Record Share Discussion Threads

[chrisdgb] 01/3/2012 13:40

Let us hope so, we desperately need a positive catalyst./..

[pictureframe] 01/3/2012 10:38

Final shake out today?

[hugepants] 29/2/2012 18:58

Well on a cursory glance each day it looks like it has been mainly buys here for months. Not in big volumes but over a considerable period of time. Im no expert but given the FTSE has bounced 20% I would have thought the market makers would have marked this up even on the modest buying that has occurred. My guess is one of the larger shareholders has sold a chunk of shares to the MMs at 11p and they are happy to shift them at 11.5p-12.5p. We shall see.

[contrarian2investor] 29/2/2012 18:39

HugePants if you look at the daily volumes over the last month you will see that volumes have been paltry. REC has not bounced yes because their has not been any significant buying. However value investors could be dipping their toes in now that it is trading near book value.

[chrisdgb] 28/2/2012 08:31

WINS traded over 400- shares yesterday, let us hope we can finally bounce of these depressed levels...

[142minty] 27/2/2012 12:05

if they took this company private it would make expansion much harder in the US - they need to be listed. Also there would be little point on current PT profits IMHO. I see the Apha Funds( see Bloomberg) have soared recently whcih may bode well for future AR customers/contracts if anyone still has the appetite to play the carry trade. I believe they will capture new mandates , esp in the US .very hard to buy in quantity.

[hugepants] 27/2/2012 09:27

If there wasn´t a large seller this would have bounced like everything else IMO

[contrarian2investor] 24/2/2012 18:59

Sorry to hear that P Bear.

REC is currently trading at book value and a derisory PE below 4. This is because AUM and share price have fallen nearly 50% and 93% respectively since IPO.
The recent volumes don't indicate a big seller, but I can't see any larger buyers either.
The share price flatline could continue until increases in AUM/Income & Profit are forthcoming. Otherwise the dividend will have to be slashed. Markets/investors/sentiment are fickle, as a reduction in dividends to a more sustantable level could actually be seen as a positive.
What about Neil Record's frustration with the share price performance since IPO? As anyone considered the possibility that he could just decide to take the company private again?

[hugepants] 24/2/2012 16:06

Obviously still a large seller. Everything else has bounced (especially high yielders).

[masurenguy] 24/2/2012 09:58

P Bear - 205: High director remuneration also leaves a bad taste in the month.

Well what else would you expect - these poor guys really have to compensate themselves from
the serial decline in their dividend income !

[p bear] 24/2/2012 09:10

I already took a punt here at a much higher price!

Many aspects still look solid here (balance sheet, yield, good revenue, model is proven and should work again), but nothing inspires me to buy more as (like you) I see no catalyst for change. When they pick up a new customer or improve fees - then I'll be very tempted at similar levels. High director remuneration also leaves a bad taste in the month.

[chrisdgb] 24/2/2012 08:16

Well with the strength of the balance sheet and AUM, surprised either an activist or another corporate palyer would not do something....Crystal Amber/Laxey..??

[contrarian2investor] 23/2/2012 21:24

P Bear, spot on, thanks for that. That gave me a nice chuckle. At what level would you consider a punt here? Me, I'll be buyer when they come forward with a catalyst to shake up this company. Or when an activist investor buys in to wake up the BOD.

[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.