Raven Prop P Discussion Threads

[gfrae] 15/5/2020 12:51

And online shopping booming, therefore warehouses should be in demand.

[kenny] 15/5/2020 11:38

Ruble is trading below 90 to a pound today, for the first time in some months. Whether this continues is hard to figure as it has been trading at 93-94 for some months.

[igbertsponk] 14/5/2020 11:28

Not quite the 3p ex divi drop today.

[rayg3] 13/5/2020 17:32

Indeed. Thanks for pointing that out. One can only hope the dealing spread is accommodating but with RAVP it usually isn't.

[eeza] 13/5/2020 17:27

This stock doesn't always drop by the full div amount. And quite often doesn't drop at all.

[rayg3] 13/5/2020 17:16

It's possible the bid may be depressed early by divi hunters tomorrow so it might be worth letting it settle down somewhat. That's aside from the obvious 3p drop when the stock goes ex-dividend.

[rayg3] 13/5/2020 16:55

Thanks fellas. I have never used this divi capture strategy. But I do want to deploy the capital by selling tomorrow. Thanks for confirming my understanding that even when selling tomorrow the divi will be paid out.

Did anyone notice that the ask rose a touch in the last five minutes of trading? MMs never miss a trick, do they?! It was 118.8 ask before 16:25 but rose to 120 and a few seconds later fell to 119.5. I guess a few investors were buying at the last minute. Note to self... make sure to buy earlier in the day in future!

[johnroger] 13/5/2020 16:44

The ex-dividend date of a stock is the day on which the stock begins trading without the subsequent dividend value. Investors who purchased the stock before the ex-dividend date are entitled to the next dividend payment while those who purchased the stock on the ex-dividend date, or after, are not.

[eeza] 13/5/2020 16:43

Effectively you are entitled to the Div as of 1631 hrs today. If you sell first thing tomorrow you will still get the div.

[cwa1] 13/5/2020 16:37

You get the dividend if you hold tomorrow, you can sell tomorrow any time after open and are entitled to the dividend.

[rayg5] 13/5/2020 16:31

If sold tomorrow it will be ex div. Or do they need to be held on the record date?

[rayg5] 13/5/2020 16:31

If sold tomorrow it will be ex div. Or do they need to be held on the record date?

[johnroger] 13/5/2020 15:19

Ex-div tomorrow

[kenny] 06/5/2020 14:16

From a few days ago:

"The Bank of Russia cuts the key rate by 50 bp to 5.50% p.a"

[kenny] 06/5/2020 14:07

All good points made above and certainly my interpretation may prove to be incorrect. I just think, that at this time the company should be cautious.

[gfrae] 06/5/2020 10:45

Gary, that was my understanding when I read the document, I could be wrong, would have to reread to check.

[zangdook] 06/5/2020 10:35

That makes sense. If they bought Invesco's holdings it would leave a bothersome rump of convertibles - they may as well wipe them all up and simplify things.

[gary1966] 06/5/2020 10:13

gfrae,

Just a thought. Are they really going to save £40m of cash as surely they will still buy out the whole holding of ords and prefs and that number will increase with converting the convertibles.

[gfrae] 06/5/2020 10:05

Kenny, havn't they already addressed the buy in issue ?....They reiterated that they were bound to buy in Invesco's holding of the Prefs and Ords at a later date than previously agreed, but were now not going to buy in the Convertibles saving £40m of cash.
I see and understand the logic of buying the Convs from the point of view of the company as a whole and for the Pref and Ord shareholders (and I also hold the ords)and I am not against the conversion on principal,but only on the terms that have been offered which do not seem fair.
From their recent update; as provider of warehouse they might be in a good position as Russia increasingly internet delivery and more storage space will be required as shown by recent lettings. In fact current conditions keep competitors out of the market.
The buy back at these levels should still be in the interests of the company and shareholders.

[cwa1] 06/5/2020 07:36

As expected but reassuring to see nonetheless:-

6 May 2020

Raven Property Group Limited ("Raven" or the "Company")

Preference Share Dividend (RAVP)

The Directors of the Company confirm that the quarterly payment of the preference dividend in respect of the preference shares of 1p each with ticker RAVP (the "Preference Shares") will be made, in accordance with their terms, on 30 June 2020 in respect of the period from 31 March 2020 to (but excluding) 30 June 2020. The record date for the payment of the preference dividend for the Preference Shares is 15 May 2020 with an ex-dividend date of 14 May 2020.

The Preference Shares will be entitled to a gross dividend of 3 pence per Preference Share.

A scrip dividend alternative (to be settled in Preference Shares) will also be available for all preference shareholders in respect of the preference dividend.

[kenny] 01/5/2020 12:33

I would suggest that the thinking on the conversion offer is as follows.

Although the buy-in of all of Invesco’s holdings is, officially, deferred until 31 July 2020, I think the parties and the market realizes that in reality it is not going to proceed, baring a miracle vaccine for Covid-19 appearing in very short order.

At this time and for the foreseeable future, it would be imprudent for the company to use a combination of its cash plus remortgage some of its portfolio to use a total of £135m to buy in Invesco. This is no time to be spending any cash on a buyback of shares.

Therefore, the current conversion offer for the convertibles, is a sensible alternative because it cleans up the balance sheet – leaving permanent capital comprising the ordinary and a single class of permanent preference shares.

I think perhaps that Invesco and others have been convinced that it is a sensible alternative for them as well; because it removes the redemption burden in 2026 leaving the two remaining classes of the company as permanent capital.

It allows the whole company to be reanalyzed and I think Invesco and others believe that a reassessment of the company will benefit the ordinaries and preference they receive, more than the loss on the convertibles they surrender in exchange. Quilter is agreeable, I imagine, because it is not suffering a loss because it bought its convertibles at a good price from Woodford, as did other institutional investors who may see the long-term benefits of a clean balance sheet upon what they receive in exchange.

In short, that by 2026 what they receive on the conversion, will likely be equal in value, or exceed, what they would have received upon a 2026 redemption.

[gfrae] 01/5/2020 10:00

The fact that they are no longer going to be spending £40 million buying in Invescos convertibles may be a factor.

[hindsight] 01/5/2020 09:19

As a holder of both I will not be voting for it on the present terms. But biggest concern is not the deal but the lack of a credible explanation for doing it. I suspect the convertibles kept them focussed on not rolling the dice on a decent balance sheet, where as with only undated equity / prefs they can

[my retirement fund] 01/5/2020 08:18

0.8 in prefs 0.2 in ords plus a 10 year convertible warrants at 25p may do it.

[my retirement fund] 01/5/2020 08:14

Come back again? They need to sweeten the deal then to something more sensible!