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Pearson 1st Quarter Trading Update

Practical discussions about equity High-Yield Portfolios (HYP) for income
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ZipserSir
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Re: Pearson 1st Quarter Trading Update

#138543

Postby ZipserSir » May 12th, 2018, 3:07 pm

Think I will sell a part of my holding on Monday. The dividend outlook is relatively unpromising and I hope there will be better possibilities elsewhere. Still have a sizable holding in a different account and it would be nice to see the current price bull run continue to the point where I can get my original investment back.

UncleEbenezer
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Re: Pearson 1st Quarter Trading Update

#138554

Postby UncleEbenezer » May 12th, 2018, 3:49 pm

You folks whose investing style is to buy high and sell low help provide a real opportunity for others. Thank you.

ZipserSir
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Re: Pearson 1st Quarter Trading Update

#138560

Postby ZipserSir » May 12th, 2018, 4:04 pm

UncleEbenezer wrote:You folks whose investing style is to buy high and sell low help provide a real opportunity for others. Thank you.


Actually, I bought low and am selling high, so you can't thank me, I'm afraid :roll:

kempiejon
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Re: Pearson 1st Quarter Trading Update

#138579

Postby kempiejon » May 12th, 2018, 5:11 pm

ZipserSir wrote:have a sizable holding in a different account and it would be nice to see the current price bull run continue to the point where I can get my original investment back.

So not quite high enough yet?
As an aside I managed to recoup the capital loss on my Petrofac HYP shares by buying some for recovery. I was lucky to make that choice towards the bottom and topping up throughout some of the first flush of recovery. Those additional tranches of PFC were not bought with HYP principals and I have a plan to exit but the yield does make the new holding not unattractive from an income perspective, I am more likely to sell on when I can find another attractive trade to redirect the cash to.
I like the Pearson digital reinvention recovery story but for income it's been a dog, still perhaps from here the dividend trajectory is upwards.

ZipserSir
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Re: Pearson 1st Quarter Trading Update

#138609

Postby ZipserSir » May 12th, 2018, 7:43 pm

kempiejon wrote:
ZipserSir wrote:have a sizable holding in a different account and it would be nice to see the current price bull run continue to the point where I can get my original investment back.

So not quite high enough yet?


I bought at two different times - win some / lose some :roll:

kempiejon wrote:As an aside I managed to recoup the capital loss on my Petrofac HYP shares by buying some for recovery. I was lucky to make that choice towards the bottom and topping up throughout some of the first flush of recovery. Those additional tranches of PFC were not bought with HYP principals and I have a plan to exit but the yield does make the new holding not unattractive from an income perspective, I am more likely to sell on when I can find another attractive trade to redirect the cash to.


Ditto Petrofac :cry:

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Re: Pearson 1st Quarter Trading Update

#139033

Postby SDN123 » May 14th, 2018, 5:59 pm

Arborbridge wrote:Pearson share price is almost begging me to take some action. I see the forward yield is now down to my 2% limit, but with 2.5% pencilled in for next year: i.e. dividend increasing which is, after all, what we are looking for. It is now the lowest forward yielder I have - even lower than Tesco, and the latter's dividend is likely to increase faster next year.

As a result, I will today set a stop loss at a price which I have yet to determine. It will be pretty tight, though, so is likely to trigger if the price does not continue increasing.

Decision made.

Also: topping up NG tomorrow.


Arb.


I have been looking for an exit point from Pearson for a while (low yield; the company no longer in the businesses that I valued when I originally bought it; the company no longer run by the same people was when I originally bought it.)

I hadn’t researched or used stop losses before, and so Arb’s post directed to a very useful new technique for me.

I probably set the stop “too tight” but have just sold out at 905p and a bit - which suits me fine.

Now to find somewhere to put the new cash (SLA and the big pharas are the favourites right now according to HYPTUS.)

