S17
24 Mar 2017
Re: Special dividend It certainly goes down like a lead balloon for me. I've just maximised CGT net gains for 2016/17 so would be paying tax on any sale before 5th April.I was going to sell some after 5th April anyway to reduce my holding as it's now too large a percentage of my portfolio. Now I'm confronted with a lovely big dividend which is going to be taxed, yet we don't seem to have been told the XD date, or have we? It seems that my investment has now effectively dropped in value by the amount oif tax I'll have to pay.I know it's going to give me a really warm glow as I help to reduce the government's deficit, but can the management make such a large distribution without shareholder approval? Apparently they can but it doesn't seem right.
Richygm
24 Mar 2017
Re: Special dividend That's what generally happens, I think. They are, after all, giving you something you have already. I'm not happy with this because I don't have ELTA in an ISA. I'll therefore be taxed on everything over £5k.
marconiman
24 Mar 2017
Re: Special dividend The Northern Investors IT recently repaid about one third of the NAV as a special dividend, rather like Electra. The share price fell by a corresponding amount when it went ex-divi so there was no overall gain or loss for the shareholders. The same will happen with Electra.
Bricklayer
24 Mar 2017
Value? I Bought more today at £49.06pI see this at a net of special = £22.97p of which £10.44p will be cash and NAV minus cash will be £17.15p so these assets will stand me at £12.97p Now the question is are they of the standard of past investments but they will be at a 30% discount to me.This is just my logic for buying more check up and make up your own mind.Peter
Richygm
24 Mar 2017
Re: Special dividend Thanks PZ. You've just brought my attention to the fact that I will have to pay tax on the major part of this div if I continue to hold the share until it's paid, because I don't have ELTA in an ISA. .
Richygm
24 Mar 2017
Re: Special dividend Rocky, I'm not an expert on this sort financial operation, but bear in mind that the board is effectively giving us our own money. When I saw the announcement first thing this morning, I thought "Wow!" that's nice., But then I had a think about it. The money, at present, is part of the company's net asset value and when the cash is paid out that NAV will fall by the dividend amount. I suspect that the sp will also fall. I would keep clear, personally, although someone more financially savvy than myself may advise you otherwise.The other thing I notice in the announcement, is that the board is effectively saying they cannot find anything to use this money on. Are they going to continue to run this co as an investment vehicle, or are they going to run it down? I hope some of the other posters will give us their views on this. Dick.
PeterZmith
24 Mar 2017
Re: Special dividend I'm a little confused. Why pay out almost 50% of balance sheet as a dividend? Wouldn't a tender offer be more normal? Paying out the cash should help the share price except that I guess taxpayers are selling with a view to buying back when it goes XD.
Rockeye
24 Mar 2017
Re: Special dividend Richygm - Have you any idea where the SP will go now - this is completely out of my experience!If I buy tomorrow I effectively will be paying £23 per share net of the SD. Great plan if the SP climbs back but not so good if it falls off a cliff!Any thoughts?Rocky
Richygm
24 Mar 2017
Special dividend That went down like a lead balloon!
Rockeye
03 Feb 2017
Sale of Audiotonix The news of this disposal has created an interesting SP reaction.Is this cash likely to be distributed to shareholders as a special divi or what?Rocky
Charityman
23 Dec 2016
Re: Tender Offer I held on and am pleased with the current SP.Only wish I'd topped up on the dip.
The Dutchman
22 Dec 2016
Re: Tender Offer See my earlier post - gratified to find my strategy worked well. Let's see if SP drops back a bit now.
marconiman
22 Dec 2016
Re: Tender Offer The tender offer seems to have attracted little interest, and has had little effect on the NAV. It all seems like a waste of time to me![link] a pro-forma basis the impact of the Tender Offer on the net asset value per Ordinary Share as at 30 September 2016 would be to increase it from 5,149 pence to 5,175 pence."
Charityman
08 Dec 2016
Re: Tender Offer I've only got 60 shares held since 2007 (bad timing as that was just before the 2008 crash).However since then they've grown steadily so I'm not in a hurry to get shot.They are held in my iii nominee so fairly easy to let them know whether to accept the tender a couple of days before the tender expires.However, expert advice always welcome !
The Dutchman
08 Dec 2016
Re: Tender Offer Given the current SP there is unlikely to be much appetite for the tender offer, given that the max price is 4650. However, the tender has probably helped boost the SP, which I think is now above NAV ( cant check right now as on my mob), so maybe SP will drop back. One strategy would be to offer at 4650, then reinvest elsewhere or back here if SP does fall back. Leave decision to last poss moment though, which ain't easy in a nominee account.
