Raven Prop P Discussion Threads

[kenny] 08/9/2019 09:34

"The Bank of Russia cuts the key rate by 25 bp to 7.00% per annum"

[otemple3] 06/9/2019 15:35

Hi KennyThey came back and said there was no movement from their view that declaration must be made before the ex date. I have therefore asked to transfer to certificate as this is my only holding at Barclays and have held and intend to hold for years so just paying them to do nothing really. Thanks to both you and CWA for responses and apologies to others for slight off topic. Have a great weekend all

[kenny] 05/9/2019 21:50

The company's website now shows the post-Woodford material holders of RAVP.

Cannot confirm for certain as I am on holiday outside UK and do not have full access to my research files. However, it looks like we have at least 3 new institutional holders - Axa, UBS and Weiss. Another holder - CQS - has increased their holding materially.

Also interesting to see we have 'related parties' who have bought a material percentage albeit we are not told who they are.

Looks very positive but everyone should DYOR and make their own judgements.

[kenny] 05/9/2019 20:56

My family do still have some accounts at Barclays but most have moved away, mainly to Hargreaves Lansdown. These days, not many brokers offer to implement scrips - and HL do not.

For the scrip, the family have mainly moved to holding most shares in certificate form - also means the holdings are not aggregated for disclosure purposes.

I would recommend holding in certificate form as this means a holder can decide on how many shares to elect for the scrip and how many for the cash dividend.

Only disadvantage with certificate holdings is that if you want to sell, you firstly have to transfer back into a broker account. This is not an issue if you are a long term holder for income and can afford to ignore price volitility - many holders cannot seem to do this.

Nothing in this post should be construed as advice.

[otemple3] 05/9/2019 15:22

Thanks Kenny. Tbf the woman I spoke to eventually understood that their approach is more than a little odd given the published timelines! She has taken them down and has asked the question so will wait and see.Do you still use Barclays or did you find someone better who offered the scrip option?

[kenny] 05/9/2019 14:25

I have used Barclays in the past and they told me the same. When I told them the scrip price is not even announced until a week after the cash ex-div date and that the scrip has it's own ex-scrip date, they changed their minds and allowed me to take the scrip, albeit only on all of my holding.

Look up the ex-scrip date and quote that to Barclays. You may have to be determined as they have an arrogance at Barclays which can be summarised as - we know everything and the customer is ignorant and knows nothing. The stories I could tell you about Barclays errors...….

Hope that helps.

[cwa1] 05/9/2019 13:59

Cheers, good luck with it!

[otemple3] 05/9/2019 13:56

Thanks for the response CWA, appreciate it. Barclays tbf are looking into it and will give me a call back but of the brokers I use, I would have to agree they are the worst.

[cwa1] 05/9/2019 13:12

Hi otemple3

First of all it is a scrip issue rather than a script one!

Secondly, IMO, I reckon they are probably correct to say that you would need to opt in before XD day to ensure that you can take the scrip option for technical/record reasons. And this comes from someone who thinks Barclays are the amongst the worst brokers out there, so have no bias towards them.

[otemple3] 05/9/2019 12:41

I use Barclays as they are one of the few who allow the script option. I have just phoned up to change my preference (with the deadline of 5pm tomorrow) and been told that I would have had to have notified before the ex div date. Seems crazy as script price isn't announced at this point and forms of election are not sent out till the following week. Has anyone else experienced this?

[martincc] 04/9/2019 08:54

130.75p to buy at the moment

[kenny] 04/9/2019 07:08

I have no idea of the size of the overhang or how long it will take to clear but it is obvious that there is an overhang.

[montyhedge] 03/9/2019 14:28

Yes size of overhang.

[eeza] 30/8/2019 13:41

Monty was asking the size of the overhang (number of shares), I think.

[kenny] 30/8/2019 12:05

The Woodford overhang arises because some of the institutions that bought Woodford's holding, only bought to flip part or all of their RAVP for a quick profit. Seems to be standard practice when they buy below market price.

[montyhedge] 30/8/2019 11:44

Kenny whats the Woodford overhang thats left ?

[kenny] 30/8/2019 11:30

I have been reviewing the latest Edison report issued on 28 August.

Of particular interest to me are the forecasts for 2020 and 2021 - see the bottom of page 5 for the figures and the top of page 6 for the assumptions used. Also see page 8 for the forecast results in IFRS format.

Basically, it indicates that the coupon on the preference is secure even though they project that the high 'dividends' of 3p per annum will continue to be paid on the ordinaires, albeit that cost is mitigated by the fact there are now 14.8% less ordinaries in issue.

Overall, it appears to me that given the conservative nature of the assumptions used in the forecasts, I can almost go to sleep(!) for the next two and a half years - at a minimum - and just keep collecting the quarterly dividends. Really worth looking at the conservative nature of the assumptions made and coming to your own conclusions.

Please DYOR and note this is not a recommendation, not least because RAVP is really only for very long term money. In any event, there is currently an overhang of ex-Woodford shares which could take some time to be absorbed by buyers.

[bench2] 27/8/2019 14:26

You can buy the pref at just under 132p today (ex 3p qtly div payable 30 Sept) , a flat yield of 9% after comm .

[montyhedge] 27/8/2019 08:51

Woodford must be in trouble if sold his jewel in the crown the 12% pref.

[cwa1] 27/8/2019 08:11

Morning

Just had a glance at this morning's RAV results and one of the bits that jumped out was this paragraph...

There has also been a significant change in our shareholder register following the well publicised events at Woodford Investment Management ("WIM"). The opportunity to purchase the WIM ordinary shares for cancellation at a significant discount to net asset value was too good to miss and on a proforma basis, would result in a further 5p increase in net asset value per share. It is disappointing to see one of our longest standing supporters withdraw but life goes on. The WIM holding of convertible and irredeemable preference shares were placed with over 35 institutions.

Excellent to see them placed and nicely widespread too.

[igbertsponk] 27/8/2019 07:58

The Woodford holdings in Prefs and Convertibles still showing on the Raven website. Both shown as at 30th June. Not too many Prefs (8%) but 42% of the Convertibles.

[zangdook] 27/8/2019 07:50

thanks, I must have skipped that bit. I suppose you don't have to declare changes in holdings of prefs as they don't carry voting rights? I wonder if that's a backdoor for building a quiet stake in a company by acquiring convertibles.

[igbertsponk] 27/8/2019 07:34

Not so. Woodford seems to be out totally:"The WIM holding of convertible and irredeemable preference shares were placed with over 35 institutions."

[zangdook] 27/8/2019 07:30

I don't know why they say he's no longer a stakeholder, he still has gazillions of prefs and convertible prefs.