Record Share Discussion Threads

[masurenguy] 18/9/2019 16:49

Interesting move up today on a minuscule volume. (edited)

[ironstorm] 16/9/2019 14:56

I joined the part (?!?) today. Could not get as many as I wanted.

Chart is looking poised. As you say Divi is nice and hopefully safe.

Overall cheap valuation.

[robsy2] 16/9/2019 11:27

Yes that is correct!
Ticking upwards here this morning.. Maybe they are on their way to earning some performance fees, or they have picked up a few new clients or people are waking up to the 7% dividend on offer here.

[frazboy] 06/8/2019 10:11

I'll answer my own question - it clearly states that it does not include any performance fees for this year or next

[frazboy] 06/8/2019 09:38

Picked up a few this morning - plenty on offerI did notice that the Edison report did not include any performance bonuses, and, thus, probably, no special dividends. Was my reading of this correct?

[lord gnome] 05/8/2019 14:21

Greetings CWA1. Good to see another respected poster joining us in REC.

[cwa1] 05/8/2019 13:50

Thanks for the welcome and comments, the yield was certainly an attraction and the recent update seemed pretty solid with the directorspeak reasonable too...

"Economic, political and market uncertainty continue to provide opportunities to engage with current and potential clients. The combination of this engagement and our ongoing emphasis on enhancement and innovation means that we are seeing an encouraging range of new business opportunities across products and geographies.

"These will continue to be balanced against competition and fee pressure. Overall we are confident of making further progress in the current financial year."

If they can flourish with Economic, political and market uncertainty, then there seems to be plenty of that around these days!

Good fortune to all holders.

[cfro] 05/8/2019 13:45

Welcome CWA1,

Worth remembering that the yield here is about 9% which is well worth having in these markets + the potential of capital gains from a historically low valuation.

There is also a small possibility of Neil Record selling out someday too as many here believe.

[cwa1] 05/8/2019 13:35

Afternoon

Just taken a few at a touch over 31p. Hoping it is a bit overlooked and underloved and that, in the fullness of time, it will make a bit of a return to a higher share price

[konradpuss] 28/7/2019 13:21

Cerrito, I guess the reason that they only have one external institutional shareholder is down to the market cap.

Neil Record was engaged however he must be nearing that time of life when he wants to put his feet up.

Coming along next year to boost the number of external shareholders attending and hopefully ask some questions.

[cerrito] 28/7/2019 12:02

konradpuss
I have been here for 3/4 years and this year was determined to do what I have yet to do-make it to an AGM but I had a family funeral.
Glad you could make it.
One question I would have asked- why do they think that the only external 3%+ holder is Schroders?
Btw,did Neil Record give the impression he was loosing interest?

[konradpuss] 25/7/2019 20:35

trident, I got the impression it was the 60% equity holders that had the gaming knowledge and the Record directors provided the area specific input in respect of the currency markets.

Gaming is a big growing market. O.K. it's a start up and they usually fail.

[trident5] 25/7/2019 20:08

Did you not get the feeling that the 2 directors moonlighting on a currency game company would better serve us if they concentrated on the day job, for which they are very well rewarded.

[konradpuss] 25/7/2019 20:05

Lord Nome, I was at the AGM today, I think the last thing these fellows would do is mislead.

I did ask the CEO about their purchase of a small co. part owned by two directors. Most interesting, it is a games company based around currency.

Only two private shareholders at the AGM, where were you all?

[lord gnome] 25/7/2019 19:25

Or designed deliberately to mislead, perhaps?

[trident5] 25/7/2019 17:51

LG - on re-reading it I think the narrative talks about increasing their estimates and the table compares their estimates back to latest reported EPS. Sloppy reporting though.

[lord gnome] 25/7/2019 16:44

Yes, I found that rather odd. I thought I had missed something.

[trident5] 25/7/2019 11:01

? The narrative to the first table in their report references an increase in EPS, the numbers in the table show it falling.

[masurenguy] 25/7/2019 10:23

Earnings Upgrade from Edison

After three quarters with outflows in assets under management equivalent (AUME), Record reported a modest inflow in its first quarter ($0.3bn) and the number of clients also ticked up. Competitive pressures remain a feature but the group is countering this with its focus on innovation and service enhancement. The breadth of new business opportunities is encouraging. A combination of sterling weakness and mix changes has led us to revise estimates, with EPS increases of 9% and 8% for this year and next.

Record reported AUME of $58.3bn at the end of Q120 (30 June), an increase of 1.7% or 4.0% in dollar and sterling terms respectively in the quarter. Market-related movements were neutral, while FX and volatility targeting related moves added $0.7bn. The $0.3bn inflow mainly arose from the partial reversal of an earlier $1.1bn reduction when Record took a tactical profit on behalf of certain dynamically hedged mandates. The number of clients increased from 65 to 68, with the flow movements implying that the new mandates are relatively small. However, where these are new relationships or for funds, there is the scope for growth over time. There were no performance fees crystallised during the period and fee rates were broadly unchanged. For further details see overleaf.

Outlook

The macro backdrop, with significant tail risks, continues to provide a favourable background for Record’s discussions with potential clients and it reports an encouraging range of new business opportunities diversified by geography and product. Our estimates exclude potential AUME inflows (or outflows) and do not include performance fees until crystallised. For FY19, performance fees of £2.3m were earned (9% of revenue or 0.5bp of average AUME compared with the 5bp average management fee rate). Weakness in sterling, together with the inflow reported and mix changes, have resulted in increases in our estimates with EPS up by 9% for FY20 and 8% for FY21.

[rimau1] 19/7/2019 07:55

Encouraging update, no performance fees but for me the key KPI that I use for REC is always client numbers and this is the second quarter in a row that client numbers have risen. I continue to hold and buy any dips.

[trident5] 19/6/2019 17:37

It's very superficial. Did the company pay for it?

The valuation section seems truncated - it just compares various valuation metrics against a peer group.

Nothing on whether consolidation of local authority pension schemes is a threat.

Collateral is mentioned as an opportunity when Record's singular offering (f/x) makes it a big vulnerability.

Costs and employees at Record have ballooned over the years - I can't believe any detailed write up doesn't cover this off.

[masurenguy] 19/6/2019 16:50

hTTps://www.edisongroup.com/publication/potential-for-further-positive-surprises/24434

[konradpuss] 13/6/2019 20:42

Well if you look at their five year record (now did you see what I did there?) this is a growth company.

If you net off the cash it is a very cheap business.

Neil Record will retire or sell out one day.

[rimau1] 13/6/2019 12:10

Here comes the ST bounce!

[cockerhoop] 13/6/2019 10:03

Uncrossing price was 30.5p so a substantial improvement on 32p was available for those with DMA.