Record Share Discussion Threads

[p bear] 22/2/2012 20:31

Dear investor,

In line with the rest of our industry we are making some changes to the language we use in our marketing and communications. We are writing this letter so we can explain these changes properly. Most importantly, Record used to refer to itself as a "currency risk management fund" but 2008 made it embarrassingly clear we didn't know how to manage risk or the changing circumstances. At all. So like many others, we have embraced the title of "alternative asset manager". It's clunky but ambiguous enough to shield us from criticism next time around.

We know we used to promise "absolute returns" (ie, that you would make money regardless of market conditions) but this pledge has proved impossible to honour. Instead we're going to give you "risk-adjusted" returns or, failing that, "relative" returns. In years like 2011, when we delivered much less than cash in the bank, you may find that we don't talk about returns at all.

It is also time to move on from the concept of delivering "alpha", the skill you've paid us such fat fees for. Upon reflection, we have decided that we're actually much better at giving you "smart beta". This term is already being touted at industry conferences and we hope shortly to be able to explain what it means. Like our peers we have also started talking a lot about how we are "multi-strategy" and "capital-structure agnostic", and boasting about the benefits of our "unconstrained" investment approach. This is better than saying we don't really understand what's going on.

Some parts of the lexicon will not see style drift. We are still trying to keep alive "two and twenty", the industry's shorthand for 2% management fees and 20% performance fees. It is, we're sure you'll agree, important to keep up some traditions. Thank you for your continued partnership.

Record Currency Management

[chrisdgb] 22/2/2012 08:10

Well I am certainly holding, agree it is a bargain, just hope management don't try to launch a takeover on the cheap..

[pictureframe] 21/2/2012 13:20

Agreed - little if any downside here. Only problem is you cant get any big volume. I could only get £4k worth which I have just bought.

[hugepants] 21/2/2012 13:14

Any other nutters out there still holding this? Im surprised this counter hasn't bounced back up on a change of sentiment if nothing else. Basically the entire market cap of £26M is backed by net cash (approx £22M) + investments in REC's own funds (approx £4M). Huge forecast yield. Forecast earnings next year of 1.3p. Taking a reasonable view where's the downside?

[hugepants] 17/2/2012 13:05

Bought some more today. With TDWaterhouse you are quoted 12.4p to buy whereas you only pay 11.825p with Selftrade.

[topvest] 10/2/2012 13:22

I'm still watching and waiting. Unless they get some contract wins, the dividend may well be cut again. I like this company and I believe that they will secure some mandates, but this all takes time. In the meantime, profitability is likely to be under pressure. Definitely not one to buy for a 1.5p dividend prospect, but will be one to buy for recovery when they turn the corner. Not convinced they have turned the corner!

[masurenguy] 10/2/2012 11:15

David - I totally agree !

[davidosh] 10/2/2012 11:02

The directors salaries are very relevant. Have you not seen all the major news headlines on remuneration lately ?

The issue is that investors (and that at last includes institutions) are now looking very closely at remuneration policies before investing. This one will be a major turn off !! Who will be buying the shares if changes are not agreed and soon? For the shares to go up you need buyers..

You cannot just shut your ears and close your eyes and say 'so what' as that is what allowed this mess up at so many companies in the first place....passive institutional holders mainly.



There is a lot going on behind the scenes and Record will not go unscathed

[hugepants] 10/2/2012 10:41

david,
As you know this isn't an exact science, just think the risk/reward looks good. As regards overpaid directors its a fair point but I can also argue so what. I'm just looking at the balance sheet, the earnings (and the earnings forecasts) versus the current share price. The directors salaries are not relevant.

[davidosh] 10/2/2012 10:30

HugePants....What happens when the yield is not covered by the earnings and net cash reduces over time ?

This post and links/thread may interest you..

[chrisdgb] 10/2/2012 10:17

Would be nice to get news of a large mandate win...

[hugepants] 09/2/2012 13:07

Looks to be a big seller but Ive put some in my ISA.
I think its far too cheap with a 13% yield and market cap covered by net cash + investments.

[chrisdgb] 20/1/2012 12:01

I am convinced a bottom has been performed, my only fear is that with a decent stake the management launch a 'cheap' takeover bid..

[hugepants] 19/1/2012 20:51

topvest

Heres a recent note from Edison


They have forecast 1.3p eps and dividend maintained at 1.5p for next year.

[hugepants] 19/1/2012 11:43

11.25p now. Hefty drop here this morning. Shirley oversold?
I make net cash + investments held for resale equal to current market cap.

[hugepants] 17/1/2012 22:40

nice summary minty, thanks

[142minty] 17/1/2012 14:34

It means AUME shrunk by $3billion in the last quarter ( $28b to $25b). However REC had already warned the market of this ( loss of one mandate in DH and redetermination of their fee structure with another client ). The pluses are in there as well . 1 new swiss mandate awarded of $1.9bln and they are expecting to capture more business in this financial year , especially in the US where they now employ two specialits sales consultants. This isnt going bust or private.Still plenty of cash on the books and large insider ownership makes this safe and i see the share price ghoing only one way this year unless the markets go into meltdown ( which is very possible).

[chrisdgb] 30/12/2011 10:17

definitely on my radar....whether that is good or bad..!!

[mali7] 15/12/2011 09:52

13p looks like bargain to me, based on fear it has fallen a lot

What is the latest cash position of this company? Fool article above mentions about 8.9p/share in cash or so and is profitable as well, so not many companies like this available today? Directors bought recently in at around 15p. I guess a bit more research and this share could reward the patient one next year sometime.

Even though div cut, if interim maintained, still would provide a div of over 10%, it has fallen a lot since flotation and person owening a 1/3rd of the company, should really just take it all private for the cheap at current price, as investor clearly not interested looking at share price and trade volume.

[hugepants] 05/12/2011 22:12

Thats the one.
I just realised the drop on friday was because it went ex-dividend.

[gunner_ni] 02/12/2011 16:56

HP, could you provide a link to the mention on TMF, please.

[hugepants] 28/11/2011 12:35

Bought some this morning after seeing it mentioned on TMF.
Current trading probably not great but they reiterated total expected dividend of 1.5p (10% yield). And more than 50% of the market cap covered by net cash.