Standard Life Aberdeen Share Discussion Threads

[orinocor] 13/12/2018 09:24

At what price did this lot start buying their own shares lol.
Talk about badly timed.

[cyberian] 13/12/2018 09:09

ramellous...just corrected my own typo on BGUK with a NAV of £260 million and not as I had stated £460 million. BG are pretty good and the Japan fund has done very well.

[nico9] 13/12/2018 08:52

A buy out would be nice if it was around the £5 ps mark lol

[rcturner2] 13/12/2018 07:59

I can remember 2 big income plays getting taken out in the insurance sector. Catnic was one and the other began with an A but I can't remember the name any more. Both were nice bonus take outs by foreign buyers. I am surprised US buyers are not interested in the sector, would be a good take out for a large pension fund in the US.

[wllmherk] 13/12/2018 07:25

I'm well underwater on these but bought primarily for income so I guess the share price fall shouldn't be cause for panic. Having said that SLA is by far my largest holding and I'm down over 30% which doesn't look good, neither does a near 10% yield, this is normally a red flag.
I'm probably clutching at straws here, but, with the weakness in the £ and a current market cap of around 6bln I can't help but wonder if SLA themselves might become a takeover target. Interested to hear the views of others.


wllm

[cyberian] 13/12/2018 00:11

ramellous....BGUK market cap is £249 million so not too sure where you got your
350 million figure from...SLA appear to have simply crossed the 5% declarable figure at 5.96% and 5.86% by additional purchase on 11th December.I stand corrected if wrong....but I see that BGUK has a dividend yield of 3.67%, and the latest NAV of £260 million. Baillie Giffprd have a fairly new US Fund, and a Japanese Fund which are both doing OK.

[spcecks] 12/12/2018 19:18

I also don't expect a Dividend cut ....a better day today hope we have many more like this.
.

[tornado12] 12/12/2018 18:55

I don’t expect Divi cut as I believe they are focussed to maintain the current level. But as many have said on this board they need a clear plan and leadership moving forward. I expect SLA will recover SP, but you know this is also driven from the top

[scrwal] 12/12/2018 17:54

Given the massive reduction in share capital you would think that the dividend wouldn't be cut as the cash payment could be close to 15% lower than the prior year but the company is facing problems with the business integration re Aberdeen and AUM outflows ,eg the Global Absolute Return Strategies Fund, will have a direct impact but also affect market sentiment which is why the price is dragging.

The market is expecting a set of uninspiring results and poor dividend cover. Any stats quoted per share would need tweaking to get a true like for like comparison eg reported eps rises by say 5% looks ok but it should really rise by 10-15% because of the lower number of shares in issue. From what I have read the earnings may actually fall putting a lot of pressure on the dividend cover.

[fionascott1234] 12/12/2018 16:23

Surely they couldn't justify cutting the dividend on the basis of the collapse in the share price and the resultant % difference from the last payout? The Board did say the L & G removal of managed funds was not significant in the long term and only 5% in the short.

[tornado12] 12/12/2018 12:58

As for SLA there’s plenty of down risk here for months to come. There’s also the swing to up side but unless the Brexit fiasco is sorted there’s a stronger downside risk in my opinion in short/medium term. I’m in with 5 figure sum and for long haul hoping they DONT cut the Divi and next business update !

[tornado12] 12/12/2018 12:54

Nothing to do with returning book value to SH. Only to do back door route by reducing share float which for status quo increase EPS. The theory is medium term can sustain or increase Divi returns. Short term it gives very little from any share O have taking same route. Shell are buying 25 M£ every day but makes Jack on share price

[granville23] 12/12/2018 12:45

Just looking at return of capital payment letter and it seems that I got £184.76 return of capital in one hand and lost £176.80 through share consolidation, so gained £7.96. Was this all really worth it. Just seems a pointless exercise and would appreciate if someone can explain it to me

[chinese investor] 12/12/2018 09:08

250p Soon !

[mcunliffe1] 12/12/2018 09:07

Nick, there is no management.

[nick rubens] 12/12/2018 08:39

What exactly were the merits of merging with Aberdeen Asset Management supposed to be? AAM on their own had a quality name. Have they got rid of duplicate directors and management?

[chinese investor] 12/12/2018 08:20

SLA graph also has a bug !

[chinese investor] 12/12/2018 08:20

orinocor,
I noticed that as well !

[orinocor] 12/12/2018 08:18

This is very odd. There is a blue arrow showing beside SLA on my monitor. It looks like ADVFN is playing up again.

[essentialinvestor] 11/12/2018 17:12

I have BBY on a watchlist.

Think a lot of the sector problems have been self-inflicted, to a degree at least.
Companies chased revenue growth through acquisition, often of poor quality.
They lost sight of the golden metric - free cash flow generation.
CNT the poster boy for this. If you look at IRV they had net cash around
2011, prior to the acquisition splurge. As you've rightly referenced compensation
metrics probably exacerbated this behaviour. Well done on the BBY pick up, very nicely done.

[cyberian] 11/12/2018 16:43

BBY one of my old clients at a time when much respected...sadly they lost their way a few years ago (albeit fairly briefly in the scheme of things), and threw out the CEO and a few others. They really did have a management problem at the top but also at other levels where in retrospect I sense that the bonus motivation was ill conceived/structured in securing contracts. I appreciate that contract bidding in the sector has been a nightmare but BBY now have a clearer run at some big projects here and abroad. Now with the new team they are far better organised..I bought when the share price fell to about 150p at the height of their problems, and well rewarded since. I also cringe when they had to see off that Carillion bid...what an escape, but shows you what can and could go wrong. SLA need a new broom in my opinion and some big changes in senior personnel, and get their currently tainted image more efficient in the accountability of the various funds they run...from what some have said on this BB, they are rather sloppy, and their systems need up-grading. All this can be achieved quite quickly if addressed in the right manner...BUT, their clients need to be more impressed than they appear to be at present, and it will take a while for any improvement to be recognized.

[essentialinvestor] 11/12/2018 16:11

cyberian, I was going to mention Kier, but thought you might think it a tad
negative.

They need some decent performance against benchmarks to drive AUM.

Worked briefly in construction a very long time ago, still same old same old..
Wafer thin margins and cost overruns. BBY probably a cut above most - famous last words

[kenmitch] 11/12/2018 16:04

Which shows yet again that share buybacks do not support the share price and don't reward shareholders, except those who got out and with that willing buyer. And of course as buybacks increase eps that's good for Director bonus payments.