Record Share Discussion Threads

[konradpuss] 06/5/2020 18:53

H.L. web site is saying nearly 8 million shares traded today. Is that right?

[smidge21] 02/5/2020 16:16

Regarding the 'call in the $', if you understand the product then you will know which way they are - it's a system

[ben value] 28/4/2020 17:04

Simon Thompson tipped 4 income shares including Record. Does anyone know what the other 3 shares were?

[farnesbarnes] 27/4/2020 13:47

Who tipped this?

[konradpuss] 27/4/2020 13:12

Thank you. I thought it would be him. Bearbull also has it in his income portfolio as well from way back.

[frazboy] 27/4/2020 12:59

Simon Thompson, I think

[itsnotmeitsy0u] 27/4/2020 12:59

ST tipped it

[konradpuss] 27/4/2020 12:52

Fraz, who tipped it in the online IC?

[itsnotmeitsy0u] 27/4/2020 12:23

at last - am up 20% after weeks of nothing happening...

[frazboy] 27/4/2020 12:05

ST tip in the IC online version?

[trident5] 24/4/2020 10:01

I wonder if anyone has researched the performance of companies who spend shareholder money on research - I'm guessing they under-perform.

[masurenguy] 24/4/2020 09:14

A reassuring update
22 April 2020

With more than 90% of assets under management equivalent (AUME) linked to equity and other market levels it was not surprising to see Record’s AUME fall by 9% in the quarter to end March. Positively, flows and client count moved little in the period. For FY20 as a whole AUME was up 2% in dollar terms, inflows were equivalent to 8% of the opening level and the number of clients increased by 11%. The group acts on a purely agency business, and has a sticky institutional client base and a strong net cash position.

Q4 AUME falls but flows positive for quarter and year

The AUME figure of $58.6bn for end March was down 9% compared with the end of December 2019 (and by 3% in sterling terms to £47.3bn). This was a satisfactory outcome given that nearly all passive and dynamic hedging and some multi-product mandates are linked to underlying equity or other market assets. On client AUME flows, a short-term tactical mandate of $1bn terminated in the period (previously announced). There was an inflow of $1.1bn into passive mandates, which, with other flows, meant a virtually neutral overall position in terms of client flows. The client count was also effectively stable at 72 (73 end December). As would be expected, market moves were substantially negative, knocking $4.5bn off the total while currency movements deducted a further $1.7bn. Record indicates that there has been no change in its dividend policy (cover of at least 1x) and that it expects to maintain payment of its ordinary dividend (full year 2.30p, implying a yield of 3.5% for the final payment alone).

Volatility poses challenges but may also help

Heightened volatility, reduced liquidity in foreign exchange markets and a move to remote working have presented challenges for currency managers but Record has continued to execute its mandates on behalf of clients without disruption, demonstrating the resilience of its operations. Client engagement during recent weeks has been strong and the market background seems likely to encourage clients and potential clients to maintain or add to risk-management mandates.

Valuation

Our EPS estimates for FY20 and FY21 are reduced by 3% and 24% respectively, primarily because of lower AUME following market moves. Nevertheless, the shares trade on a calendar year 2020 P/E below the peer average (or broadly in line for FY21). As before, our FY21 estimate does not assume any performance fees.

[itsnotmeitsy0u] 17/4/2020 12:16

yep bought in a few months ago at 32 and topped up at 26.def now a LTH for me

[konradpuss] 17/4/2020 10:26

ItsismeitsOu, looks like you are not far off your 10% rise.

Now here is a provocative question. Is Record Plc a 'value trap'?

As an aside I am a holder of this stock and have been for a while.

[masurenguy] 17/4/2020 08:54

"The Board's dividend policy has not changed as a result of the current market conditions, and the business remains profitable, cash generative with a strong balance sheet. Consequently, at this time, the Board expects to maintain payment of its ordinary dividend for the full year in line with current market consensus, subject to final confirmation by the Board at the announcement of FY results."

Some steady buying after the open but surprisingly only a 3.5% rise on the Offer so far this morning, which would therefore provide a projected yield of circa 7.2% on the above basis !

[itsnotmeitsy0u] 17/4/2020 08:01

ok no 35p open but am expecting at least a 10% uplift today

[konradpuss] 17/4/2020 07:52

Rob, yours was a better commentary.

I like the re-rating bit!

[robsy2] 17/4/2020 07:26

bit of a cross over of posts there

[robsy2] 17/4/2020 07:25

You may be right. The year was going very well up to feb 29th.
As expected the strong USD will help reported income. This is resilient performance , client numbers up significantly , AUM up despite the virus, a fairly poor performance from the products themselves though the hands-on currency for return pruduct did really well.
No performance fees earned,divis look safe. The policy is unchanged so the divi could be the same as last year 1.15 int + 1.15 final. If they paid a special of 0.5p then the divi would still be covered by EPS, forecast to be 2.9p, so that works.

If it opens at 35p , pays a divi of just 2.3p for the year, then that is a 6.57% divi. Not bad for what could finally (fingers crossed) be morphing into a growth stock. If it can have a good 2021 and really grow, it could finally re-rate back to nearer 50p.

[konradpuss] 17/4/2020 07:23

Not quite sure of this opening at 35p after a quick review of the numbers.

The dividend looks safe. No performance fees in this quarter. AUM down due to stock market losses. Their currency strategies did not do so well either.

No client losses and no further money leaving other than what has already been flagged up prior.

They play up how established and respected the company is and hope to pick up some new clients because of this.

Just happy the divi. appears safe.

[itsnotmeitsy0u] 16/4/2020 17:13

reckon this will open at 35p tomorrow

[konradpuss] 16/4/2020 08:50

Robsy, all we need is a little growth and some performance fees!