski] 06/7/2019 09:19

I bought a few more recently @ just slightly over 9% yield, have held these for years as income, was hoping they would go lower, looks like that ship has sailed for now.

[montyhedge] 05/7/2019 23:50

Perhaps Woodford buying where else will he get nearly 9% paid every 13 weeks, lol.

[kenny] 05/7/2019 16:18

Thanks, looks like someone or some institution is taking out all the sellers.

[cwa1] 05/7/2019 13:47

Currently can sell 10,000 for 136.25p and buy same for 136p :-)

[my retirement fund] 05/7/2019 12:48

Looking strong assume Woodford has managed to either not sell or negotiate a sale at a good price

[igbertsponk] 05/7/2019 09:16

Inching back up. Seems we all timed our divi reinvestment well!

[kenny] 04/7/2019 21:17

Agreed - also the market should be able to absorb anyone who wishes to sell, especially at this yield.

[igbertsponk] 04/7/2019 20:16

Indeed: I got several hundred k of these when they were initially issued and they've been accumulating rather nicely and tax free ever since.

[horndean eagle] 04/7/2019 20:13

Buying at 120p doesn't help. they book an extra loss as the prefs are in the balance sheet at par.

[montyhedge] 04/7/2019 16:06

Good idea, compounding eighth wonder of the world according to Einstein.

[igbertsponk] 04/7/2019 13:30

Putin making appeasing noises about disarmament suggests relations with West will improve.

[igbertsponk] 04/7/2019 13:28

I've been adding: reinvesting the divis. Rude not to at this price!

[kenny] 04/7/2019 13:26

Whoever wants or needs to sell or buy, I think the important point is that the outlook for RAVP is probably better than it has looked any time since sanctions started being imposed in 2014. However, the share price is where it was in 2014; following the first round of sanctions.

Strange as it may sound, sanctions have been good for Russia, forcing it to look at developing industries other than oil and gas e.g. agriculture.

Perhaps the biggest problem is that there are lots of private investors holding RAVP. Most of we individual investors don’t seem to have the fortitude to hold long term and accumulate for the longer term when the share price is low. We need immediate gratification rather than delayed gratification!

The company’s actions in buying back 17.7% of the ordinaries at 36p is one of those deals that rarely, if ever, present themselves. Apart from the buyback price, consider how much it reduces the cost of future buyback “dividendsR21; on the ordinaries.

Lots of lovely coupon payments on RAVP to look forward to not just this year or next, but long into the future.

[cc2014] 04/7/2019 12:42

It would have made more sense to buy back the prefs/convertibles instead of the ordiniaries and cut the debt. IMHO.

But maybe that's telling us something about which holdings Woodford is being forced to sell and which ones he's trying to hold onto.

[bench2] 04/7/2019 12:17

It would make sense for the RAV board to buy in and cancel some of the Woodford/ Invesco holding in RAVP at circa 120p ( 10% yield ) to rebalance the ratio of pref / debt / ords following the buy back of equity at 36p .

[montyhedge] 02/7/2019 19:31

Reinvestment going on from the dividend. Compounding eight wonder of the world according to Einstein.

[kenny] 02/7/2019 13:18

Horndean Eagle - to address your concerns in your post 192 above, I recommend you read a post on the RAV board, post 49, by erstwhile2, today.

It is a good summary of the company's financial position after the proposed buyback, which I would recommend that all RAVP holders may care to read.

Incidentally, I am not a holder of the ordinaries because the share buybacks mean the effective yield, after deducting the return of capital, is under 2% and the ordinaries would be the first to suffer if anything goes wrong.

[kenny] 02/7/2019 10:06

Now that Woodford has become more realistic and admits they will have to/wish to retain illiquid stocks, I can see that the fund may actually return from suspension.

Monty - I would tend to agree with your statement.

[hindsight] 02/7/2019 10:04

Reduces cover for us though, so risk increased

[igbertsponk] 02/7/2019 09:27

I see that Raven are buying in all the Woodford ordinary shares. And then having to buy some of the Invesco ones so that they don't go over 30%.Annoying that a steady long term holder is having to sell. But great news for NAV per share.

[montyhedge] 02/7/2019 08:12

I can't see his suspended fund coming back for 7 months.

[kenny] 01/7/2019 21:36

In this afternoon's statement on the Woodford website, I note the following sentence which may be of interest:

"The portfolio will continue to be focused on undervalued companies, but the majority of them will be FTSE 100 and FTSE 250 index constituents."

So the majority of holdings will be FT100/FT250, which means that a minority e.g. up to 49%, will not.

I interpret this as realistic. Most of the unquoted stuff may not be saleable for a long time. Also gives him wriggle room to retain RAVC and RAVP because they are producing income which he needs, not least to meet his fees.

Later in the statement it includes the following, which is further confirmation that there still will be illiquid holdings:

"The suspension will be lifted when the fund’s repositioning is complete, with less exposure to illiquid stocks."

[horndean eagle] 01/7/2019 16:47

Unfortunately buyback increases gearing and so its bad news for the prefs and convertibles. Have to hope they don't go down a similar route for Wooodfords prefs and convertibles. They could really do with stopping buybacks on the ords for a couple of periods in order to replenish cover. Doubt they will though. The terms on the convertibles were not at all generous so they may need to do something there to persuade holders to convert into equity.

[kenny] 01/7/2019 16:11

Holts - I agree that is makes sense for him to hang on to RAVC and RAVP. They may be non-FT250 or FT100 holdings but they produce the income he initially promised to his "Income Fund" investors.

A bit up in the air whether he is forced to do a total wind up or he gets replaced as manager of his two funds. I think those are the two alternatives - his plan to reopen once he has sold all the illiquid holdings is, in my view, not based upon the reality of the situation.

Whatever transpires, this could all drag on for a very long time, so in the interim, I wonder if the FCA can find grounds to revoke his licence, forcing him to, more or less immediately upon that event occurring, hand over management.

[catsick] 01/7/2019 15:57

My guess on the ravc is there will be a load of arm twisting to do a new bond deal which can fund retirement of the existing bonds ... but will really just be a bunch of expense that is not needed