Your questions answered Vol 2 - IM Private Clients

[AdamIM]

2Btoo said:

Thanks Adam.

Remind me, which of the portfolios is Vertex held in?

ETA: Google tells me that it's IMTechnology. Sorry be being lazy!

Hi-PHT, as noted in my post

[Simpo Two]

JulianPH said:

Essentially the stock is now 20X larger in number and 1/20th the price yet we are still reporting the ‘old’ shareholding (smaller quantity) at the new split price of $123 (rather than the previous $2,460 price).

This is causing everyone to see a 95% drop in valuation on this element of PHE (i.e. not the portfolio overall!), which does not actually exist.

A 95% drop of something that isn't there... everyone please be aware that the Dietz chronograph is a novelty item and is not recommended for real financial activities

[AdamIM]

JulianPH said:

Hi all

Adam is onto the Amazon stock split data feed with the office. We believe the issue is with the data feed we receive from out custodians, but are looking for the exact reason.

Essentially the stock is now 20X larger in number and 1/20th the price yet we are still reporting the ‘old’ shareholding (smaller quantity) at the new split price of $123 (rather than the previous $2,460 price).

This is causing everyone to see a 95% drop in valuation on this element of PHE (i.e. not the portfolio overall!), which does not actually exist.

Cheers

Julian

They'll have Alphabet (GOOG) which will be splitting 20:1 for holders on 1 July record date with an Ex split date of 15 July.

[Mazinbrum]

Intelligent Money said:

Hi All

Apologies for the issues with the PHE feed. The custodian is having an issue allocating the new listing for Amazon post share split. We are working with them to get it fixed and will get there a soon as we can.

Regards

Nik

Was showing similar on my IG app a few days ago so not just an IM issue.

[2Btoo]

AdamIM said:

2Btoo said:

Thanks Adam.

Remind me, which of the portfolios is Vertex held in?

ETA: Google tells me that it's IMTechnology. Sorry be being lazy!

Hi-PHT, as noted in my post

Sorry guv, Ill try to read in more detail in future!

Thanks for the clarification.

I'm still feeling poor though - that Amazon feed is still kaputt! Although I hasten to add that this isn't a grumble!

[Mr Pointy]

We wouldn't have this problem if companies followed Warren Buffet's thinking - don't ever split the stock. Mind you, he created other issues:
The Day the Nasdaq Ran Out of Numbers

[AdamIM]

2Btoo said:

AdamIM said:

2Btoo said:

Thanks Adam.

Remind me, which of the portfolios is Vertex held in?

ETA: Google tells me that it's IMTechnology. Sorry be being lazy!

Hi-PHT, as noted in my post

Sorry guv, Ill try to read in more detail in future!

Thanks for the clarification.

I'm still feeling poor though - that Amazon feed is still kaputt! Although I hasten to add that this isn't a grumble!

Our custodian (who safeguard our client assets and that of many other Investment management concerns-$15B) had an issue with adjusting for the Split.
Unfortunately we can't override the field-well, we could but then we would fall foul of the FCA regulations which require 'reconciliation with our custodian'.

A flag will be added to the dashboard shortly.

Regards

[AdamIM]

Hi All,

FYI, the Amazon split issue has been resolved and the correct position will be reflected in the update tomorrow morning.

The explanation given by our custodian is that the Security ID (ISIN) should change post split but for some reason Amazon kept the same code. They are correct in this assertion. So it's Amazons fault

I suspect most Asset Managers encountered the same issue unless they override their systems/controls.

Regards
AIM

[Phooey]

PorkInsider said:

Nice to see Melrose up ~10% today.

(Apologies to everyone for the plummet now I've said this )

Very nice indeedy. Please don't sell it yet, Julian (PHRecovery)

https://www.thisismoney.co.uk/money/markets/articl...

https://www.melroseplc.net/media/2935/cmd-gkn-aero...

[AdamIM]

Phooey said:

PorkInsider said:

Nice to see Melrose up ~10% today.

(Apologies to everyone for the plummet now I've said this )

Very nice indeedy. Please don't sell it yet, Julian (PHRecovery)

https://www.thisismoney.co.uk/money/markets/articl...

https://www.melroseplc.net/media/2935/cmd-gkn-aero...

The pop is due to the announcement that the company will buy back up to 10% of outstanding share capital, using proceeds from the sale of its Nortek Air division.

Apart from their (Melrose) main business lines being in Metalergy, aerospace and automotive where they make car/plane engines and drive train components, Melrose is a turn-around specialist where they buy failing businesses and fix them-then sell them for material profits.

