This week's "In Conversation" is with Mark Mahaffey (Hindesight newsletter) as we discuss focusing on dividends for long term gains, plus why an inflation band pivot could be a plus for silver miners
Hi Jim. Good question. The original Honeycomb fund merged with the manager Pollen St. i think the merger was not a great idea for the Honeycomb investors as it was far too generous imho to the Pollen St owners. It remains a sound business with decent cashflow but many investors share my negative sentiment.
Many thanks for the swift response David. I have held Honeycomb for income for a long time and it was great; alright the capital dropped a bit through COVID but when the discount went out too far they used buybacks to bring it back in to around 5%. There's normally a discernible reason for share price falls but I could find nothing on this and by todays 40p fall I was about to cut my losses when I seen the Barclays broker recommendation and thought hold on lol - love your work by the way - had a bit of trouble being able to comment tonight but sorted eventually
Hi Jim. Its a tricky one. I disliked the deal which I thought was bad value for investors but I also think even after allowing for this it is cheap. As I said it is fundamentally a sound business but now really an Asset Manager rather than a fund as such. As I say it is still in my lists even though its been a terrible performer.
Pollen Street - you still recommend this and Barclays today started it with a price of 900p. Struggling to understand the share price fall. Since talk of merger began through to today the price has fallen from 945p to 514p. No guidance on why has been given. Previously Honeycomb had a target discount of 5% controlled by buybacks it is now 44% Any thoughts?
Hi Jim. Good question. The original Honeycomb fund merged with the manager Pollen St. i think the merger was not a great idea for the Honeycomb investors as it was far too generous imho to the Pollen St owners. It remains a sound business with decent cashflow but many investors share my negative sentiment.
Many thanks for the swift response David. I have held Honeycomb for income for a long time and it was great; alright the capital dropped a bit through COVID but when the discount went out too far they used buybacks to bring it back in to around 5%. There's normally a discernible reason for share price falls but I could find nothing on this and by todays 40p fall I was about to cut my losses when I seen the Barclays broker recommendation and thought hold on lol - love your work by the way - had a bit of trouble being able to comment tonight but sorted eventually
Hi Jim. Its a tricky one. I disliked the deal which I thought was bad value for investors but I also think even after allowing for this it is cheap. As I said it is fundamentally a sound business but now really an Asset Manager rather than a fund as such. As I say it is still in my lists even though its been a terrible performer.
Pollen Street - you still recommend this and Barclays today started it with a price of 900p. Struggling to understand the share price fall. Since talk of merger began through to today the price has fallen from 945p to 514p. No guidance on why has been given. Previously Honeycomb had a target discount of 5% controlled by buybacks it is now 44% Any thoughts?