Gladstone Capital GLAD - Share Chat

I didn’t know you actually wanted to know that sorry :man_facepalming: I just didn’t understand what was said :joy:

1 Like

Net assets value at 31st March was $9.49 per share so we’re paying a premium over this.

Gladstone are in the loan business with 90% of loans at floating rates while 90% of debts are fixed so they stand to gain nicely if rates rise a little. The risk would be on defaults as they tend to loans larger amounts as opposed to spreading risk. They’re longer term loans that often support private equity companies.

I like the company and have it as my largest dividend holding. How about we find a way of stopping the 15% with holding tax @adam :wink:

Lastest earnings call from March 2022

2 Likes

@NeilB @Big-g are either of you concerned about their cash to debt?

They have around 1.43mill in cash, but 214mill in debt…

3 Likes

I’ve always been comfortable with it, so long as they run a lean ship.

Much of that debt is at fixed rates while it is lend out at variable rates (LIBOR link I believe)

3 Likes

Bit surprised at the depth of the recent dip considering how stable GLAD has been recently. I guess it’s a topping up opportunity.

1 Like

I topped up some others but really I should topped it this going sub $10 :man_facepalming:

1 Like

I’m starting to re-evaluate my holdings in GLAD, it’s nothing to do with the company but is other factors. As the Pound continues weaken its is eating away at the returns. The 15% withholding tax on US stock also damages the returns.

In the past 12 months the pound has slide 18% against the dollar, while I don’t normally worry about FX I hold GLAD in my SIPP and planned to for years.

Any thoughts? Am I over reacting, bolt the gate after the horse has bolted?

3 Likes

Don’t know if I might be confusing/misunderstanding things, so someone please correct me if wrong, but isn’t a stronger dollar better for the dividends received because of the currency conversion back to sterling?

In that $10 now (with the withholding tax taken already for simplicity) would convert to £8.35, $1/£0.835

vs

$10 around April last year being £7, $1/£0.70

Also depending on when you bought the shares, selling them would be a net positive capital returns wise, if you bought when sterling was stronger and sold now with the dollar being stronger.

There are obviously other factors to take into account but from an FX point you might actually be better off at the moment, Freetrade seem to take the currency fluctuations into account when showing the percentage gain or loss for non-sterling shares

8 Likes

@woodyblade is correct. The strong dollar should be good for you. Increases the amount you receive from dividend payments in GBP and when you sell, you get more GBP.

6 Likes

That’s useful to know, I hadn’t considered the way the exchange rate and having a stronger dollar affects dividends in that way.

2 Likes

When I said I don’t worry what I should have said is understand! :no_mouth:

FX rates have always been a bit of a black spot. I’m very happy to have been wrong, thanks @SebReitz & @woodyblade :facepunch:t2:

3 Likes

They pay out every month so just sit back and let the money come in. Don’t be greedy lol

I’ve often wondered how currency fluctuations affected dividends etc…
It never concerned me much as I believed time would smooth out any large swings.

This clears things up nicely.

:+1:

1 Like

The 15% withholding tax on US dividends is a nuisance but not enough to put me off.

2 Likes

Better than the 30 percent that people not in the uk pay i believe.

Should be 0% in a SIPP bit it’s isn’t.

3 Likes

@NeilB are you asking us for advice :thinking: bloody hell your the oracle lol,

I have a question @NeilB
I’ve bought stock for a higher share price than currently worth but I’m up in profits :thinking: is that cause of the dollar

Example the fx price was like $1.31 and now it’s $1.21-$1.23

Is it anything to do with this?

1 Like

I have plenty of black spots in my knowledge, it’s an opportunity to learn. Fun fact is I don’t really know how many days there are in each month without going one by one and thinking if I’ve ever heard of June 31st!

2 Likes

As previously proved FX rates are far from my strong suit but it would be the most likely solution. Freetrade displays all your current prices with the FX taken into account, this is why you’ll see US stock moving a little while the market is closed.

3 Likes

April sept Nov and Feb (28) it’s come with ages Thet kind of knowledge :rofl::rofl: