Standard Life Aberdeen Share Discussion Threads

[cyberian] 25/10/2018 09:49

tornado12 and EI...your inputs are very welcome and appreciated, plus a few others on this bb. The prospective divi issue and whether the current yield prospect appears to suggest a problem to some, one must again remember that the number of shares held now by holders has decreased and will further with the buy-backs...this has already been mentioned.The actual funds being paid out in future in dividend will obviously be lower, and probably better covered from earnings. Like with VOD, the more the shares drop the greater the yield appears based on the last declaration...if SLA share price rises to 400p the yield will drop and appear less OTT and vulnerable to a cut. My main point here is with the former comment that there are less shares being held than a few weeks ago, and that will fall further. So, I think that the brokers are generally quite relaxed and more positive than some posters...unfortunately the market is in a bit of turmoil, but again that presents some opportunities when looking further ahead.

[tornado12] 25/10/2018 08:12

Cyberian, I agree with you the stockbrokers are bullish on SLA and certainly does not reflect the current share price which is more driven by market sentiment in general than facts.

[tornado12] 25/10/2018 04:49

Hold onto your hats we are in for another drop after the DOW rot yesterday. Life’s never dull & certainly still looks like this correct is not over. Any more bad news then the drop will accelerate

[essentialinvestor] 24/10/2018 20:19

I hold MYI, one of their better funds, recently sold my ASCI.
Held SHRS in the past, although MUT looks better in late cycle with
lower gearing. So familiar with a few of the trusts SLA manage.

Added some PRU and would love that lower.

[cyberian] 24/10/2018 19:47

Looks like everyone needs to calm down a bit,and perhaps take a relaxed view on market dynamics....tonight's Evening Standard has a dominant headline in the business section on SLA. Citi group urged investors to take a look at the stock, adding that the firm is "undervalued". It reiterates its BUY rating , highlighting the share buy-backs, platform earnings, and Indian business to be positive. The analysts state that the " valuation is compelling, catalysts for re-rating have begun". They talk about "positive gross flows into the platforms business, and other multi-asset fund strategies". Another reassuring story in the paper is that the World's largest asset manager intends to keep its European and regional HQ in London after Brexit. With 3,000 employees in the City that is in itself very encouraging...hurrah, stay cool!!

[fionascott1234] 24/10/2018 17:30

Just a reminder that the SL. price at demutualisation was 218p and that was 12 years ago.If the drop from 440p when bringing in Aberdeen, (on its uppers) to where we are now was bad then Corbyn in would see a REAL crash.

[essentialinvestor] 24/10/2018 10:27

Schroeders manage it, just looking at their latest AUM update.
SLA is often lumped together with LGEN, AV. and PRU for comparative purposes,
there are markedly different imv, SDR is the closest UKX comparable.

[tornado12] 24/10/2018 09:48

I agree on the AUM falling risk point , it’s a critical unknown for me and where I see the risk in short/medium term. For sure I’m in based on long term dividend performance. I consider the share price rise as a bonus as I use my annual 20k ISA to hopefully let me retire in 5 yrs or so. I think this could/will be targeted for reduction especially if Corbyn gets in .

[cyberian] 24/10/2018 09:47

JP Morgan and other brokers have reminded us here of value of FDFC SL in India and value of Phoenix stake now with a combined value of about £2 bln, and what the remaining Asset management business is worth. This Division generated Profit after Tax of £250 million
in 1H 2018, so assuming that the group's share count will reduce by another 9% as a consequence of the current buy-back program (shares held 2,574,021,492 after the consolidation on Monday)this will lift earnings per share and cut the the total Dividend bill. So maybe we may see the share price rise and obviously the current yield will appear more reasonable if that were to happen...on balance I think that the management have a greater cushion available from any market turbulence which in some ways can help position assets through various hedging strategies etc. Then again the share price may get a further benefit if the new Chairman is the man we expect.

[essentialinvestor] 24/10/2018 08:29

If anyone wants some sector insight, would recommend looking at the Seeking Alpha
articles on Franklin Resources, the stock epic is BEN.

[essentialinvestor] 24/10/2018 08:25

I think it depends on your timeframe here.
You can make a longer term contra-sentiment buy case.
In the medium term it depends if the wider bull market is about to roll over,
or continues.

Regardless of where we are in the cycle, It's absolutely vital SLA address
the AUM falls, any buy case largely rests on that.

[rcturner2] 24/10/2018 07:59

tornado, I think the board probably are taking a more long term view over the company and its prospects, there are always occasional bouts of market fear, they actually create good buying opportunities.

[tornado12] 23/10/2018 19:26

I see SLA brought a further 1,9M shares today. With current market turmoil going on around EU & WW why do you think they continue this share buy back program looking also to their apparent precarious share price trend ? Back to the question as to why they remain confident without a pause to reflect economic changes ?

[tornado12] 23/10/2018 18:19

I have given more thought to the advantages of the B shares in current climate during last 2 months and short term it’s a good help for a bigger share consolidation than SLA had hoped for back in June when share price around 340p ... I don’t believe they planned for the 271p, but that’s what they got and a better share consolidation. The thought about what happens when the shareholders get their 33,99p/share on or after 2/11 is intriguing. I decided to now buy at both points, so today I topped up at 258p and will look again when I get my B share cash

[ygor705] 23/10/2018 18:10

In my view the 34p is a capital transaction driven by a business sale whereas the dividend is driven by day-to-day revenue. Hence eps is always adjusted for consistency. Call me old fashioned, but this is what is driving my view on dps adjustment on share consolidation.

[scrwal] 23/10/2018 17:28

If you want to maintain the dividend received in cash terms all you do is reinvest the B share proceeds. Currently your holding would show a minor increase.

The div per share won't be adjusted for the consolidation or ongoing/future buy backs. By doing this the cover improves as does cash flow since the total div in £s will be 12.5% lower.

[edmundshaw] 23/10/2018 16:07

I don't know what adjustement to the dividend you expect; current yield is about 8.2%, I expect that to be maintained. You got cash for the share reduction, your remaining shares are not expected to get a bigger yield unless the remaining business grows...

[edmundshaw] 23/10/2018 16:03

Phoenix, which SLA is invested in and partners is now yielding 7.9% (forward yield).

Seems a bit barmy...

[ygor705] 23/10/2018 15:06

Don't know if anybody has noticed but the SLA share price is now right on the bottom trend line of its 10year chart. If it falls from here it is almost forecasting Armegeddon. Unless I've missed something, I cannot see a reason for being that bearish.

[ygor705] 23/10/2018 14:58

The question for me is whether SL will adjust the dividend payment upwards to reflect the 8 for 7 consolidation. If they do not it amounts to a dividend cut in my view. I'm not too concerned about the sustainability of the dividend at this stage given that the share capital line is being restructured to suit the company and it is currently awash with cash. There is also the question of whether shareholders will reinvest the 33 p that is about to hit their accounts back into SLA shares at the lower level.

[scrwal] 23/10/2018 12:38

A high yield can mean a dividend cut but there is also the self perpetuating yield conundrum ( my personal view ) in that there is a perception in general that a given sector may need rebasing but this ignores how individual companies are actually affected so share price drifts downward across the board causing some shares to have a higher div but the underlying fundamentals are unchanged and so the mkt goes the yield is too high and a div cut is needed and the share price drops again but it creates an even higher yield and so on etc... This is a very simplistic view but share prices aren't rooted in reality but are very dependant on expectations / brokers views etc.

[nick rubens] 23/10/2018 09:39

Showing a 9% Yield, that usually means a cut is coming.

Is this currently valued at more or at less than the individual companies before they merged?

[wilksey1] 23/10/2018 09:27

can anyone confirm was friday the last last day to buy shares and be included in the b share scheme thanks

[tornado12] 22/10/2018 18:56

My shares have made the 12,5% consolidation but no info on future payment. Hope no delays after 2/11 to repurchase my missing stock