Standard Life Aberdeen Share Discussion Threads

[saltaire111] 25/2/2019 13:46

The Directors prefer buy-backs to dividend payments. One dilutes the value of a company - ie dividends. The other is supposed to enhance the value of the share price. The majority of a Director’s remuneration is linked to increased share prices and therefore they always prefer buybacks. So if one has to be cut, their personal preference is to cut back Divi payments.

Salty

[tornado12] 23/2/2019 17:50

The headline numbers in that article make you cringe for sure. But nothing new to what is already the actual situation. Results on 13th will reveal. Protect the divi and have viable plan for sustainable revenue/cutting costs is what is needed in the short term. Keeping my hopes up ...

[scrwal] 22/2/2019 12:36

If the company intends to pay the same cash dividend as last year then the dps will rise because of all the share buy backs and the capital reorganisation.
Keeping the same dps as last year results in a lower cash amount paid so there is some flexibility but not much.

[look alive] 22/2/2019 12:16

I think the Directors could suspend the buy back if they wanted to.I suspect the dividend is safe.

[mcunliffe1] 22/2/2019 10:33

Edmundshaw, Thankyou. I did not know that and appreciate your clarification.
Cheers.

[edmundshaw] 22/2/2019 09:08

MCunliffe, montyhedge I am sure you are aware that as results are due on 13th March SLA is in a closed period. You should also be aware that as such a company cannot legally undertake a variable buyback policy, but must adhere to a pre-set plan - an irrevocable and non-discretionary buy-back programme agreed with its broker.

[montyhedge] 22/2/2019 07:52

Totally agree.

[mcunliffe1] 21/2/2019 23:35

I would agree with you ramellous if we were dealing with rational, intelligent management. However, when the share buyback was announced many months ago I have to assume it was designed, in part, to support the s.p.

It's patently obvious this has not happened. Also, there's been no adjustment of the rate of buyback to take account of the often downward moving s.p.

So, given the lack of management in this whole saga and further, given their stated intent to spend (£750m I believe) a set amount, perhaps given the lamentable state of the business over the past six months, there is NOT an available extra pile of cash for an increased divi.

Wouldn't it be clever to hold-off on the buyback, announce a divi cut, watch the share price tank and then step-in to buy loads of shares on the cheap. SLA that is, not me.

[ramellous] 21/2/2019 23:19

Why would they cut the dividend while they still have funds for buybacks? Seems counterproductive to me.

[montyhedge] 21/2/2019 19:24

Personally I think your living in dreamland if you think this dividend won't be cut.

[stun12] 21/2/2019 18:43

That would imply a massive dividend cut, otherwise the yield would be approaching 10.5%. Was that a reasoned comment, or just a hit-and-run? SLA could borrow the money to take themselves private cheaper than that.

[essentialinvestor] 21/2/2019 14:38

It would not surprise me to see SLA up their PHNX % stake, on the next fund raise
potentially.

[stun12] 21/2/2019 14:35

Indeed. PHNX is a potential FTSE 100 entrant and has picked up very well from lows a few weeks back. My largest holding, though I failed to buy many more at lower levels, inevitably. SLA should really be benefiting more from the rise. Looks like it needs the defib paddles today.

[ramellous] 21/2/2019 12:21

Phoenix are doing well lately. SLA’s 20% and dividends should be having a positive effect.

[wllmherk] 20/2/2019 22:48

thanks Gary.

Would like to see these go on a little run as we seem to be 1 step forward, 2 back,

wllm

[garycook] 20/2/2019 07:45

SLA Short only 0.71% by Numeric Investors from 14/01/2019

[wllmherk] 20/2/2019 07:32

Does anyone know the % of short positions on SLA and if there are any chartists amongst you where support lies?

My biggest holding is decimating my capital, it's a painful watch,

wllm

[eeza] 19/2/2019 16:50

13mill UT at #5p less than last trades just before the bell.

[saltaire111] 18/2/2019 21:13

The buyback will, eventually, turbo charge the share price the chair needs to resolve the CEO situation and then the new management needs to get into the integration cost savings. Get a clear direction on a revitalised strategy and then the share price will really start to motor.

In time we will look back at this period as a good buying opportunity. Just need to be able to buy and hold for a few years. The price may well fall more before it starts to pick up and that’s why drip feeding money in on a regular basis is likely to be the way to go.

Salty.

[mcunliffe1] 18/2/2019 16:51

8th August appears to have been the first purchase. 1.088 million shares bought from Merrill Lynch at between: 330.62p and 326.4p with an average of 330.62p

So, yes Fiona - a massive difference.

I remember back then a number of posters who really felt that such a buy-back plan would bolster the share price Lately, there are a number getting excited by the divi. yield. I hope the latter group are not disappointed by a lower or even a zero dividend.

[fionascott1234] 18/2/2019 15:55

To mcunliffe1. ;Memory may be serving me correctly or maybe not but I think the initial SLA buyback price was £3.22. Big difference......

[tornado12] 18/2/2019 09:57

With share buyback scheme launches since last year I don’t recall SLA changing any tactics and buying significantly more or less shares each day. In case of RDSB there were clear tactics of buying less > 23£. SLA are not responding at all to the share price vs buy strategy and keep going steady with 800-1000 Kshare BB per day. At some point the money will run out. Like many have said we hope the Divi is ring fenced as they fight to sort their leaky revenue books