South32 Share Discussion Threads

[jombaston] 30/6/2015 11:57

It is not unusual to see selling pressure in spin-offs where a parent company has distributed shares to shareholders. Many reasons for this including institutional shareholders with shares outside the index/too small mkt cap, investors unfamilar with the company, too little info, too complicated prospectus/listing particulars etc. Sound familar?

The bad news is that these shares can underperform for months or even a year. The good news is this can present very rewarding returns over longer periods. Don't take it from me - read the experts. Greenblatt for starters.

So no rush to get in and if you are not a patient investor, forget it. I am scaling in myself but if the directors start buying then don't hang about.

[anhar] 30/6/2015 11:17

I hold BLT in my income port. and have decided to hang on to my S32 allocation for the time being. My strategy is to buy high yield shares and sell when the yield drops to the then market average. If that never happens, I never sell. I have no interest in share price fluctuations or almost all news or who the CEO is etc., only in the divis.

I wouldn't buy S32 now because of the unknown yield, so I'm not going to add to my holding, but I'll give it a chance to develop. Maybe a couple of years. If and when it starts paying divis, I'll then review it in line with my normal strategy rules for yields.

In any case it is only a small holding compared with my BLT so whatever happens it is not a significant part of my port.

[careful] 26/6/2015 14:55

just had my final nibble here at 89.5
I think this is a special situation in the medium term.
..but with china, traders, commodity prices, it will take time.

[gateside] 26/6/2015 13:23

Hopefully not to 32p

[careful] 26/6/2015 11:38

its called south 32 because the share are always heading south.

[careful] 25/6/2015 13:16

just bought a few more at 93.16

[gateside] 23/6/2015 15:37

A financial calendar on the investors section of their website would help investors to plan and maybe have a bit more faith in S32 going forward.

[urgentclick] 23/6/2015 12:24

Preston must be sitting on a hefty loss right now. But the gambler in me says 90p was the bottom :)

[scotches] 23/6/2015 07:53

"It's a good company with a good balance sheet, but it has exposure to things that are going down at the moment."

When asked how South32 had fared against expectations since listing, Liberum analyst Richard Knights said: "Worse than consensus for sure."

Aberdeen Asset Management ranks as the third-biggest shareholder in South32, and its senior investment manager, Andrew Preston, said the new company deserved time to prove itself.

"It is too soon to make any sort of meaningful judgment to be honest, there has been some small bits of news obviously, but I don't think there has been anything specific that we would take as being indicative of where the company is going or what we are faced with," he said.

"I think you need a little bit of patience with these things."

[darias] 23/6/2015 06:25

I have a very limited residual holding from the split with BHP Billiton.

The company has a market cap of around 4.844m has now been around for a little over a month.

Now it is my view that a £4,844m company should be udating its shareholders with financial information on a regular basis to maintain its price but I have looked at the news since it opened and the only news of any import I can find is

They have announced a new "joint" secretary. But why does a PLC need two secretaries. Is it so that they can blame each other if things go wrong, if so why not 3, 4 or even more company secretaries for each PLC.

I have considered buying more but I need some information as to why I should and there is nothing there.

I have decided the company is a "pig in a poke" and it is for gamblers and insiders to deal. When I see some support in the share price I may take a larger stake but until then,

Best of luck all.

[gateside] 22/6/2015 21:17

Digital Look website says this has a forwrad of 3.6%

Maybe that will help put a floor on the price. Tempted to top up at these levels. DYOR though as it is certainly unloved at the moment.

[gateside] 22/6/2015 21:15

llef... Thanks for clarifying about the FTSE indices.

[urgentclick] 22/6/2015 14:54

I will try to bail out with minimal loss.

[urgentclick] 22/6/2015 14:49

OK, thanks for your info llef.

I got a buy order filled when the stock was at rock bottom today so I can trade that later to claw back some of the losses incurred from believing in the hype of the shareholder offer.

[llef] 22/6/2015 13:47

hello

s32 only has a secondary listing on the LSE, its primary listing is on the Aussie exchange. So it will not be part of the ftse 100 index even when the index is rejigged next time. Info below comes from the demerger document

There can be no assurance regarding the price at which South32 Shares will trade following the Demerger. Some BHP Billiton
Shareholders may not wish to hold South32 Shares (or may not be permitted to do so under the terms of their investment
mandates), including because South32 will not qualify for inclusion in FTSE indices. However, the Board expects that there
may be demand for South32 Shares from investors whose portfolios are benchmarked against the S&P/ASX indices

So the share will get no support in london from the index trackers - only from funds who really want to buy the stock.

cheers

[urgentclick] 22/6/2015 13:24

Lot's of buys kicking in at around 91p

In the FTSE100 I only see Lloyds Banking listed at below 100p.

Not that it means anything, but Glencore is 271p and RangGold Resources is 4410p when I looked. It will be interesting to see how South 32 slots into this index and at what price.

[urgentclick] 22/6/2015 12:40

Today's decline circa 4%. I have been placing some limits to buy some more at crazy discounts.

I want to get a nice holding ahead of the FTSE entry in month 8.

I did some Googling about why this stock is unloved by the city and didn't get any great understanding. It could be just about nobody being particularly interested in it.

[eddieshoestring] 22/6/2015 12:21

Down over 20% in first month ! Anybody got any idea why ? Seems very odd price action for something that was considered priced at "bottom of the range ".Does not look good for BHP reputation either.

[urgentclick] 22/6/2015 11:30

Thanks for that Gateside.

It's annoying to see the price go down around 28% from the initial peak when the offer was supposedly structured to net shareholders a gain. Well we were handed the free stock but BHP shares plummeted in price around the time of the offer to negate the gain.

It's a complex stock to value given the various markets, exchange rates, fund inclination/ability of funds to hold the stock, and the state of the commodities market.

I haven't got a huge holding, but I don't like to see 2% declines everyday. Yet my thinking is that this company is hardly a penny stock!

[gateside] 19/6/2015 10:42

A £5billion market cap will comfortably see it enter the FTSE100 at the next quarterly review. That will attract the Trackers and will boost the share price

[urgentclick] 19/6/2015 09:55

"South32 Limited (ASX, LSE, JSE: S32) (South32) advises that Sue Wilson has been appointed as an additional Company Secretary, effective immediately." Something wrong in the board room needing a quick fix?

[careful] 19/6/2015 09:30

Of 22 brokers 13 are strong buy, 7 neutral, 1 sell, 1 strong sell.

[careful] 19/6/2015 09:21

strange the lack of interest.
At £5bn cap this is a significant commodity company.
maybe there is an overhang from BHP shareholders who wish to sell the shares they inherited.
We need to see some results and a balance sheet to better understand.

[gateside] 19/6/2015 09:07

Lets hope it not a 'pig in a poke'!

[careful] 19/6/2015 07:27

picked up a few here today.
unknown, unloved, cheap as chips.