Indivior is a Four Bagger

[GeoffF100]

Indivior is now worth more than four times its value when it was spun off from Reckitt Benckiser.

[miner1000]

Indivior is now worth more than four times its value when it was spun off from Reckitt Benckiser.

It sounds good, but may not be entirely accurate. When the division was spun out in December 2014, the shares were valued at 132.5p but when they actually listed they almost immediately traded about 150p. They never went back below 150p after early 2015.

I think the price today is about 435p (but I haven't checked the exact number). So perhaps a three bagger?

Anyway, much better than RB that was a smidgen over 51 quid in December 2014 and is now 55 quid today. Which one has the best divided yield though? Which is what we are interested in. Answers on a postcard please.

[Alaric]

It sounds good, but may not be entirely accurate. When the division was spun out in December 2014, the shares were valued at 132.5p but when they actually listed they almost immediately traded about 150p. They never went back below 150p after early 2015.

I seem to recall that the worth of the new shares was about what you might have got for a special dividend, so a few hundred pounds if you held around £ 5000 worth. In the event I later topped up to bring the holding up to a preferred size. It's done well but not 4*.

[Gengulphus]

...
Anyway, much better than RB that was a smidgen over 51 quid in December 2014 and is now 55 quid today. Which one has the best divided yield though? Which is what we are interested in. Answers on a postcard please.

See what Indivior themselves say about dividends.

There's probably more space on this postcard, but I've nothing more to say on it! ;-)

Gengulphus

[Breelander]

Indivior is in no way a HYP share, though many of us hold/held it as a spin-off from a true HYP holding. Most of us only got a few hundred pounds worth of INDV, an uneconomical size to sell. I came to the conclusion that it was totally unsuitable for my HYP so I 'got rid of it' another way.

- a last minute 'Christmas Present' from Reckitt Benckiser meant that my HYP now had one more share ... Indivior (INDV) was demerged from RB. I had nothing much to go on to judge if this was a suitable holding for an HYP (first impressions didn't look promising)...
...After much internal debate (and some external too: https://web.archive.org/web/20141227122 ... e#13138056) I came to the conclusion that INDV would feel more at home in my Value Trading portfolio. Accordingly I made an 'in-specie' transfer to my Value Trading portfolio...

https://web.archive.org/web/20141227122 ... 38923.aspx

That decision turned out to be a good one, based on the INDV 2015 Finals. After paying a dividend that it was obliged to by...

...its prospectus indication at the time of the demerger. Following its review of future dividend policy, Indivior PLC does not propose to pay further dividends in the foreseeable future.

https://www.investegate.co.uk/indivior- ... 00083984P/

At current levels, it's starting to get tempting (and economical) to take a profit in my Value Trading portfolio.

[moorfield]

Indivior is now worth more than four times its value when it was spun off from Reckitt Benckiser.

The "base price" immediately before the demerger on 23/12/14 was 132.50p, and it's price (now) on LSE is 430.20p. Excluding dividends, that's a 3.25x bagger or an XIRR of 42.5% - impressive nonetheless.

[Breelander]

Indivior is now worth more than four times its value when it was spun off from Reckitt Benckiser.

It sounds good, but may not be entirely accurate. When the division was spun out in December 2014, the shares were valued at 132.5p but when they actually listed they almost immediately traded about 150p...

The price I use as a reference value is the SETS auction price at the start of the first day of trading, as quoted in my Christmas Review 2014 that I linked to in my previous post. That makes INDV a '3.6 bagger' at the current price of 432.10p

The price I used for INDV was the initial Uncrossing Trade price of 120p.

[GeoffF100]

Perhaps I should issue a correction here. My INDV holding is now worth more than four times my capital gains base cost. I calculated this using a starting price of £1.325 per share. My RB. shares already had a capital gain before the demerger. Nonetheless, INDV has been a flyer. It is only a small holding for me too, but it is now worth over £1K.

[Breelander]

...Nonetheless, INDV has been a flyer...

Indeed it has, but it isn't remotely a HYP share - its own board has declared it to be zero-yielding for the foreseeable future. The only HYPractical question is how/when to sell it

[GeoffF100]

The HYPractical answer is not until you have to sell it. The Tinkerers have been wrong so far. They may have their day, but I am not parting with any dealing costs, unless it is really necessary. Indivior is doing no harm. It provides a little extra diversification. It is a high risk, potentially high reward share, but has a tiny weight in my portfolio. If it grows, that is good. If it fades away, that saves me trouble of selling it. Doing nothing makes sense here.

[Breelander]

.. It is a high risk, potentially high reward share...

...that "does not propose to pay further dividends in the foreseeable future"- Indivior's words, not mine. No place for it in my HYP, hence removal to 'another place'.

[tjh290633]

According to my records, INDV demerged at 120p in December 2014. I added to my holding in June 2015 at 233p, on the basis that the promised dividends were going to be worth having.

Now that it no longer pays dividends it has ceased to be an HYP share by any criterion. I am holding on to mine until I need to release some cash, and the share price remains on its upward trend.

Had I just held the original shares, the rate of return would have been 62% pa. Having bought more at a higher price, my own IRR is just under 30%. Quite acceptable.

TJH