It was hoped today there would be time to share some Housing issues that are coming in the UK. Persimmon based on values and the glut First Time Buyers really needing a review based on a number of factors including First Time Buyers, however it'll have to wait as most are now in action.
Anglo Pacific Group (APF) PLC Trading Update is with no surprise, the lack of enticing assets and the returns that are dire. With
jam being implied the
dividend may provide some support when
DRIP (Dividend Re-Investment Plan) or
SCRIP is applied. Unless something materially changes in the asset base or an acquisition of a decent size is made the
dividend will start to look expensive in terms of risk.
Kestrel appears to be the only saviour here....and that's "anticipated" and far from in the bag.
APF with the usual excuses about the commodities market, if one had superior assets even in dire markets the returns are assured. The inferred big deal appears to now be never coming, with limited funds, and a question over whom in this market would support the financing for a larger deal, its not for widows or orphans. Expect APF to give up some of it's more recent gains.
Iron Ore is being bounced around in my inbox with most whom disagreed with common-sense however long ago now surprisingly having a sniff of reality. This morning I was sent this through (Cheers AV)
CHARTS: Iron ore price won't withstand 2015 supply flood. With their views only 10% lower than mine (currently), albeit disagree with their views on
Copper and so would the market with a near 7% drop in the last month.
With the Chinese returning to speculation (one assumes this time with Chinese finance instead of
STAN's /
Citi's :-)) Copper could have some support...but for how long with
Kaisa's missing a payment . Anyone for a Government initiative for social housing? Anyone for a high risk punt on discounted property bonds? The smaller companies appear to be impacted more so...gaining short exposure is difficult though. With little takers for iron ore futures further out, prices are likely to come under further pressure.
JKX (JKX) Oil & Gas PLC announce
Elizavetovskoye Production Update which I suspect will be on deaf ears. The Ukraine has not been forgotten not the limited upside until the issues in the region are resolved. One suspects Putin's weather doll for a severe cold snap to improve his position has taken a vacation.
H&T Group PLC (HAT) Trading Statement is a positive, with some jitters in the market it should be seen as a positively for the Pawnbroker. With Albemarle & Bond (ABM), being
the short and the competition across the sector being seen as a positive,
HAT are in a position to acquire and grow from strength to strength. Net Debt down, an acknowledgement of need for a retail focus has started to reward them. There's a number of ways
HAT could improve their margins, however that's for them to work out. It's a long not without risks, especially with welfare reform, something to consider for all higher cost lenders, albeit
HAT do have
the pledge. The downside is, with limited upside on the current SP save for a buyout (or extraordinary event) its not that appealing.
Atb Fraser
