Author Archives: Frostie

Royal Mail to float – what interested investors should do

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The biggest privatisation for two decades

 

·         Royal Mail to float

·         What interested investors should do

·         IPO Q & A

Today the Government have announced plans to float the Royal Mail in what could be the largest privatisation for two decades. The state-owned postal service could be valued up to as much as £3 billion in an initial public offering (IPO) taking place this year.

 

Richard Hunter, Head of Equities, Hargreaves Lansdown;-

““The success of the Direct Line Group & esure share offers has reignited private investor interest in IPOs. The offer of shares to the public is reminiscent of the float of British Gas in the 1980’s which was accompanied by the “Tell Sid” Campaign. Shares will be marketed to the public and any investors aged over 18 will be able to apply for shares.

 

What interested investors should do

 

Richard Hunter

 

“We don’t have the details of the IPO yet. Investors can register their interest with a stockbroker now and when a prospectus and application pack becomes available they will contact you with all the information needed to invest.”

 

Tell Sid? – Investing in an Initial Public Offerings (IPOs) Q & A

 

From the first “Tell Sid” privatisation of British Gas in the 1980s, flotations and Initial Public Offerings (IPOs) have always been of interest to the investor. Richard Hunter, Head of Equities, explains how they work.

 

What is an IPO?

 

An Initial Public Offering (IPO) is where the owner(s) of a company sell all of part of their stake to the public in order to raise money. This cash can then be used to grow the company or simply be returned to the owners. An IPO is also commonly called a flotation.

 

An IPO may only be made available to institutional investors or to a mixture of private (retail) and institutional investors. An IPO happens in three stages.

 

1.            The Intention to Float – The company announces to the stock market, public stating they wish to float the company

2.            Preparation of Prospectus – The company will then prepare and release a prospectus. This aims to be the definitive document relating to the launch and will describe the offer in detail. Applications to buy shares in an IPO should always be made on the basis of the information contained in the prospectus

3.            Sale of shares – The company and their advisers invite applications for the shares. The IPO will be open for a fixed time known as the Offer Period

 

When will the share price be known?

 

In some cases fixed price offers are made and the investor will know the share price in advance. Alternatively the share price will not be known until the date the company floats. In some cases the company will provide an indicative range for the flotation price of the shares e.g. £2.00 to £2.20. The precise price won’t be fixed until near the listing date and may depend on demand for the shares. Once the share has floated on the open market, the price will the rise and fall as all other shares do.

 

Why would investor want to get buy shares at IPO?

 

An IPO allows investment in a company when it first enters a stock market.

 

When will shares go on sale?

 

The timetable for an IPO generally spans four weeks. An Intention to Float announcement is made and then around two weeks later the prospectus is issued and the offer period starts. It is during this period investors can apply for shares.

 

Where can investors get a prospectus for an IPO?

 

Interested investors should contact a stock broker who will be able to register your interest in receiving a prospectus. In some cases a stock broker will provide research and updates as information becomes available. For example, Hargreaves Lansdown has been involved in the majority of IPOs over the last 30 years.

 

How do investors buy IPO shares?

 

Investors can buy IPO shares through a stockbroker. A share dealing account should be opened and money deposited to buy the shares. This can be done online or over the telephone using a debit card, or alternatively a paper application accompanied by a cheque can be used.

 

How many shares can investors buy from an IPO?

 

There is normally a minimum number – If the offer is oversubscribed investors may not be able to buy all the shares they want to buy. If this is the case the balance of money can be used to buy other shares or can be refunded.

 

Can investors buy IPO shares through an ISA, SIPP or Junior ISA?

 

In some cases money in an ISA, SIPP or Junior ISA can be used to buy IPO shares. This depends upon which market the company is listing upon and the type of IPO.

 

What dealing costs are paid?

 

Buying IPO shares is often free for investors.

