Real Estate Credit Inves... Share Discussion Threads

[nk104] 02/3/2020 21:14

You would expect the share price to fall if it goes xd. This would lower the NAV by the amount of the dividend paid.

That’s not a reason to sell. Objections to management may or may not be valid, but that’s another point.

[davebowler] 28/2/2020 16:28

It would be better to have a large 'C'share issue and merge later at NAV, in my opinion.

[santos123] 28/2/2020 11:51

Hi Graham.

I have to agree with every thing you say.

I sold my entire holding yesterday for 168.7p.

The reasons being :-
The net asset value (N.A.V) of the share is 166p, it was getting close to that price.
The company goes xd next Thursday, 5 March.
The price will drop next Thursday, it will probably go below the 166p N.A.V.
That will send the price down further.
The company directors are not interested individual shareholders, and do not look after their interests.

I wish all remaining shareholders good luck, I think they may need it.

Always do your own research.

Stay Prosperous.
Santos123.

[grahamburn] 25/2/2020 14:50

The difficulty for long standing retail shareholders in respect of the dividend is that, as you say, it has been steady for years so far as they are concerned. However, so far as the business itself is concerned the dividend payment has been going up annually due to the regular increase in the number of shares in issue.

It's just a pity that retail shareholders (unlike some institutional shareholders) have not been given the opportunity to take part in the numerous placings over the years, and still won't in the year ahead.

[santos123] 25/2/2020 11:53

Hi Cerrito.

Thank you for your research, very interesting.

I don't know if you had seen company notice on the next divi.
It is 3p, exactly the same as last years divi, no increase.
The share price is going nowhere, and the divi's are not going up with inflation.

Makes you wonder what the executive directors, and non executive directors, are doing to earn their salaries.

Stay Prosperous.
Santos123.

[cerrito] 23/2/2020 20:50

Reading the prospectus I see that on the basis that the full amount of 150m shares are issued the expenses will be £4.6m which given that it is not under written seems very good business for Liberum.
Given that the net proceeds in this ssenario of all the shares being issued will be £240m plus it will take some time to disburse and the balance sheet will have plenty of cash

I was thinking of adding but this has put a dampener.

[santos123] 18/2/2020 13:43

Hi Westcountryboy.

Yes...Most investors hold R.E.C.I. for the yield.
They certainly don't hold R.E.C.I. For capital appreciation.

Hi Graham.

I'm not so sure about minimal risk Graham, I mentioned the shares had gone up 5P OVER 2 YEARS, as of last Friday that had reduced to 2p.
So I think personally there is a big risk.
The company clearly will issue share that dilute the economic interests of existing shareholders. This must effect the share price, and the risk of capital loss.

Hi Cerrito.

I have not written to to the company, as surely they understand the consequences to existing investors of what they are doing.
But, do not think it is relevant.
I will sell the shares in near future, there are a couple of companies I,m taking an interest in.

Stay Prosperous.
Santos123

[hpcg] 17/2/2020 10:39

There is always a secondary offer on the table with these guys. It is not a reason not to hold, but definitely buying has to be done cutely. Probably worth trading out at 175p as well.

[cerrito] 16/2/2020 13:26

santos123
I hear what you say and I did ponder about writing to the Chairman to echo your point.
I would have preferred 168 and would have written if it had been below NAV.
Did you write in?

[grahamburn] 14/2/2020 14:09

Correct plus the minimal risk of capital loss.

[westcountryboy] 14/2/2020 14:01

Don't most investors hold RECI for the yield?

[santos123] 14/2/2020 12:16

Another dilution of value to existing small shareholders.

The share price has gone up by 5p over 2 years, probably all down to the dilution of all these discounted shares being put into the large institutions, nothing going to existing shareholders.

You have to wonder about the point of having non executive directors.

When they allow existing small shareholders to treated in this abysmal way.

Santos123

[skinny] 13/2/2020 07:15

.

Highlights:

· The proposed Placing Programme is intended to enable the Company to raise additional capital through the issue of up to 150 million New Ordinary Shares for the period of 12 months from the date of the publication of the Prospectus.

· Assuming 150 million New Ordinary Shares are issued under the Placing Programme, the Company will raise gross proceeds of approximately £249 million based on the latest unaudited Net Asset Value per Ordinary Share of 166.0 pence as at 31 January 2020.

· The funds raised from the Placing Programme will be invested in accordance with the Company's strategy and investment objective and policy to grow its portfolio.

· Liberum Capital Limited ("Liberum") has been appointed as Sponsor and Bookrunner in relation to the Placing Programme.

Bob Cowdell, Chairman of Real Estate Credit Investments Limited, commented:

"Following the success of the recent oversubscribed tap issue, the proposed Placing Programme will position the Company to carry out further issues and take advantage of attractive investment opportunities over the next year."

[badtime] 11/2/2020 15:31

Happy to hold these

[yieldsearch] 06/2/2020 15:48

nerja: see my post 16 on the ravc chat; also all the comments from Kenny on the ravp chat
i hold ravc/ravp/reci (and long time ago recp..)

[eeza] 06/2/2020 15:42

Anybody like RECI ?

[davebowler] 06/2/2020 15:28

I like RAVC too.

[holts] 04/2/2020 21:42

To be brief , they were getting a small uplift in yield , a redemption date and the seniority of C .

[nerja] 04/2/2020 21:18

Yep your correct eeza but , I am a bit of a numpty looked at ravc, still can’t work it all out sadly!

[eeza] 04/2/2020 19:47

C's have seniority over the P's I think, and also have a redemption date?

Should be having the discussion on the RAVP thread I think as OT here.

[nerja] 04/2/2020 19:42

Holts forgive my ignorance,but what’s the idea/advantage? Serious question

[holts] 04/2/2020 19:24

Some People have been switching out of P to C as well .

[eeza] 04/2/2020 16:16

Still an overhang in RAVP from an earlier Woodford dump @ 120p. Won't move up until they've been sold on.

[nerja] 04/2/2020 16:00

What do you think of ravp at the moment, can’t figure it all,I keep watching gaca for a signal for the prefs