South32 Share Discussion Threads

[sirhedgealot] 30/5/2015 07:24

In mine opinion Interactive Brokers are quite good but because they have a lot of margin customers when things turn bad they can get quite bogged down. A friend of mine who's a broker is always trying to get my biz moved over to them but they are an AIM broker!..so never gonna happen. Interactive Brokers charge £100 a year for regular dealing but each trade is £6 and comes off the £100 fee. The U.S market is so liquid and being stamp duty free it costs about £2 a trade with them including forex. Quite amazing that it's cheaper to trade a different country .

[gateside] 29/5/2015 22:59

My shares are with iii (for my ISA) and The Share Centre.

While iii work out cheaper, they can be very slow.

Customer Service at The Share Centre is excellent.

[sirhedgealot] 29/5/2015 20:27

Mine are now showing in my ISA. I am slowly moving business away from (iii) due to late dividends and other inconsistencies.

[sirhedgealot] 29/5/2015 20:23

Gateside, apparently the ADR's were due in U.S accounts today. I will check to see if my BLT is there now.

[gateside] 29/5/2015 10:53

Shares in South32 now added to account. Finally!

[gateside] 28/5/2015 22:30

I'm still waiting on interactive investor (iii) as well. I contacted them earlier in the week and they said they will be in my account by wednesday!

It's now thursday and still no sign of them!!

[sirhedgealot] 28/5/2015 09:57

Still waiting on interactive investor (iii) to show them.

[togglebrush] 28/5/2015 07:34

Shares in my account from Barclays Stockbrokers TODAY AT LAST
It was late and I had to rattle their Cage yesterday which was the first "normal trading day"
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BHP Billiton Dates were :
18 May 2015 EX date in London
19 May 2015 Record date in London
25 May 2015 Distribution date in London
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Trading dates for South 32 dates in London LSE
18th May 2015 South32 S32 South32 Trading on "when issued basis"
26th May 2015 South32 Trading on normal basis 26th May at 8.00am

[togglebrush] 25/5/2015 14:31

LSE closed but ASX Prices can be found at
'

[jombaston] 20/5/2015 11:24

The 40% payout is on underlying EBITDA. So you have to guess this. Taking a 3.5 year average (using historicals in prospectus) you get a 7.5% earnings yield and a 3% div yield. So the yield will likely be less than BLT.

However, the net assets of S32 were U$12.95bn as of 31/12/14 and they reportedly already rejected a bid of $10bn. The current market cap is a little under $10bn.

So these are cheap assets - which need a bit more focus to squeeze more out of them. Not a recommendation, mind, if you are going to invest read the prospectus!

[togglebrush] 20/5/2015 09:34

Table C.7 Dividend Policy on page 12 of 1354
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No dividend due Interim ending 30 June 2015
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Tax payments may impact its capacity to declare a Dividend for Year end 31st December 2015
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Prospectus is 1354 pages long and would not get an award for clear English (but that is a common fault with a prospectus)
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I GUESS that in 2016 sibling rivalry will mean they will try and match BLT

[pherrom] 20/5/2015 09:12

Togglebrush

That same table gives eps 12.92 cents.

The policy is to pay out 40% of eps.

If you take the 12 cent dividend figure (x2 for full year) it would give a payout of 15.5p for the year!

[togglebrush] 20/5/2015 08:49

Ref pherrom 15 of 16
The Prospectus Table 7 page 287 on the pdf copy gives
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Dividends per share 2015 H1 as US 12 cents (a)
Diluted Earnings per share denominator as US 5.341cents H1 FY 2015
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But I am sure how this works as the are dividends received from BLT and others and so the text is not clear.

