Record Share Discussion Threads

[boonkoh] 03/11/2014 19:12

Some good volumes today. What's driving this new interest?

[topvest] 22/10/2014 19:36

I like the fact that the currency for return product is starting to look encouraging again. This is a high margin product. It is cyclical, but when it comes back in demand that could massively improve profitability. Tempted to top-up.

[gargoyle2] 22/10/2014 08:17

38p price target.

[gargoyle2] 26/8/2014 10:25

Ahh,ok, thanks.

[boonkoh] 26/8/2014 09:55

Tipped in the Investor's Chronicle from Friday's issue.

[gargoyle2] 26/8/2014 08:57

String of buys here the last few days. Someone sees some value here.

[topvest] 17/6/2014 20:31

Results pretty solid. I'm still encouraged by this quality company. Dynamic Hedging is stable, passive hedging is growing...and, importantly, some sign of life in the previously super profitable currency for return segment. If currency for return comes back as interest rates rise then this could do very very well. In the meantime at a yield in excess of 4%. Nice risk return on a 1-3 year view I think.

[topvest] 02/4/2014 07:58

Still very good value if things do turn upwards over the next 1-2 years. Very happy to hold.

[felix99] 01/4/2014 22:16

Yes its just become a bit more long term for me. I thought the emerging mkts currency volatility would bring more business but it seems most of it is tied to the dollar and that has been steady of late.

[topvest] 01/4/2014 21:21

A bit of a disappointing update, but I suspect there are bound to be a few bumps in the road to recovery here. I'm guessing that interest rate rises will assist the currency market when that happens. Not sure about my maths, but is that an AUM loss of US$0.5bn at 20 basis points average revenue?

[durham dealer] 04/3/2014 11:50

Hi Saucepan- Just bought in for a small amount- the price action over the past two weeks has been very positive- hence just had to buy a little stake. Let's see :-)

[saucepan] 11/2/2014 08:25

Morning folks. I joined you long here this morning after some fundamental and technical research emerging from a ShareScope filtering exercise: an initial stake that I will build if things go well.

A quiet thread, too; usually a good sign :-)

[felix99] 07/2/2014 16:46

I like the stock - happily been in a while and quite heavily.

Reminds me of when CLIG was small and when it was growing its FUM and share price then took off.

All this emerging mkts stuff means a lot of peeps probably lost a few quid as the noddy currencies crashed and they wished they had a hedging strategy in place. So demand should be very healthy from their target client and it should be like shelling peas pushing at an open door.

These guys appear to have a good system and record for managing these issues for people - so they have a good product, good reputation, growing FUM which means other client will be far more happy to come on board ( if other people are then they must be kosher so we will appoint them and then it becomes self fulfilling) and a healthy market to attack.

I reckon they should add on loads of new FUM in a relatively short space of time over next few months.

The business will be operationally geared so with lots more FUM its just profit straight to the bottom line - I would imagine all they need to add are salesman and account managers.

So essentially you got profit growth to boost the share price and you then have the opportunity to hit turbo as the rating multiple of the share moves up as well.
They have a fair bit of cash ( 10-15p per share ) and so stripping that out, the p/e is not very big for something that made 2p last year (31 Mar 13) and is forecast to make 2.4p this year ( 31 Mar 14 )and only 2.5p for 2015. Only seems to be Edison covering them but I reckon as they are on the up the mgt might do a bit of City smoozing as well.

[topvest] 07/2/2014 08:57

Yes, a very big jump. Interesting.

[tmfmayn] 07/2/2014 08:22

Included in the Chronic Investor's 'Bargain Share' portfolio.

NBU, HAT, CAMK, PVCS, ARDN, BDEV, TW., BMY, REC, OPM, FTO, CCAP

[gargoyle2] 07/2/2014 08:17

What's going on here? Can't see any news.

[topvest] 14/1/2014 09:57

Yes, very good news. Definitely starting to recover and win new mandates.

[142minty] 14/1/2014 09:56

hurrah

brand new performance fee earning dynamic hedging contract in place - lets hope we get lots more of thesem in the near future. would be interesting to know if thuis is with US based company

[gargoyle2] 10/1/2014 11:35

Good to see some buyers in here the last few days, price has been firming.

[tmfmayn] 10/1/2014 10:14

Scanning the Record website a link referring to Kentucky Fried Pensions caught my eye:
hxxp://www.recordcm.com/on-the-record/chris-tobe-kentucky-fried-pensions/

All triggered by a self-published book about Kentucky Retirement Systems and its use of Record's Dynamic Hedging product between 2009 and 2011:

hxxp://www.recordcm.com/media/48783/record_currency_management_re._chris_tobe_sep_2013.pdf


hxxps://kyret.ky.gov/Research%20and%20Education/Currency%20Hedging%20Program%20Review.pdf

The book seems to suggest various shenanigans at KRS and Record, all denied by both parties. Upshot seems to be KRS used the product, found it caused a drag on the overall performance (in part due to the 'high' costs), and a new investment team at KRS decided to ditch it.

The contract termination decision stated in KRS document above was made one day before this announcement:


The KRS document does provide a good insight into the decision making, performance and background to these contract awards.

[gargoyle2] 02/12/2013 10:23

Couldn't resist another chunk of these today. There's a seller in the background, but that looks like a good opportunity to me.

[topvest] 01/12/2013 17:54

Yes, I think Record are a good quality outfit with the potential to become much bigger. One day their "Currency for Return" product will also come back into fashion. cZero % interest rates are not here to stay.

[gargoyle2] 30/11/2013 16:25

Bought in here last week, after first being alerted to REC by those recent large director/insider buys. Subsequently (today) saw the latest Edison report dated 25 November. It's here, although you might need to register:

It states:

"Record's underlying PBT increased 21% in H1 due to growth in AUME and operational leverage. Although the recently announced reduction in average fees on existing business will reduce the revenue run rate, Record has done this to position itself for future expected growth; it is hopeful that new client wins will more than compensate. New business enquiries are at their highest level since 2008. Record has announced it is in advanced discussions relating to a 'handful' of new hedging mandates ranging in size from $1-10bn. Our fair value of the existing business is 33p. This increases to 49p if we assume $2bn pa of new dynamic hedging mandates."

I'm expecting new contract wins to be announced over the coming weeks, which I reckon will see the price move up.

[topvest] 15/11/2013 21:23

Yes, it looks encouraging here. The fee reduction should be seen as a positive as they should be able to both maintain existing business and win further mandates. It has been funded indirectly through the recent contract win and so they have a very good platform to expand from. All the signs of a quality business here. It will take time, but they could be materially bigger in 5 years time and multi-bag several times from here in my opinion.