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LNK - Link Administration Holdings

Discussion in 'Stocks I-P' started by System, Oct 8, 2015.

  1. System

    System Administrator

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    Link Group administers financial ownership data for over 2,300 clients globally servicing an underlying stakeholder base which includes over 10 million superannuation account holders and over 20 million individual shareholders.

    Link Group has approximately 4,300 employees and operations in 11 countries.

    It is anticipated that LNK will list on the ASX in late October 2015.

    http://www.linkgroup.com
     
  2. JTLP

    JTLP

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    Oof. Link given a good old whack on some earnings revisions. Brexit isn’t helping and some remediation to do.

    Looks like it’s back to IPO levels, worthy of a punt? Revenue slightly ahead of 2018 but profit down.
     
  3. peter2

    peter2

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    I've posted a monthly chart of LNK since the IPO. It's interesting that the three largest bars are all down.
    lnk3105.PNG
     
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  4. peter2

    peter2

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    @Miner Here's the Link thread. I think you searched the incorrect section.
     
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  5. Miner

    Miner

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    Thanks Pete @peter2
     
  6. Miner

    Miner

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    Reproducing a link from Motley Free website - copyright does not apply to be a free for all.
    However, always use all kinds of filter to skim the real news from Motley Fool published information.
    https://www.fool.com.au/2019/07/05/...r-another-fall-on-neil-woodford-fund-blow-up/
    If you are busy to read all of the report then please read the extracted section;
    " It is now being alleged the manager got round rules capping unlisted holdings at no more than 10% of the fund through some sleight of hand investments on the Guernsey stock exchange that LFS permitted.
    I expect if these allegations are proven the FCA will come down like a tonne of bricks on Link Fund Solutions Limited and its directors
    .

    For its part, Link maintained in its June 18 announcement that it still considers LFS “has acted at all times in accordance with applicable rules and in the best interests of investors” over the Woodford Fund affair.

    LFS is also only a small part of Link’s business, but the regulatory risk alone is enough to put me (this refers to the writer of MF ) off buying Link shares today."
     
  7. Faramir

    Faramir Very New Investor

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    Did anyone buy Link roughly three months when it dropped. Today it went up 9.37% to $5.37. I was dreaming about buying some shares during the past two weeks but three things stopped me:
    1): No funds
    2): Over the past month, I was nervous or should I say no idea what the Annual Report would say today???
    3): I thought I had vague idea about Link Administration. I even kept a newspaper cut out of their PEXA acquisition last November. I think better study LNK more - I really don't understand it.

    Point 2): I always have troubles biting the bullet!

    Today I admit I felt FOMO when I was dreaming about entering between $4.60 and $4.80. There were opportunities over the past month.

    Here is the press release.
    https://www.asx.com.au/asxpdf/20190829/pdf/447zn1z3rddh50.pdf

    NPAT up 123% to $320 million
    Net operating cash flow $339 million, up 6%

    Is that profit influenced by the sale of CPCS? No wonder I should read Cash Flow Statements first. The lack of quality input in this post shows that I need more research time. I just need more time. Something must be OK if there is up to 10% share buy-back.

    Someone, please add some quality. Thanks.
     
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  8. Value Hunter

    Value Hunter

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    I am against investing in any share registries. Because to me they are all dinosaur business models with which have not generated any innovation in over 20 years. Dealing with share registries is an annoyance to most shareholders with so much duplication in filling out forms, etc and the process is totally un-streamlined and not user friendly. To me the industry seems ripe for disruption and share registries operating exactly the same way as 20 years ago just is not going to cut it and it I do not think the current situation will last in the long-term. Just like banks are getting disrupted by various fintechs, Wechat, Applepay, etc and credit card companies are getting disrupted by companies like Afterpay eventually all these dinosaur share registry companies will get disrupted also. They seem incredibly complacent in my view.

    Now I understand that there are regulations about privacy and data security but they can be addressed and in a rational world shareholders would not deal with share registries directly as they would only be operating invisibly at the backend. Shareholders would provide all details once to the stock exchange e.g. the ASX who would then create a profile for that person and share the information with share registries (upon the person ticking a box giving consent for this). The investor would then log in their profile on the ASX and manage everything from there (and the ASX would then have their systems linked to share registries and seamlessly pass on the data). This makes far more sense than for example an investor who owns 30 stocks having accounts with 8 different share registries. I could not think of a more idiotic system than the one we currently have.