 

Hargreaves Lansdown’s charges are as follows:

 

IPO share purchase                         Free

Share account charge                     Nil (Other charges to hold shares may apply e.g. in ISA and SIPP (ISA – 0.5% capped at £45 a year, SIPP – 0.5% capped at £200 a year).

 

Selling IPO shares will be subject to a dealing charge from £5.95 and no more than £11.95 (online).

 

Buying IPO shares after the offer period, when the shares are available in the market, will be subject to a dealing fee of no more than £11.95 (online) plus stamp duty of 0.5%.

 

Is there a minimum holding period? How quick can an investor sell?

 

There is no minimum period, but generally it takes 3 working days from the date of the float to issue the shares and selling cannot practically happen before then.

 

How will investors be able to sell IPO shares?

 

This is easy. Simply choose when and how many to sell, and execute the deal online or alternatively instruct a sale over the telephone. Dealing online is almost always cheaper than dealing over the telephone.

 

Will there be a dividend from IPO shares and if so, how will they be paid and when?

 

This depends upon the company. The prospectus will normally detail any proposed dividend policy.

 

How will investors find out if there are any special discounts or shareholder perks?

 

If there are any, they will be detailed in the prospectus

 

What are the risks?

 

The value of shares will fall as well as rise, so investors may get back less than they invested. Dividends are not guaranteed and, if paid, are variable. During the period between the Intention to Float being announced and the start of the offer period, the intention may be withdrawn. This rarely happens.

A company which is the subject of an IPO may not have a long track record and could be difficult to value or calculate a fair price. In many IPOs investors do not know the share price before committing to buy and therefore may end up buying at a higher price than they wished.

Investors should read the prospectus and any supplementary documentation as this will include the main risks of investing.

 

JAY Z Takes The Crown At UK Festivals

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JAY Z TAKES THE CROWN AT UK FESTIVALS

~ Demand to see Jay Z this summer outstripping that for Beyonce by 2:1 ~

Jay-Z_2011

He may have 99 Problems but selling tickets ain’t one. Fans of Jay Z are clearly hoping to witness the world’s biggest hip hop star take centre stage as demand for tickets to Wireless Festival has soared following the leaking of his album. viagogo saw a 163 per cent increase in searches for the Wireless festival.

Wife Beyonce is also sure to dazzle the crowd at V Festival this August with fans keen on catching her in action following her unforgettable Mrs. Carter Show earlier this year. However, King Jay Z takes the throne this summer with demand outstripping that for Queen Bey by 2:1, while other festivals, including T in the Park and Bestival, are still yet to sell out.

 

Women’s vulnerability to mental illness may be underestimated by general public

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women's rick of mental health underestimatedWomen’s vulnerability to mental illness may be underestimated by general public, cautions leading scientist.

 

The vulnerability of women to mental illness is being under-estimated by the general public and many mental health professionals too. Two-thirds of people believe that rates of psychological problems are the same in men and women, according to a new survey. Yet research suggests that women are between 20 to 40 per cent more likely than men to suffer mental health issues in any given year.
 
The survey of 500 people (204 men and 296 women) also revealed that most believe men are judged more harshly for showing emotional problems, with 76 percent reporting that a man saying they are miserable or anxious is generally considered worse than a woman saying the same thing.
 
However, while 43 percent of respondents believe that depression is as widespread in men as in women, 40 percent correctly say the condition is twice as prevalent among women. Similarly while 37 percent of those questioned believe rates of anxiety disorder are the same for both sexes, 50 per cent correctly say women are twice as likely to suffer from anxiety as men. Perhaps unsurprisingly, more than 60 per cent of people believe that alcohol problems are more common among men than women. But this is one area where women are more harshly judged with 89 percent stating that a woman getting drunk is generally considered worse than a man doing likewise.
 
