Raven Prop P Discussion Threads

[igbertsponk] 19/11/2021 12:40

Indeed, but I sold a house on Monday and only got the dosh in the right place yesterday!

[igbertsponk] 19/11/2021 12:13

Even an order at 123.6 hasn't been taken.

[montyhedge] 19/11/2021 12:12

Now have pay 123.60p I had a order on to buy at 122p, oh well.

[igbertsponk] 19/11/2021 11:12

hard to buy they is.

[kenny] 19/11/2021 11:09

Today, the rouble is almost back to where it was on 30.06.21 e.g. the last balance sheet valuation date. One of the most volatile currencies in the World.

[igbertsponk] 18/11/2021 12:01

Header updated with 2022 pref divi dates.

[kenny] 18/11/2021 11:39

As I have posted before, the rouble is extremely volatile and unpredictable.

Recently it reached a 12 month high against sterling but within a few days thereafter, it dropped over 3%. That wipes out about half of the currency gain since 30.06.21.

In my opinion, it is not possible to predict with any certainty, its level as at the valuation dates of the end of December & June.

[montyhedge] 18/11/2021 10:24

Can't get cheaper than 123p.

[igbertsponk] 18/11/2021 08:12

Ex div and after not shifting first thing has now dropped the full thruppence.

[rayg5] 15/11/2021 13:31

But good luck with that anyway.

[rayg5] 15/11/2021 13:30

Of course it might not drop by the amount of the divi.

[montyhedge] 15/11/2021 11:57

rayg5
I will wait for ex get them 3p cheaper, in for long term, had these since 2011 slowly accumulating. Also in a ISA tax free income.

[rayg5] 12/11/2021 12:39

Still cheap, Monty. Go on - you know you want to.

[montyhedge] 12/11/2021 11:55

Always have a nibble now and then, I want them at 120p, can't get below 126p, but I suppose yield still 9.52%, I'm tempted.

[holts] 12/11/2021 07:27

Putin about to be behind a few local difficulties ?

[kenny] 11/11/2021 15:02

Today, the rouble has reached a 12 month high against sterling.

[rahosi] 11/11/2021 13:15

Test Sale 1.257
Test Buy 1.2675

[cc2014] 11/11/2021 13:02

Why would the management want to redeem the prefs?

They pay an interest rate of 12% whilst the Russian government base rate is 7.5% and likely to go up to control inflation.

Seems fair and reasonable to me.


Meanwhile the buying continues and the offer moves up again. Nice.

[gfrae] 11/11/2021 10:14

Kenny, nor do I at the moment, though if the share price ever goes to a price that reasonably reflects the underlying assets and prospects, it may regard the Prefs as expensive and wish to buy them back by either issuing new ordinaries or raising more bank debt.
As many of the same institutions own the Prefs and the Ordinaries they will look at what is overall best for them and presumably with their agreement they could be cancelled.....remember what happened to the Convertibles.

[kenny] 11/11/2021 09:53

gfrae - I don't think redemption of the preference is a possibility - ever. If any debt is to be repaid, it will be bank debt first but being lowly geared is not managements objective. Also, the company has a long history of directing its net annual cashflow to buybacks of the ordinary.

In any event, there are two other protections for preference holders. First, any proposal to redeem requires a vote by 75% of those voting to vote in favour. Note that Quilter owns 31.6% of the pref's so can and would block a vote that was not favourable to its interests. Second, the Articles also provide that in the event of a takeover of the company, the stock exchange quotation for RAVP will be maintained.

[gfrae] 11/11/2021 09:27

Hypothetically if the management at some point in the future did wish to redeem the Prefs, presumably they could with the agreement of a majority of the Pref shareholders ?
At the moment with the Ordinary share price slouching aggressively at a discount of 40% to NAV there is no likelihood of that happening.

[jaf111] 11/11/2021 07:55

2022 Pref Dates confirmed....always useful to have in advance....

[kenny] 11/11/2021 02:43

zangdook - you may well be correct. However, I suspect that now that Lloyd is following Natwest, a number of other financials institutions will also do the same - like Aviva, Santander, Standard Chartered and others.

All financial companies have the same problem with preference shares currently in issue, namely, they are not recognised as capital under the latest Basel rules. The solution is to get all or as many as possible redeemed. Probably all will follow the tender route because no one wishes to repeat the disaster of Aviva trying to buy them back at par.

For those not tendered, there may be further tender offers in later years, which may or may not be at current prices if interest rates rise materially. Investors who intend to hold their shares throughout the interest rate cycle may not tender, but others will.

The 16% take up on NWBD has not put Lloyds off and they are even offering a slightly lower exit price (higher exit yield) than Natwest.

[zangdook] 11/11/2021 01:43

I don't see a reduction in the choice or availability of prefs - there was what, 15% takeup for the NWBD tender a few months back? And it's not noticeably less liquid than before.