Lowland 10:1 share split

[Myfyr]

Received from Hargreaves Lansdown (10:1 split like Bankers and Mercantile) …

The Board of Lowland Investment Company plc has announced a reorganisation of the company's share capital.

Subject to shareholder approval at a meeting on 26 January 2022, shareholders as at close of business on 4 February 2022 will have their holding subdivided, receiving 10 new shares in place of every 1 share previously held.

The new subdivided shares are expected to be credited on Monday 7 February 2022. Please note we will credit the shares to your Account upon receipt from the registrar which may not be before 8.00am on 7 February 2022.

We will contact you following the Subdivision to confirm how your holding has been affected.

[scotia]

I can understand the desire to have a 10:1 share split - a share price of £1.33 is probably more convenient for investors than £13.3. But the mystery is how such a poorly performing IT ever grew to £13.3 per share. Over 5 years the total return is 18.5% compared to the FTSE all share of 30.5%. And the share price has declined by 4.56% over 5 years. The management is operating with a gross gearing of 116% - so it looks like they mistakenly imagine that they are skilled investors. Looking at the other Janus Henderson IT which operates in a similar area - namely City of London, I see that it had a total return over 5 years of 22.8%, and its share price has declined by 2.7% over 5 years - with a gross gearing of 110%. How do these ITs survive?
(Data from Hargreaves Lansdown)

[Myfyr]

I can understand the desire to have a 10:1 share split - a share price of £1.33 is probably more convenient for investors than £13.3. But the mystery is how such a poorly performing IT ever grew to £13.3 per share. Over 5 years the total return is 18.5% compared to the FTSE all share of 30.5%. And the share price has declined by 4.56% over 5 years. The management is operating with a gross gearing of 116% - so it looks like they mistakenly imagine that they are skilled investors. Looking at the other Janus Henderson IT which operates in a similar area - namely City of London, I see that it had a total return over 5 years of 22.8%, and its share price has declined by 2.7% over 5 years - with a gross gearing of 110%. How do these ITs survive?
(Data from Hargreaves Lansdown)

They survive because people like me buy them!

LTI needs a 1000:1 split really!

[Dod101]

I can understand the desire to have a 10:1 share split - a share price of £1.33 is probably more convenient for investors than £13.3. But the mystery is how such a poorly performing IT ever grew to £13.3 per share. Over 5 years the total return is 18.5% compared to the FTSE all share of 30.5%. And the share price has declined by 4.56% over 5 years. The management is operating with a gross gearing of 116% - so it looks like they mistakenly imagine that they are skilled investors. Looking at the other Janus Henderson IT which operates in a similar area - namely City of London, I see that it had a total return over 5 years of 22.8%, and its share price has declined by 2.7% over 5 years - with a gross gearing of 110%. How do these ITs survive?
(Data from Hargreaves Lansdown)

The question really is twofold. How does the manager, Janus Henderson survive? (Henderson thought they had the answer by merging with Janus)
And the second question is 'Why do the managers of these poorly performing trusts not look for a better manager?'

Surely the share split is not going to make the slightest difference and in any case, £13.30 is not a particularly 'heavy' price. Plenty of shares cost much more than that and even many ITs are quoted more than that.

Dod

[puffster]

Just a reminder, to avoid heart attacks for those that may have forgotten, the 10 for 1 split happened today...

Regards, Puffster

[Aljie]

Yes, my iWeb account briefly showed my Isa as being up 50% this morning. Result!! Sadly, soon explained when I saw my Lowland holding was showing as £50k rather than £5k. Now sorted out, and it feels like I'm 33% down from my position at the start of the day!

[swill453]

Google Finance hasn't got it quite right, at the moment. Says it went from 13.73p yesterday to 140p today.

https://www.google.com/finance/quote/LWI:LON?window=1M

Scott.

[swill453]

AJ Bell haven't got it right either, showing my holding dropped 90% in value today. I guess they'll sort it out soon.

Scott.