The survey was carried out by Professor Daniel Freeman of the University of Oxford, in collaboration with Oxford University Press. Professor Freeman, the author of The Stressed Sex, which addresses the gender imbalance among those suffering mental illness, said: ‘The survey provides a fascinating – and unprecedented – initial insight into everyday beliefs about gender and mental health, and the behaviours that can help determine our psychological wellbeing.’
 
As Professor Freeman points out, the research also highlights the common misconceptions held by both the public and many medical professionals. ‘The respondents underestimated the extent of psychological problems in women – and so do most mental health professionals.
‘The general view seems to be that overall rates of mental health are virtually identical for men and women, but when you examine the results of national health surveys the reality is quite different.
 
He added: ‘Women outnumber men for psychological disorders as a whole. Indeed the most comprehensive of the national surveys suggests rates are almost 50 percent higher in women than in men. However, this is not an issue that receives the attention it deserves.’
 
Boys don’t cry
 
The survey shows that we tend to be much harder on men who express fear or unhappiness than women. Professor Freeman said ‘While girls may be indulged in their fears and worries, boys are taught to overcome them. Big boys don’t cry. It’s not simply a case of boys learning to mask their feelings, though doubtless that happens too: they may actually feel less anxiety. When we avoid what we fear, we deprive ourselves of the opportunity to discover that, in fact, we can handle the situation. And thus our fear is maintained. But if we face up to our fear, it will dwindle and die.”
 
Women’s greater vulnerability to psychological problems, warns Professor Freeman, represents a major public health issue. “The lack of attention given to the issue of gender and mental health is striking – which no doubt helps explain why the survey respondents consistently underestimated the scale of the problem among women. By ignoring this important issue we deprive ourselves of the opportunity to change the situation for the better.”
The Stressed Sex Survey
 
Are men or women more likely to have a psychological disorder?
Men and women have about the same rates: 66%
Women have more: 25%
Men have more: 9.0%
 
Do men or women have more stressful lives?
Men have more stressful lives: 5%
Men and women have equally stressful lives: 77%
Women have more stressful lives: 18%
 
Do rates of depression differ between men and women?
Four times more common in men: 0%
Twice as common in men: 12%
The rate is equal in men and women: 43%
Twice as common in women: 40%
Four times as common in women: 4%
 
Do rates of alcohol disorders differ between men and women?
Six times more common in men: 6%
Three times more common in men: 63%
The rate is equal in men and women: 28%
Three times as common in women: 2%
Six times as common in women: 0.0%
 
Do rates of anxiety differ between men and women?
Four times more common in men: 0%
Twice as common in men: 5%
The rate is equal in men and women: 37%
Twice as common in women: 50%
Four times as common in women: 8%
 
In general, are men and women judged differently for getting drunk?
Men and women are judged equally: 10%
A woman getting drunk is generally considered worse than a man getting drunk: 89%
A man getting drunk is generally considered worse than a woman getting drunk: 1%
 
In general, are men and women judged differently for saying that they are miserable or anxious?
Men and women are judged equally: 15%
A man saying they are miserable or anxious is generally considered worse than a woman saying the same thing: 76%
A woman saying they are miserable or anxious is generally considered worse than a man saying the same thing: 9%
 
Do you think the links between gender and mental health receive sufficient attention from health professionals and the general public?
Yes: 30%
No: 70%
 
 

Strut in the City – Jean-Michel Cazabat on Sale at Cocosa

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Strut in the City – Jean-Michel Cazabat on sale at Cocosa.com 16 – 23 July 2013

jean-michel shoes sale

On sale from today until 23 July, celebrated shoe designer Jean-Michel Cazabat will be strutting onto luxury flash sales site Cocosa.com, offering stunning shoes for up to 50% off. Adored by the likes of Scarlett Johansson, Sarah Jessica Parker and Gwyneth Paltrow, resident New Yorker and Paris-born designer Jean-Michel Cazabat’s style is feminine, fun and fashionable and finished with a rock ‘n’ roll edge.

