Tp Icap Share Discussion Threads

[rcturner2] 08/9/2021 07:47

It is like football fans who defend their team no matter what. Some people when they buy a share they lose all objectivity and all news is good news. Well that statement yesterday was not good news. Revenue decline + margin decline is bad news. Why do people hold on to shares in companies that are doing badly? Isn't the whole point of investing to buy shares in companies that are doing well?

[spectoacc] 08/9/2021 07:42

Come on @RCTurner2 - tell us what you really think :))

Thanks for the many posters on here, both bull & bear - has kept me out of what would have been a loser.

Get the impression the EU has stymied TCAP's business model - and hard to tell how temporary that is.

[daemonfunds] 07/9/2021 19:26

@coxsmn - agreed. nothing here changes from the trading statement where a hit was already seen. they have a couple of growth options as you point out, plus cost savings to achieve. management have a huge task in front of them. keep an eagle eye on their execution over the next six months.

[coxsmn] 07/9/2021 17:18

Were you not expecting revenue to be down compared to the 'exceptional' last year and from the guidance given in the recent trading statement.With the liquid acquisition, crypto currency coming late this year and cash reinvestment in the business the trajectory is firmly set on future growth.In the meantime collect the dividend.

[rcturner2] 07/9/2021 16:46

I sold mine at 195p timed dead on 8.00. With an RNS like that I am on my broker site ready as soon as the market opens.

[coxsmn] 07/9/2021 16:35

I always think it strange why people sell when a share price is low but buy when its high.

[rcturner2] 07/9/2021 13:49

Exactly, there are much better companies such as LGEN paying much more secure dividends.

[brucie5] 07/9/2021 12:20

You might be lucky at this rate. So long as they return a decent amount of their cash to shareholders, there will be a floor at some point. Just a case of what discount applies. Anything under 7% may not be enough for the market, when you can get quality insurers giving that.

[rcturner2] 07/9/2021 11:51

I would probably buy back in if it went to 160p.

[brucie5] 07/9/2021 11:48

I'm out. Just got 1.79, so I expect it'll bounce back this evening.
;(

[tdor] 07/9/2021 10:49

Same here. And putting in a buy order @ 1.67 just in case people sell it that low. The dollar might remain an issue moving forward. On the other hand, I can imagine high(er) volatility / volumes - which is what they need - over the next 12 - 18 months. A nice hedge, especially at current valuation, for my portfolio.

[bluemango] 07/9/2021 10:19

Fwiw I'm sticking with them. I guess it's a subjective view as to whether they can deliver the planned cost synergies and go on to recover earnings & dividend to close to their former level.

"While trading conditions have continued to be challenging during the first half of 2021, we have made progress on executing our growth strategy which will transform our company to deliver sustainable earnings term growth over the medium term"

[dhoult12] 07/9/2021 09:39

Sold out this morning. Basis for improvement seems to be "cost synergies" fro. liquidnet acquisition.. which given "cost synergies" for ICAP voice brokers didn't exist despite all the waffle at the time and it's the same management doing this one.. don't have much confidence they can pull it off. Add in existing voice brokerage is declining and not ideal.

Good luck all who remain!

[rcturner2] 07/9/2021 09:04

They are committed to paying approx half the basic earnings as the dividend. 10p basic and 4p dividend in the interims. Final could easily be another 4p or maybe 6p.

But the fact is that the dividend is obscuring the fact that the company is simply not performing that well.

[bluemango] 07/9/2021 08:56

#400 Correct, which would suggest there shouldn't be much further to fall. But I'm not surprised at the drop, there's many assumptions in that 6.6% yield and those results were disappointing.

[brucie5] 07/9/2021 08:56

Thanks for the above. Still seems to bouncing off the bottom on a 2 year view, with 1.80 as support. Maybe this is already discounted? But we'll see.

[coxsmn] 07/9/2021 08:52

and 6.6% yield based on current sp

[bluemango] 07/9/2021 08:45

On that basis, a final div of 8p would give full year 12p, slightly below Shore Capital's estimate of 13.75p FY 2021.

[bluemango] 07/9/2021 08:42

Before the dividend was 'temporarily' halved, it used to be weighted
one third interim, two thirds final (5.6p, 11.25p)

Whether that's a useful guide looking ahead, remains to be seen.

[brucie5] 07/9/2021 08:30

Anyone able to explain the dividend situation here, now? TiA.

[dmore2] 07/9/2021 08:29

poor results but not the end of the world, will take a while to turn around it seems

[rcturner2] 07/9/2021 08:12

I binned mine as soon as the market opened. Very poor results.

[brucie5] 07/9/2021 08:06

Question now, will this be a retesting of the bottom, or new low. If dividend maintained I'm thinking the former.