Raven Prop P Discussion Threads

[igbertsponk] 07/10/2020 11:10

Drop due to continued Invesco messing I suspect.

[lucy_locket2] 07/10/2020 11:05

New to this thread and dont post often on ADVFN. Just bought a few of these due to the great yield but notice that the price is falling back ?. Anyone know the reason for that, anything to do with this RAVC exchange thing thats been going on or something else ?. Any info would be much appreciated.

Thanks In advance

LL

[kenny] 02/10/2020 10:33

I think the company and others quote the yield on the ordinaries incorrectly because they just take the total dividend paid and divide it by the total number of shares in issue to arrive at the dividend per share. That may be how the company chooses to present the distribution but this is not an ordinary dividend but a buyback which the company touts as a dividend.

However, what the individual shareholder is receiving is two elements, a) a return of capital equal to ruling market price and b) a "dividend" of the excess.

Last time I worked it out the yield or return from the ordinaries - for a shareholder - is under 2%. Therefore, I have never found the ordinaries attractive as an investment. They might trade well below NAV but maybe that is warranted in view of the volatile ruble.

[igbertsponk] 02/10/2020 09:52

I sold a very few Ords i'd got from the Convertibles yesterday.
Was able to add some Prefs today at 122p.
Has been a nice way to add some Prefs just slightly cheaper.

[zangdook] 02/10/2020 09:25

Hm. The deal is supposed to be that although we end up with less shares, the shares in issue reduce proportionately so we have the same interest in the company. If some people don't tender, we end up just selling our shares. Over-allocation guarded against that. Sure we can buy them back cheaper but then we get less cash out of it than the 2.25p we were promised.

I suppose if you think of it as a regular dividend with scrip option, it more or less works out the same, and because my average is a touch over 36p I don't even get any tax liability.

[montyhedge] 02/10/2020 09:06

The Share Centre payment straight away, they are good and cheap.

[stun12] 01/10/2020 16:40

AJB too, though my cash balance is a bit borked. A work in progress, no doubt.

[tradertrev] 01/10/2020 16:22

HL has now credited the RAV and RAVP

[stun12] 01/10/2020 15:35

Now have RAV as well as RAVC, but no RAVP. Getting there, I guess.

Looks like those people converted are selling both. I was just intending on letting the common go at some stage, though possibly not at these levels. May buy a bit extra of RAVP just to round up the number of shares as it's offending my OCD.

[igbertsponk] 01/10/2020 10:34

Were in my Charles Stanley account yesterday. But not yet able to sell the Ords.

[tradertrev] 01/10/2020 09:23

Not at HL yet

[stun12] 01/10/2020 09:05

Any RAVC holders got their new share allocations in their accounts yet? Nothing at AJ Bell so far...

[tradertrev] 29/9/2020 15:11

I tendered mine and bought them back at just over 31p. Seemed rude not to.

[kenny] 29/9/2020 14:51

Note that todays news of the result of the tender offer indicates that 5.1m fewer ordinary shares were repurchased than the maximum possible. As this tender had no over allocation, it saves the company a capital outlay of £1.8m.

It would be interesting to learn who has not tendered on about 82.7m shares albeit that total probably includes, at least, some small shareholders who did not bother. Not immediately obvious from the list of major holders who has not tendered on a large block of shares but I suspect Invesco tendered on their holding.

[igbertsponk] 28/9/2020 09:17

I managed to get quite a few RAVC which will now convert nicely into mostly RAVP but with a few RAV Ords. I see the other thread has finally figured out. Behind the curve as usual!

[riskvsreward] 25/9/2020 13:03

It is slightly cheaper than you buy ravp but it is not enough to make money for arbitrage. You pay 89.9 p for ravc which works out as paying ravp for (89.9-0.6108*31)/0.5849 = 121.33 p. While buuying ravp directly you pay about 125 p.

[kenny] 25/9/2020 12:56

People talk about buying RAVC as a cheap way into RAVP but the trading volume in RAVC indicates no one is doing it.

[gfrae] 25/9/2020 10:57

Only if you can buy near the bid price.

[catsick] 25/9/2020 09:18

Buy the ravc and you will get flipped into these at a 5pct discount which will more than cover the spread

[kenny] 24/9/2020 23:51

"The Basket Cases of Inflation and Deflation"


Quote from the above article: "Meanwhile, in other news, Wells Fargo is reporting reduced demand for loans from customers. Now that’s proper deflation: debt deflation."

[kenny] 24/9/2020 14:19

Gary, I agree with you, the spread needs to be narrowed.

[garycook] 24/9/2020 14:07

Been looking to buy in again here,but with the ridiculous spread,and the same or better yield can be purchased in IMB,LGEN,and SLA atm,with much less risk..

[pogue] 24/9/2020 11:46

Warren Buffet a very well respected professional investor I think all would agree recently started buying into Barrick Gold. This was a man who does not believe gold is place to put money, quote below as obviously a point is not valid here without a quote from a professional investor. So what does he know?

“You could take all the gold that’s ever been mined, and it would fill a cube 67 feet in each direction. For what it’s worth at current gold prices, you could buy — not some — all of the farmland in the United States. Plus, you could buy 10 Exxon Mobils (XOM), plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which would you take? Which is going to produce more value?”

[cfro] 24/9/2020 11:31

Quite correct pogue.

As to bonds, well China are selling. Professional investors ie the institutions HAVE to buy - someones gotta buy em aint they!

[kenny] 24/9/2020 10:39

"Professional investors are buying bonds. Should you be as well?"


Worth a read, for anyone who can access The Telegraph.