Choose from flamboyant snakeskin heels like the Emma Courts, the very style owned by the girl about town Sarah Jessica Parker; or pick strappy platforms in bold aqua green, sure to complete your glamourous summer evening wardrobe.

With an A-lister seal of approval, this is one shoe sale you need to trot to!

Cocosa, the leading designer flash sales website, is the go-to site for top notch luxury designer pieces at amazing prices. With up to 70% off the RRP at Cocosa you don’t want to miss out on this sensational sale.

 

The Collapse of Private Pensions

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According to data published by the Office for National Statistics today, membership of private pensions (as opposed to the National Insurance funded state pension) has hit a new low; just 35% of men and 32% of women aged between 16 and 64 were active members of a private pension in 2011/12.

Membership of Defined Benefit pensions has declined from 46% of employees in 1997 to just 28% in 2012, almost exclusively now in the public sector.

Participation rates of employees varies dramatically between public and private sectors, with 85% of men and 81% of women in the public sector, compared to 36% and 26% respectively in the private sector.

Hargreaves Lansdown comment, Tom McPhail, Head of Pensions Research ‘These figures illustrate dramatically how important it is that auto-enrolment succeeds over the next 5 years. It is vital that nothing is done to jeopardise this project and that everything possible is done to encourage people to stay enrolled in their workplace pensions. Recent calls for reform of pension taxation or for small businesses to be exempt from auto-enrolment should be postponed or ignored until the foundations of a savings culture have been properly laid.’

Separately, the ONS has reported average contribution rates as 19.2% of payroll for Defined Benefits schemes and just 9.4% for Defined Contribution arrangements.

Tom McPhail: ‘The inevitable consequence of this level of pension funding is that millions of people will have to work on into their 70s because they won’t be able to afford to retire earlier. All defined contribution members should be shown what their contributions are likely to buy for them in the way of a retirement income, this pension projection should be updated regularly and members should be encouraged to engage with their retirement planning. 9.4% as an average is simply not enough. Investors should aim to be contributing at least 12% of their income towards their retirement. For a more personal estimate, they should use an online pension calculator.’

Many pension calculators are available on the internet, this is one example http://www.hl.co.uk/pensions/interactive-calculators/pension-calculator

What do you think? Do you have a pension?

Plan early to keep holidays on budget says Loveholidays.com

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20130714-132550.jpgTravel and saving money rarely goes together but don’t let that put you off, we got Love Holidays to give us some tips. Recent media stories* have highlighted that holidays are potentially stretching the budgets of the average UK holiday maker by over £200, however loveholidays.com has the answer to keeping budgets in check.

 

The online travel agent suggests there are five easy steps to keeping a budget in check:

 

  1. Book a holiday early and pay for it in instalments
  2. Purchase holiday extras such as transfers or hold luggage at the time of booking
  3. Double check everything you do to ensure your dates, names, departure/arrival airports etc. are correct
  4. Book all-inclusive or half-board accommodation to keep down the cost of dining out
  5. Stay in hotels that are located in the centre of resorts or within easy walking distance of the beach and attractions

 

Alex Francis, MD of loveholidays.com commented: “Blowing your budget is something that really need not occur if holidaymakers are sensible in their planning and purchasing when they book.  It’s all about taking time to carefully select the most appropriate holiday and booking in advance to ensure there is time to plan and organise.

 

loveholidays.com also offers its users a ‘lowest price promise guarantee’ meaning that they are the cheapest option available for breaks to hotels and destinations featured by the company.

*Caxton FX claims: One in five Britons blows their holiday budget, with an average overspend of £211

*Thomas Cooks raised correction fees for airline tickets: £30 each way for any spelling changes made online, up from £20, and £50 over the phone. At the airport the charge is £100.

 

Crush Drums & Percussion Kits Up For UK Debut

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We know a lot of musicians read Frost so we thought we would bring you this article that caught our eye, and look at that drum! We want.