[togglebrush] 20/5/2015 08:35

Press
LONDON (Sharecast) - Date: 8:45 am, 20 May 2015
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Focus brings value with it is the thinking behind BHP Billiton´s decision to spin-off its operations in the more problematic commodities, such as aluminium, manganese and silver. The management of newly created South 32 will now be able to concentrate its efforts on micro-managing individual mines and product lines. In turn, that will free up BHP´s executive team to concentrate on its iron ore, oil and gas, coal and copper assets.
‘
A potential bid from a predator such as X2 Resources might provide support for South 32´s share price. The company´s stock market debut was underwhelming, although institutional investors did not seem to have been put off. Nonetheless, the firm has been left in charge of commodities with some of the toughest cycles to manage. As well, the impact of China remains an unknown quantity. However, the skilled management team at the helm means that at the very least the shares are worth holding onto. Buy for the long-term says The Times´s Tempus.

[pherrom] 20/5/2015 08:06

I am struggling to find the estimated yield on these.

The policy is to pay out 40% of underlying earnings as dividend.

Pro-forma H1 2015 estimate is 8.3 cents undelying earnings per share so say 16 cents for full year @ 40% = 6.4 cents @ 1.55 £/$ gives 4.1 p dividend per share.

Any advance in that?

[togglebrush] 20/5/2015 05:37

Significant volume occurred yesterday and volumes of lower priced S42 have cash values close to BLT
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FWIW
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Price of S42 was roughly 12th of BLT at launch and dividing S42 Daily Volumes by 12 shows both are generating roughly the same cash value which is interesting. Both have equal numbers of shares
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ADVFN reporting Daily Trading volume
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Date_______S32__________S32 / 12_________BLT
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Monday_____111,102,863___9,258,572_______17,403,008
Tuesday____209,724,744__17,477,062_______12,450,899
====================================================
Total___________________26,735,634_______29,853,907
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More importantly
Roughly two days London Volume gives 7.5% of S42 shares changing hands alone and share price is up 13.6% from launch.
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Volume x Price increasing = Momentum following launch

[unastubbs] 19/5/2015 11:34

hi - yes, i've bought the gsk shares today on anticipation of funding the purchase with the cash from the s32 shares which it seems from my brokers' advice will only be available to me next tuesday. you're right though, i am very haphazard! - una

[anhar] 19/5/2015 11:31

It reads like that but I think unastubbs means he'll sell the S32 next Tuesday, not the GSK.

In my view, deliberately going overweight on a share in an income port. by investing much above current average value in it is dangerous, especially if you depend on the income.

[darias] 19/5/2015 11:00

I certainly will not follow your advice Una. Your trading appears haphazard without any analysis.You will sell GSK "next Tuesday" without any consideration of what can happen in a week!

[unastubbs] 19/5/2015 10:43

i've just bought a number of gsk shares with the expected loot from s32 which i will sell next tuesday. with the special dividend on gsk this yields over 8%. my only reservation being that i already have a few gsk they are now my largest constituent. however, it seemed a no brainer to me. time will tell. good to see s32 rising, hopefully they will be at this level next week...

[anhar] 19/5/2015 09:20

I'm keeping my S32 allocation for a while, probably a couple years minimum, to see how their divis develop. This decision assisted by BLT at least maintaining its existing divi plus my strategy rule of not selling a share until its yield meets the market. I don't know what S32 yield will be, if anything, which is why I'm giving it reasonable time to prove itself as an income producer. As usual I have no interest in share price action, just in the divis.

I could have the far greater likelihood of income from the value of the S32 holding by selling and reinvesting the cash into another HY share, maybe BLT itself. But the income gamble I'm taking by waiting is tiny given that the current value of my S32 holding is so small compared with my BLT holding or with my whole portfolio.

[sirhedgealot] 19/5/2015 09:12

Well they are biting today ey.

[togglebrush] 19/5/2015 06:53

Significant volume occurred yesterday
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ADVFN are reporting a Daily Trading volume of over 111 million yesterday. That would have been on a "when issued basis". Using a share issued of 2,110 million(the BLT figure) and dividing the Daily Volume by 2, assuming each deal was a discrete buy or sell, that equates to 2.6% of shares changing hands in LONDON alone.
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Volume x Price increasing = Momentum on First Day

[unastubbs] 19/5/2015 06:49

barclays say the shares should be in accounts either today or tomorrow...