Norrtek Air was purchased in 2016 for $2.8B, $1.0B net cash inflow was generated during their ownership period, net purchase price $1.8N and they sold the business for $3.6B

The company's balance sheet is in very good shape, currently and the outlook is very positive. Obviously Covid whacked their operations hard (planes and cars) coupled with semi shortages.

We have no plans to amend our Melrose position.

[AdamIM]

A quick update on GGPI (PHT). The company has scheduled a Special Meeting to vote on the Boards proposal to combine their business with Polestar, dated June 22. This is a precursor to their IPO/listing on the Nasdaq.

Polestar is executing very well. They recently signed a deal with Hertz to supply 65,000 cars. Delivery of these vehicles has actually started. The business has an exciting pipeline of new cars and technologies and a full order book.

[Phooey]

AdamIM said:

The pop is due to the announcement that the company will buy back up to 10% of outstanding share capital, using proceeds from the sale of its Nortek Air division.

Apart from their (Melrose) main business lines being in Metalergy, aerospace and automotive where they make car/plane engines and drive train components, Melrose is a turn-around specialist where they buy failing businesses and fix them-then sell them for material profits.

Norrtek Air was purchased in 2016 for $2.8B, $1.0B net cash inflow was generated during their ownership period, net purchase price $1.8N and they sold the business for $3.6B

The company's balance sheet is in very good shape, currently and the outlook is very positive. Obviously Covid whacked their operations hard (planes and cars) coupled with semi shortages.

We have no plans to amend our Melrose position.

Thanks, but you do realise that posting the above you're going to put the curse on the share price now don't you

[Simpo Two]

Phooey said:

Thanks, but you do realise that posting the above you're going to put the curse on the share price now don't you

If you interpret his posts as meaning 'Sell everything I mentioned NOW!' you might be ahead'

It would be interesting to run the numbers and find out... we may have a tipster in out midst!

[JulianPH]

Phooey said:

Very nice indeedy. Please don't sell it yet, Julian (PHRecovery)

https://www.thisismoney.co.uk/money/markets/articl...

https://www.melroseplc.net/media/2935/cmd-gkn-aero...

As Adam say's mate, there is no discussion, let alone intention, to sell Melrose right now!

[Phooey]

JulianPH said:

As Adam say's mate, there is no discussion, let alone intention, to sell Melrose right now!

Hi mate hope you're well! We are talking PHR (Recovery) aren't we?

[Phooey]

Out of interest what is the crack with the United Health (UNH) dividend? And how does this effect people buying the stock (including PHE) going forward - for example if I bought into PHE next week, would I qualify for UNH dividends going forward? I assume so, but just wondered if new holders / purchases receive this new ex-divi UNH have announced. I know nothing about dividend investing btw

[AdamIM]

Phooey said:

Out of interest what is the crack with the United Health (UNH) dividend? And how does this effect people buying the stock (including PHE) going forward - for example if I bought into PHE next week, would I qualify for UNH dividends going forward? I assume so, but just wondered if new holders / purchases receive this new ex-divi UNH have announced. I know nothing about dividend investing btw

The $1.65 dividend is payable on June 28th; for holders of record June 20th. You have to purchase the stock before the 16th (ex-date)to be entitled to the dividend. So any buyers prior to the 16th will receive the dividend.

In our case, the Custodian will receive the $$ and it will be credited to all PHE holders in accordance with their relative holding via a price change in PHE. These $$ will be reinvested according to the model weighting on the next rebalance, so ultimately the dividend, which is just cash will be invested across all holdings in PHE.

Regards

AIM

[Phooey]

Thanks Adam. So what happens to purchase made after June 20th? Do they still receive some sort of divi? Is this a one off ‘special’ divi on the 28th June?

[AdamIM]

Phooey said:

Thanks Adam. So what happens to purchase made after June 20th? Do they still receive some sort of divi? Is this a one off ‘special’ divi on the 28th June?

The dividend is quarterly. Interestingly it has grown every year for 25 years. Over the last 10 its avg growth rate is 26%. If it continues its dividend in 10 years will be $25/share

[AdamIM]

A few small news wires:

Apple acquires the rights to Major League Soccer. A very fast growing audience with around 360k weekly viewers. Large sums being paid. A guaranteed min $250M annually for 10 years. This is part of their growth plan in streaming content/ Apple TV.

Paypal sign a deal with Grub Hub to offer their App as a payment medium. It's not an insignificant tie up-Grub Hum process approx 250M annual transactions some nice fees.

Microsoft acquires Miburo Cyber security research firm. A small transaction relatively speaking however Miburo specialise in foreign state actor threat analysis and their clients are the military and security agencies (Governments).

Adobe earnings on Friday

Regards

AIM