Crush_Acrylic_web_res

Sound Technology Ltd is proud to announce it has been chosen to exclusively distribute Crush Drums and Percussion in the UK and Republic of Ireland.

Founded in the USA in March 2010, Crush Drums & Percussion is a young, driven company created by drummers for drummers. In the two years since its official public launch, Crush has built an impressive reputation and established itself as a leading brand in the US stores.

Terry Platt, CEO and Co-founder of Crush commented, “We are truly honoured that Sound Technology will take the lead in growing the Crush family of dealers and drummers in the UK. Sound Technology’s obvious commitment to excellence fully embodies our vision for the types of partners we want representing our instruments. We have many drummers sending us messages through our website and social media sites requesting Crush Drums in the UK. With much appreciation to Sound Technology we are on our way!”

“Crush is a brand that fits well with our strategy,” says David Marshall, Managing Director of Sound Technology Ltd. “It is a quality product, made by people who care about their craft. We are extremely proud to be representing the brand in the UK.”

Prepare to see the Crush product range in UK stores from July onwards. The line includes strictly Limited Edition kits, through to the stunning Sublime Series, and best-selling Chameleon Series.  Drummers already behind the brand include Jay Postones of British band Tesseract – described as ‘fu@@ing immense’ by Kerrang – and Rocky Gray currently of We Are The Fallen and the muscle on the likes of Evanescence’s multi-million selling Fallen.

30% rise in suicidal calls to Mind Infoline

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Sad news from Mind;

Mind, the mental health charity, today expressed alarm as new figures from its national telephone service show a 50% call increase within twelve months. The number of calls rose to over 68,000 in 2012/13[1], from 46,000 in 2011/2012.

 

The Mind Infoline has seen a corresponding shift in the nature of calls, with people presenting more acute and complex problems, many stemming from severe financial worries.  This is reflected in a concerning 30% rise in calls relating to suicide: In 2012/13 there were 1,546 calls from people who had experienced suicidal thoughts, had taken steps to end their own life, or had concerns about a loved one, this was up from the 1,185 contacts received the previous year.

 

In response to the worrying figures, Mind acknowledges the increased need for its services, and urges people not to wait until they hit crisis point before getting in touch. As the charity announces the appointment of a new celebrity ambassador, TV presenter Anna Williamson, it hopes she will help raise crucial awareness through her role to ensure no one has to face a mental health problem alone.

 

Anna Williamson, who this week starts her new summer role offering viewers advice on ITV’s This Morning,  has battled severe anxiety and panic attacks for many years. She now talks openly about her experiences and the vital first step of asking for help. Anna will play a key role as a Mind ambassador, encouraging others to seek support as soon as they need it.

 

Anna Williamson said: “I know just how scary it can be to start the conversation – worrying what friends or colleagues will think. But I also now know that opening up is the key to getting better. Since I first shared my own experiences, I’ve heard from so many others in the same position. It’s easy to forget you’re not alone, that actually 1 in 4 people experience a mental health problem every year.

 

“I am passionate about raising awareness and thrilled to be joining Mind as an ambassador. Through my new role I’m determined to let people know its OK to ask for help.”

 

Paul Farmer, CEO for Mind says:

“Today many people face the stark reality of severe financial pressures, be it through employment worries, benefit cuts, increased cost of living, or a lethal combination of all three. It’s therefore no surprise that people need Mind more than ever. We urge anyone who needs our support to pick up the phone and to do it today.   

 

“We know that when people in the public eye speak out, it inspires others to seek help. We are delighted to have Anna Williamson’s support and are confident her honesty and candour will strike a chord with many others across the country and prompt them to get in touch.”

 

The Mindinfoline is a confidential telephone service providing information about mental health diagnosis, treatment, medication, local service provision and advocacy. Open from 9am – 6pm Monday – Friday, calls to the service are charged at a local rate and can be reached on 0300 123 3393.