S & U Share Discussion Threads

[exv] 01/12/2020 21:24

Open access. If I get a few new perspectives or pointed refutations I am better off for it!

Preaching to the converted here, I understand, and we are all prone to a little bias on the stocks we hold...

[jeffian] 01/12/2020 19:51

When I saw the link, Lewis, (by the way, you can fix the link by editing your post and changing the http to hTTp) I cynically assumed it was yet another fishing trip to get people to sign up to your website, so thank you for the open access. A most interesting analysis, although I probably fall into the psychological trap of approving of comment I already fundamentally agree with anyway (as said above, I have been a holder since 2001).

[exv] 01/12/2020 19:09

Fine folks,

I wrote up my thoughts on S&U, which is my biggest position. All comments, pushback or additions welcome

[jeffian] 15/10/2020 11:30

Very interesting, thank you, CWA1.

I'm normally wary of Edison reports for this reason - "This report has been commissioned by S&U and prepared and issued by Edison, in consideration of a fee payable byS&U." - particularly when they are bullish, but I am a fan of S&U management and feel this is probably their way of guiding expectations for the next couple of years. In all the time I've held them (since 2001 originally), I've never known them cut the divi, even when it was barely covered in the dark days of doorstep lending before the arrival of motor finance, but they have always had shareholders' interests at heart so I am sure that they will try to 're-base' at a sustainable and growing level.

[cwa1] 15/10/2020 08:11

Just for interest, the Edison report from 7/10:-

[jeffian] 02/10/2020 10:26

For the avoidance of doubt (#1616) I meant "out of" the commercial property business, not SUS! I remain a shareholder here.

[pugugly] 02/10/2020 09:42

Investor meet company now on - Sound confident - very honorable and responsible towards staff and customers. Will continue to hold.

[jeffian] 30/9/2020 13:23

Luckily, I am out of it, both as an investor and a career!

[essentialinvestor] 30/9/2020 10:25

Ian, HMG arguably creating systemic risk in the commercial property market.
Need to be very careful in that sector atm.

[jeffian] 30/9/2020 10:22

I've owned shares in this company since 2001 and it's the first time I've seen a dividend reduction. Paying a stable or increasing divi has always been a 'badge of honour' for the Coombes family, so things must be worrying. I think the Government made a huge mistake by imposing 'repayment holidays' on loans, not just in terms of banks and loan companies like S&U, but also allowing tenants not to pay their rent and be protected from recovery action or eviction. All this does is pass the problem down the line to someone else. When(!) things get back to normal, there is going to be an awful lot of pain as these things unwind.

[pugugly] 30/9/2020 07:59

Results down as expected - still paying a dvdend but significant reduction - would notmally have expected a markdown but in this crazy market anything could happen.

Possibly the most worrying aspect is the massive impairment provision - OK very prudent but potentially indicating (imo) worse to come.

[chrismcglone] 25/8/2020 11:47

Savings deposits have rarely been higher. It’s probably safe to assume at least some of that will be used to pay down debt. There’s not much left to say about interest rates. I still smile at re-mortgage rates, given I’m old enough to have paid 15% on mine. Will banks start ‘charging̵7; for large deposits of cash, ie will rates go negative. There’s some evidence to suggest negative rates are already with us. So ‘bad debt’ can and will be carried for a long time to come.

However, it looks likely we will also see levels of unemployment we haven’t experienced in a generation as Furlough ends and those jobs are no longer there? But hey, that’s investing, isn’t it. Good research, time, a decent bit of luck and a healthy dose of guesswork thrown in for good measure.

I think we will likely trade a bit lower. My experience of that is usually an opportunity to add a few more. This is a fairly boring, dull, predictable company and given I also hold a few gold miners, there’s absolutely nothing wrong with that in my book.

[taylor20] 24/8/2020 12:07

Re: Bad Debt

Relationship may not be as cut and dried as you might think. For example H&T [HAT] reported a high level of pledge/loan redemptions during the lock down/post lock down as people's discretionary spend had plumeted they had more cash available to pay off loans. (Plus not having any interest to pay, probably helps).

[essentialinvestor] 23/8/2020 14:00

Share price may be targeting the March low circa £14.20.

If that goes then around £12 may be another interesting level imv.

[tudes100] 22/8/2020 23:59

It's all about bad debt provision. I like SUS, I'm an ex holder, but it's difficult to see how bad debt is not going to rise significantly over the next 12 mths

[gabsterx] 22/8/2020 07:15

Don't understand the sell-off, given the situation you'd think people would be shunning new cars in favor of second hand. This was evident by the record number of applications received.

hxxps://www.express.co.uk/life-style/cars/1323685/used-car-sales-record-demand-second-hand-vehicles-price-rise

[tiswas] 21/8/2020 08:34

Tempted to buy down here for all the reasons mentioned above.

One concern is whether they have to cut the divi at some point. £15m pa and they do not appear to have masses of headroom in their borrowings but on the plus side remains twice covered looking at forecasts.

[jeffian] 11/8/2020 11:33

I know you're not supposed to "fall in love" with a company, but I do this one! (I've been here since 2001). Their reports and TU's are a model of how companies should keep shareholders informed and always sound as if they've actually been written by a human being.

[pugugly] 11/8/2020 07:52

Wise words from the TU which are applicable to all life's activities and should (imo) be printed out and stuck to the wall where you can see them all the time -

" it is wise to recall Mark Twain's admonition- "It ain't what you don't know that gets you into trouble, but what you know for certain that just ain't so". .

[gabsterx] 11/8/2020 07:23

Cautious trading update today. I liked that under-writing was not loosened to boost revenue even though applications are at record highs.

"Loan applications are at a record high but our policy of early tightened under-writing, and a focus on customer quality has seen current transaction levels 25% less than last year. This has produced improved early repayments, indicative of the high quality of the new customers taken on since Covid began."

Aspen showing growth and above budget as well.

"Aspen has seen an uptake in both new transactions - with July being above budget - and in recent loan redemptions. As the current deals pipeline slowly improves, current net receivables are just below £19m compared to £15.5m in early June."

hxxps://otp.tools.investis.com/clients/uk/s_and_u/rns/regulatory-story.aspx?cid=1438&newsid=1407310

[chrismcglone] 23/6/2020 16:00

Not remotely tempted to sell and want to add but have decided to sit and wait this out. The consequences of the crisis have not yet fully emerged and the impact on the economy will again hammer the wider market at some point. Some serious doom and gloom still to come and that will feed into the stock market. But like every other crisis before it, we will recover and long term the market will once again prove to be the only real place to invest for most of us mortals.

[deadly] 18/6/2020 22:01

XD today for 50p, yet price rises 20p.

[doc60] 09/6/2020 12:51

Yes agree GX. Long term hold for me. Tempted to top up a bit but have concerns over how the overall economy will fair post covid.

[gabsterx] 09/6/2020 10:41

Solid update today by S&U, heavy impact on business as expected but solid balance sheet and conservative approach means the virus can huff and puff but it won't blow the brick house down. And if it does Aspen Bridging will be happy to finance the rebuilding! :D


hxxps://www.proactiveinvestors.co.uk/LON:SUS/S-&-U-PLC/rns/826564