Standard Life Aberdeen Share Discussion Threads

[scrwal] 08/10/2018 12:30

There are many pros and cons for the buyback and I usually don't like them because I would rather have the div in my ISA. What I hate about the consolidation is it affects everyone rather than a normal buyback over time through the market. If I want to reduce my holding I would prefer to do that when I want.

What concerns me is why do they think they have to give £1bn back - couldn't they identify alternative opportunities eg see what Aviva are doing with their spare cash.

Why not pay it back as special dividends over a couple of years thereby keeping the cash a bit longer just in case , wouldn't have hurt the business.

Also the institutions seem to be happy to accept what is effectively a disposal of existing holdings albeit the % held is constant Why? Are they not going to reinvest that money in SLA shares ?

Anyway mini rant over but I expect those who prefer buy backs over special divs are happy which is fair enough because that is their investing ethos which differs from mine.

[cyberian] 08/10/2018 12:22

EI...appreciate your input, and agree that current share price trend is an issue, however, I have again looked at their Summer 2018 Investor Relation report and like with most brokers saw little that was that disturbing. Is there some positioning going on in the share price before next Monday? I haven't a clue, but guess will just hold tight until matters settle down as they did before. More volatile equity conditions may well help as you say, but with a balanced equity portfolio I will probably ride-out the current situation after some lightening-up in some sectors.

[essentialinvestor] 08/10/2018 11:34

If you wanted to make a contra sentiment bullish case..
more volatile equity conditions may help active asset management models ..

I've checked their financial calender and there is no mention of another trading
update this year.

[cyberian] 08/10/2018 11:24

EI...OK, a bit of doom and gloom at present, but looking at the most recent Investor Relationship update which is very recent things do not appear too bad. Interesting comment about AUM...a bit of swings and roundabouts as some areas are seeing a positive inflow...but hey, not a total disaster and the balance of exposure is hopefully being well managed. Again the possible appointment of Sir Douglas Flint could be a bonus as the new Chairman. It maybe interesting to see if there is any interesting share price movements before next Monday...at current levels there could be some interest...again the tax free benefit into my ISA funds is welcome (33.4p), despite a possible 10 for 11 consolidation. So far have yet to see any recent panics in Broker ratings....

[essentialinvestor] 08/10/2018 08:37

Another element to keep in mind, the stock market
Value of HDFC Standard Life has come off sharply since the summer, very sharply.

[cyberian] 07/10/2018 16:38

From the Sunday Times Business section front page they appear hopeful that Sir Douglas Flint will accept the Chairman role even though they have 2/3 strong candidates. He would be seen as a strong positive with the new direction in place....could help reverse the AUM trend, and push some new initiatives and attract/retain a strong team.
On the return of capital issue I am happy for the structure and strategy now formally approved...it may take a few weeks to settle the share price down, but the the B shares payment through my ISA is very welcome and the share consolidation will again be fairly neutral or perhaps better than some expect...PLUS, there follows (or as they say it allows) the ability for a further buy-back of up to £575 million value of shares. The current £175 million value of buy backs has now continued after suspension of a number of days due to effect on holders reinvesting their recent divi. Again it is difficult to judge or really anticipate how the share price will behave in the present environment over the next few weeks, but the timing of action on 15th and 19th October,and then early November, will hopefully see some stability and calm for current holders.

[tornado12] 07/10/2018 14:13

I am new to this board but have been investing for many years. In last 3 yrs I have focussed on shares that are a little stressed like now the case of SL.A. I can see their challenge in changing their business plan, but confident such a business can succeed. Now I will invest as the board is clearly confident investing 1,7 B£ into a share buyback or 18% of their MCap. Do you know any other FTSE100 doing the same today ? Everything is a risk but I like their approach to protect the shareholders

[essentialinvestor] 06/10/2018 17:19

Concern over their longer term earnings potential,
I think that is the crux. People are questioning whether existing profitabilility is sustainable. And for some, the answer may be No.

[mcunliffe1] 06/10/2018 17:16

scrwal, I like most of what you say and appreciate fully that in normal circumstances the presence of buyers in a stock will cause a rise.
So, why is the stock falling even with the buyback in progress?

[scrwal] 06/10/2018 16:24

There should be no theoretical benefit but actual market price movements especially the ex capita one may, or not , create a benefit.
The annoying thing for me is that I currently have no intention of selling my holding but in order to maintain the £ div received I will have to fork out a bit more than the cash I receive because of stamp duty and the spread plus there may be a small price rise as people like me top up their holdings.

[mavis5] 06/10/2018 14:24

Is there any theoretical benefit in buying more before 19 Oct - or will this be the same as any other divi payment (ie share price decreases by amount of the payment)?

[oilretire] 06/10/2018 12:02

Timetable issued after hours for the B scheme....


The Company confirms that regulatory approval has been received to return GBP1.0 billion to shareholders by way of a B share scheme accompanied by a share capital consolidation. The Record Time for the B share scheme will be 5pm on 19 October 2018. Shareholders will receive a minimum of 33.4p per share.

The Company expects to announce the share capital consolidation ratio and the finalised return in pence per share on or before 15 October 2018. Shareholders should receive the associated payments and, where relevant, new share certificates, from 2 November 2018.

[mcunliffe1] 05/10/2018 16:45

If they spend enough of OUR money buying back shares and cancelling them a smaller profit will be shared across far fewer shares so I suspect maintaining a divi at similar levels will work.
A crackin’ way of hiding poor performance but highly insightful management tactic.

Kind of thing that might be dreamt up on a golf course or whilst fly-fishing.

Stunning.

[peterbill] 05/10/2018 10:09

Added some at 299 ... yield attractive if they can maintain the divi ... big if

[action] 03/10/2018 08:52

Support level 295, 279, 265.

[eeza] 02/10/2018 16:41

All insurers (or tarred with the same brush) have been caned again.

[cmackay] 02/10/2018 12:45

300 breached, I will consider averaging down but not here.

[essentialinvestor] 02/10/2018 10:08

You could not make it up.

[mcunliffe1] 02/10/2018 10:00

Don’t forget the fishing meijiman. They are fishing buddies.

[meijiman] 02/10/2018 09:14

Yes they're lovin it ...the gravy train to end all gravy trains. Lunching/boozing/golfing what's not to like.
AUM is collapsing you say...never mind its golf today.

[essentialinvestor] 01/10/2018 23:19

But not for the joint and highly paid CEO's,
for whom it's worked out lovely.

[warranty] 01/10/2018 22:38

Clearly the LLoyds/Scottish Widows issue has also hit the shares but certainly the tie up with Aberdeen has so far been a total disaster for us shareholders.

[nick rubens] 01/10/2018 15:10

Thank you Essential Investor, I hadn't noticed that. I would have preferred both a mix of insurance and asset management, so I'm quite surprised to hear that.

[its the oxman] 01/10/2018 14:58

Set to break 300p - they need to demonstrate some meaningful growth or the market will keep selling them off.