Honeycomb turns bitter
I would be interested in anyone's opinion about the latest announcement from this trust. Basically a trust that deals in debt, very successfully, to produce 8.3% yield and very little growth, suddenly changing to merging with the managing company and adding private equity investing to the mix, along with the fees earnt by the managing company. Yield dropping to 5.2%+ in 2-3 years. No apparent exit for shareholders at NAV -2% or so. It's dropped 50p if anyone was planning to wait for the next 20p divi.
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This company is a demonstration of why small shareholders don't trust the City. A cabal of institutional shareholders decide to completely change the strategy without consultation. Would be okay if an Exit strategy had been offered. Offering to '..consider reactivating the Company's share buyback programme ' doesn't really cut it for me. Buybacks cut the management fees - I can't see that happening.
Was it Harold Wilson who coined the phrase 'The Unacceptable face of Capitalism?'