    In a similar vein online stock broking desperately needs some innovation also.

    Basically part of the problem is that the ASX has a near monopoly in the Australian share market and therefore has had no incentive to get its s-h-i-t together and ensure that investing (from an administrative perspective) is a hassle free and seamless process for investors.
     
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  9. galumay

    galumay learner

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    Why are there multiple registries? There must be services they provide to the public companies that results in some competition? Otherwise it surely would just be a function provided by the ASX? (If the only purpose were shareholder comms.)

    Also thinking aloud, they must provide some value to the public companies because that is there only source of revenue, and they appear to be profitable businesses.

    The craziest thing about the whole investing process is the huge mountains of paperwork it generates, I could close my PO Box just about, if it were not for the thousands of letters from share registries! As someone who runs a totally paperless company its mindboggling in this day and age that people still operate in this way.
     
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  10. Value Hunter

    Value Hunter

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    Galumay mountains of pointless paperwork indeed......
     
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  11. Faramir

    Faramir Very New Investor

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    @Value Hunter and @galumay Thank you for your input. All this time I never thought about Compuserve, BoardRoom (and others that I cannot think of on a Saturday night.)

    Unless Link can reinvent itself and disrupt itself, then I have to agree with ValueHunter.

    My eyes have certainly been opened up. Maybe not biting the bullet is a good trait in this instance.

    (PS: Still dreaming of that short term trade but I had no idea things would react after the release of Annual Report - I wish I had hindsight.)

    To play devils advocate, could I argue that Government Regulation will give more time with Share Registries to ‘adapt’? I know you said dinosaurs. Also PEXA acquisition is a new kettle of fish for Link.

    I am looking for positive aspects. Not because I want to invest, I just want to know why I was seriously considering LNK. Was I thinking in terms of being a contrarian? Or looking for a turn around? Something attracted me to LNK.
     
  12. galumay

    galumay learner

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    I have never looked at LNK, its outside my circle of competence. I just had a glance at the AR and other than the debt it doesnt look too bad. I would have guessed a back of the envelope range of valuation around $6.

    I actually think VH was more saying he would like registries to be disrupted rather than saying he thinks its a present risk. Disuption doesnt always play out in favour of the disrupter either, sometimes it leads to improvements in the incumbent and they win, or its a win win.

    I think you need to look at the other players in the field and see where LNK sits as a business, no point in buying the 2nd or 3rd best business in the sector if you dont have a high conviction that they can change their rating.

    Just buying the business because the price has dropped is not a strategy that is likely to succeed in the long term! Its all very well being contrarian, but you have to have an insight that means you start contrarian but eventually the market agrees with you!

    In saying all of that, LNK may well be a great buy at current prices, I have no view one way or the other.
     
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  13. Smurf1976

    Smurf1976

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    For most investors it's even worse since apart from the physical paper issue, it's completely unnecessary paperwork anyway and would still be pointless if sent by email.

    In reality though if companies have to use a registry then it could still be a worthwhile investment despite what seems to be an antiquated business model. :2twocents
     
  14. bigdog

    bigdog Retired

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    ASX announcement today which market liked and share price currently up 10.79%

    31/01/2020 8:46:10 AM Presentation of Business Unit Realignment & AASB 16 Leases
    https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02197243

    LINK reported the acquisition of Pepper European Servicing for an upfront cash payment of €165 million (A$266 million). The deal includes a contingent cash payment of up to €35 million (A$56 million). Management expects the transaction to be double digit accretive to earnings, with a further 5% to 6% accretion anticipated from efficiency benefits over the medium term.

    upload_2020-1-31_14-55-41.png

    359
     
  15. finicky

    finicky

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    LNK @ 3.60 today

    For a potential buyer of more share there's recently been some interesting activity on the LNK register:

    Soon after reporting its H1 results on 27 Feb three directors of LNK bought large amounts on market. One director (chairman) bought on two consecutive days, spending not far shy of $1m.

    On Mar 10 Vanguard Group announced it had raised its substantial holding in LNK by 1%.

    Also the company since Mar 10 has been announcing daily share buy backs.
     
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  16. dyna

    dyna

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    Here I go again(must be somewhere near the bottom,by now? What have those yanks done to their market overnight?)...Anyway,bought $5 grand worth of Link,just now, for $3.25.
     
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