Wednesday 17 July 2013

Portfolio Sale: Tullett Prebon (TLPR)

The post-holiday profit-taking continues with an opportunistic sale of part of my Tullett Prebon shareholding, bought only in April 2013. So, once again, I demonstrate that my rather dubious 'buy-and-hold' credentials.

TLBR was my largest dividend share holding (and one of my top 3 holdings overall - although none amounts to more than 5% of the portfolio), so I was glad of the opportunity to both take a profit and reduce my exposure.

Taking a 35% profit and reducing risk is all the more indicated as we are shortly off again - this time to the south of Ireland, to enjoy a week or so of what looks like being untypically sunny weather! So it is a good time to clear the decks a little.

I still hold a big chunk of TLPR, bought in March 2013, which is currently also showing a pleasant capital gain equivalent to around 4 years' current income.  Although the share is now yielding less than 5%, I am still optimistic about prospects for a further capital gain. If that fails, there is still the reassurance of a well-covered dividend (current dividend cover 2.4) for the foreseeable future.

My cash holding has now risen to nearly 15% of the total portfolio. As I don't like leaving cash idle I'll have to start looking for some new investment opportunities on my return from Ireland.

Any tips?

[Sale price: £3.5138]

I am not a financial adviser and the information provided does not constitute financial advice. You should always do your own research on top of what you learn here to ensure that it's right for your specific circumstances.


  1. I follow your blog with interest. Many Thanks.

    Not exactly a tip but I am looking at GVC Holdings (GVC:AIM) an Online casino company. Prospective Yield of 6.9% and PE of 8.4.

    What do you think?

    1. As not all AIM shares are eligivle for ISAs/SIPPs (as I understand it), I have not bought anything on that market. I've no view on GVC however, although the metrics you mention are in the right area (but you need to look at cash flow and sustainability amongst other things).

  2. Shanks (SKS) has a dividend yield of over 4%. As a lot of the company's business is in Europe there is unlikely to be a dramatic rise in share price - however this is balanced by the simple fact that waste will always need to be processed. It is an unglamorous industry and Shanks has a reasonably good track record. A possible buy?

  3. Anglo Pacific Group APF
    KCOM Group KCOM
    MDM Engineering MDM
    Laird LRD

    All shares I am adding to right now appreciate they may not fit your risk profile.... But you asked.

    Enjoy your holiday

  4. I was wondering when you were going to sell, as using your yearly x5 income, my sell signs had been flashing for a while. The jury is still out on this trial at the moment.

    Having sold ICP as a test, it did fall post sale but I didn’t buy back although almost did on a couple of occasions. I think ICP has recovered back up again. Missed opportunity? Maybe time will tell.

    The hardest part is finding something better or cheaper. Currently the market has risen, post the minor correction before your jollies. The “bargains” are now harder to find.

    Commercial Property is possibly "relatively cheap" and hopefully should start rising and the miners have taken a bashing but have steadied lately.

    So my tip or should I say latest purchase, (I’ve put my money where my mouth is) is The Renewables Infrastructure Group Ltd (TRIG) This is a play on green energy, wind and solar power. Go to the website for full details.

    This is currently trading around 101p and is expected to pay 6p divi which should rise every year by RPI inflation. The downside is limited (IMO) as the government is subsidising some payments but it also means that it is unlikely to rocket up either. So, a fairly safe, steady income play, that should rise over time.

    Do your own research. Regarding the divi the following is from the prospectus:-

    “The Company intends to pay dividends twice yearly in March and September, as equally weighted interim dividends. The Company is targeting a first interim dividend of 2.5 pence per Ordinary Share in respect of the period from Admission to 31 December 2013, which will be payable in March 2014 and an interim dividend of 3 pence per Ordinary Share in respect of the 6 month period from 1 January 2014 to 30 June 2014 which will be payable in September 2014. The Company thereafter intends to increase dividends progressively in line with inflation over the medium term as follows:

    In respect of the subsequent six month period ending on 31 December 2014, the Company will target a dividend of 3 pence per Ordinary Share, inflated by the increase in RPI over the 11 month period from Admission to 30 June 2014, which, if declared is expected to be payable in March 2015. It is intended that the same dividend will also be payable in September 2015 in respect of the 6 month period ending 30 June 2015. From 1 July 2015, the Company will target dividends payable in March and September each year which will be equal to the dividend paid in the previous year inflated by the increase in inflation over the year to 30 June in the preceding year.

    The projected dividends set out are targets only and not profit forecasts. There can be no assurance that these targets can or will be met and they should not be seen as an indication of the Company’s expected or actual results or returns. Accordingly investors should not place any reliance on these targets in deciding whether to invest in Ordinary Shares nor assume that the Company will make any distributions at all.”

    Would be interested in your or other views or just see what you choose next. Good luck.


    1. Thanks Gerry. I'm wary of anything to do with renewables - it never seems to quite work out, does it?

      I still have another chunk of TLPR - currently clocking up a '3'.

      Yields on some of my ETFs have picked up recently.