The Lemon Fool

Here’s a fast ball for you all. I have decided to go for my reserve option and that is to top up my WPP holdings instead of option 1a and 1b, ie topping up Marston’s or buying Greene King. My reasoning is that WPP are a class act, with a well covered and decent 5% plus yield. The leisure companies were a risk to far for me on this occasion. Thank you all for your wise words and input.

Ian.

idpickering wrote:
My reasoning is that WPP are a class act, with a well covered and decent 5% plus yield.

And they go ex-dividend on 4th October......

Itsallaguess

And you don't pay stamp duty on them ...

TUK020 wrote:
Not mentioned pension deficit yet.

Hi Ian

Thank you for updating us on your thoughts and topping up WPP as you state after, an impressivel and glorious amount of Pickering™

Greene King was mentioned earlier in this thread and then the pension deficit statement from TUK020 above. I noted that Greene King have offloaded a chunk of pension deficit to Scottish Widows as detailed here http://www.pensionsage.com/pa/Greene-Ki ... Widows.php and are now in surplus with their pension scheme with assets of £859.2m compared to liabilities of £845.6m

Cheers, OLTB.

Thanks for the vote of confidence chaps. Why no stamp duty.? As for the ex divi date, it’s my birthday on 3 Oct funnily enough. I will be 57.

Ian.

WPP are registered in Jersey...hence no stamp duty ( ditto PFC).

monabri wrote:WPP are registered in Jersey...hence no stamp duty ( ditto PFC).

Thank you for that. I wasn’t aware of that to be honest. I didn't notice the lack of stamp duty on my initial purchase on 9 Apr 18. Bad of me really . Maybe that’s proof that keeping an eye on 32 holdings is enough for me.

Ian.

monabri wrote:Slide 25. ( Segmental Analysis)..maybe they should stop making beer?

Thin margins, but it seems to be where all their growth is coming from, and it appears to be low capital intensity.
Maybe they should stop opening new pubs, pay down their debt, and work out how to improve their margins.

TUK020 wrote:

monabri wrote:Slide 25. ( Segmental Analysis)..maybe they should stop making beer?

Thin margins, but it seems to be where all their growth is coming from, and it appears to be low capital intensity.
Maybe they should stop opening new pubs, pay down their debt, and work out how to improve their margins.

Thanks TUK020. It was such doubts that caused me to back away from my planned top up of my Marston's holdings. Happy to hold, but that'll do for me.

Ian.

idpickering wrote:

TUK020 wrote:

monabri wrote:Slide 25. ( Segmental Analysis)..maybe they should stop making beer?

Thin margins, but it seems to be where all their growth is coming from, and it appears to be low capital intensity.
Maybe they should stop opening new pubs, pay down their debt, and work out how to improve their margins.

Thanks TUK020. It was such doubts that caused me to back away from my planned top up of my Marston's holdings. Happy to hold, but that'll do for me.

Ian.

I am looking forward to the year end results next month. I am hoping we will be pleasantly surprised. This one for me provide a useful diversification a good yield and I quite like the fact the valuation is underpinned by the real estate.

it's a low margin business, but has some decent brands and marketing agreements, biggest risk is interest rates which hopefully are being hedged......

I'm a LT holder.