Thanks Arb,

SDN123

Arborbridge
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Re: Pearson 1st Quarter Trading Update

#139393

Postby Arborbridge » May 16th, 2018, 4:22 pm

SDN123 wrote:
Arborbridge wrote:Pearson share price is almost begging me to take some action. I see the forward yield is now down to my 2% limit, but with 2.5% pencilled in for next year: i.e. dividend increasing which is, after all, what we are looking for. It is now the lowest forward yielder I have - even lower than Tesco, and the latter's dividend is likely to increase faster next year.

As a result, I will today set a stop loss at a price which I have yet to determine. It will be pretty tight, though, so is likely to trigger if the price does not continue increasing.

Decision made.

Also: topping up NG tomorrow.


Arb.


I have been looking for an exit point from Pearson for a while (low yield; the company no longer in the businesses that I valued when I originally bought it; the company no longer run by the same people was when I originally bought it.)

I hadn’t researched or used stop losses before, and so Arb’s post directed to a very useful new technique for me.

I probably set the stop “too tight” but have just sold out at 905p and a bit - which suits me fine.

Now to find somewhere to put the new cash (SLA and the big pharas are the favourites right now according to HYPTUS.)

Thanks Arb,

SDN123


Well, here's a funny thing. I didn't actually set the stop loss as something else distracted me. I then went away for a few days, and completely forgot the whole Pearson discussion and what I had intended to do. Didn't cross my mind until just now when I thought to look at Lemon Fool.

Maybe I should do something about it - soon- but this episode also reminds me why HYP appealed to me when I retired: i.e. a technique which enabled one to go away for long trips and forget about investment, leaving it to take care of itself. Perhaps I should stop reading LMF for six months altogether and forget about all the discussion, ebb and flow and company news. Just let HYP do the job it was designed for - I am quite sure it would survive!

Arb.

SDN123
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Re: Pearson 1st Quarter Trading Update

#139421

Postby SDN123 » May 16th, 2018, 5:50 pm

Arborbridge wrote:

Maybe I should do something about it - soon- but this episode also reminds me why HYP appealed to me when I retired: i.e. a technique which enabled one to go away for long trips and forget about investment, leaving it to take care of itself. Perhaps I should stop reading LMF for six months altogether and forget about all the discussion, ebb and flow and company news. Just let HYP do the job it was designed for - I am quite sure it would survive!

Arb.


Well if you, and others before you, disappeared I wouldn’t have found HYP - so thanks for staying this long!

There is a funny contradiction on this board between those who say “I do this because I could leave it alone for six months” and those who say “I don’t want more shares as there would be too much administration”.

I suspect the difference are due to:

- how actively you chose to monitor shares in order to top-up / tinker / make new investments; and

- how many of your shares are tax sheltered (little or no “compulsory” paperwork) and how many are exposed to tax (legal reporting requirements plus tax management tactics).

SDN

Arborbridge
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Re: Pearson 1st Quarter Trading Update

#139426

Postby Arborbridge » May 16th, 2018, 6:11 pm

SDN123 wrote:
There is a funny contradiction on this board between those who say “I do this because I could leave it alone for six months” and those who say “I don’t want more shares as there would be too much administration”.

I suspect the difference are due to:

- how actively you chose to monitor shares in order to top-up / tinker / make new investments; and

- how many of your shares are tax sheltered (little or no “compulsory” paperwork) and how many are exposed to tax (legal reporting requirements plus tax management tactics).

SDN


And that contradiction is abundantly evident in at least one person - i.e. me! However, it's possible to use the HYPTUSS and record one's dividends etc without all the fussing about the details of whether this or that company should be avoided.

At the heart of this is the "to sell or not to sell" debate - because if it's all much of a muchness and "trading" makes little difference, then one might as well go to sleep on it - save for as much record keeping as one wishes to do. That's the point on which I was reflecting, rather than record keeping. In my view, record keeping is almost a voluntary activity if everything is inside a tax shelter. All one needs to know is that there is sufficient income arriving in a timely manner!

In my case, the record keeping was for two purposes: to see if HYP would provide the income necessary in retirement, and to compare with whatever else I might do with the capital. Of course, that's a never ending story, but I'm happy to continue with it for the foreseeable future.


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