Raven Prop P Discussion Threads

[my retirement fund] 07/10/2020 22:30

Looking on putting a decent addition slug away for longer term here. What are current views? Is it wise to wait for better value or is it about now?

[cc2014] 07/10/2020 12:38

We will see what happens. The government are suggesting they will relax the stress test rules but I'm not sure that will help at all. The banks aren't lending because they think property prices will fall and they want a decent deposit ratio to cover it.

Waht would work as reported by the Telegraph is that goverment guarantees the loan about 85%. I don't think the bond markets will accept that.

The government need to stop meddling and just let prices fall a bit. Surely that's the best way to help all the people who can't get on the ladder.

[zangdook] 07/10/2020 12:27

Then when houses are unaffordable they have an excuse to (continue to) concrete over the green belt which enriches their property developer friends.

[gary1966] 07/10/2020 12:13

What's scary is that successive governments keep trying to solve a problem that they keep adding fuel to. Make homes be homes again, not investments. Introduce stringent lending caps like there was up until the 70's. Boris is announcing this new scheme as he is saying that houses are unaffordable to many, particularly the young. What does he, and all the other bright sparks in Whitehall, think is going to happen to house prices in the long run if you reduce the amount of deposit that is required and extend loan terms?

The reality is, is that successive governments may say that house prices are unaffordable and are an issue but they want higher house prices because people feel wealthier and therefor spend more. The treasury raises more money in stamp duty and direct sales taxes, it is a win, win for them.

[stun12] 07/10/2020 11:22

L-L, there seem to be a couple of factors. Invesco owned a large amount of RAVC and it was not totally clear what they would do with them after Raven opted out of the repurchase agreement they had. Additionally, RAVC had a safer profile than what it was exchanged into due having a maturity date in 2025. Holders like me ended up with common stock (which I didn't really want) and RAVP, which I actually bought a bit more of today. The yield should provide some protection from here provided the company remains healthy, I would like to think.

[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