Stobart Group

ANGLICANPAT

What does anyone think of the Stobart Group sterling bond offer. 5.5% fixed for 6 years?
Stobarts profits have been down, but there again maybe thats only because theyve been expanding? Its available in an Isa too- interest half yearly installments. Bonds can be bought in multiples of £100 --min £2000

coastline

a good site..

http://www.fixedincomeinvestor.co.uk/x/default.html

http://www.fixedincomeinvestor.co.uk/x/analysis.html?type=bond-of-the-week&cat=analysis-comment&y=2012&aid=854

Jegersmart

If Stobart go down I guess you would lose your principal? If so this should be factored into any decision you make...

J

ANGLICANPAT

Very interesting link thanks. I hadnt realized Stobarts had such a small % of the transport market. The main Stobart base is not that far from where I live so I suppose I get a false impression of how many of their trucks are around. The article has put me off somewhat -- and I guess till the Government stops foreign truckers filling up on the continent and coming here working for a week with their cheaper fuel and various road tax advantages, the likes of Stobarts will be at an unfair disadvantage -- on the other hand, if the Govt does address it ...... bonanza?

Glen_Clark

ANGLICANPAT wrote: »

I guess till the Government stops foreign truckers filling up on the continent and coming here working for a week with their cheaper fuel and various road tax advantages, the likes of Stobarts will be at an unfair disadvantage -- on the other hand, if the Govt does address it ...... bonanza?

The Government has done nothing to address this problem for as long as I can remember (at least 30 years) so don't expect it anytime soon.
The author appeared bored with constant the rush rush, busy busy, just made it in time, of the drivers, but if you are an investor you'd better hope they carry on with their rush rush busy busy just made it in time - to keep Stobart solvent.

grey_gym_sock

ANGLICANPAT wrote: »

...... bonanza?

even if this pans out (i'm doubtful), there's no bonanza for bond holders. you just get your 5.5% and principal returned. i'm not sure it's enough reward for the risk.

i am usually skeptical about bond issues, though

moneylover

if you google 'Investors Chronicle and Stobart' you will find their review which is a positive one. You can stick the bond in an ISA if you have room

joerugby

This might have a place as a small part of a very large portfolio but otherwise I can't see how the risk could outweigh the potential benefits

moneylover

well, there is risk with everything apart from bank and building society accounts so it depends what level of risk you are comfortable with. And what you consider a large portfolio

Masomnia

moneylover wrote: »

well, there is risk with everything apart from bank and building society accounts so it depends what level of risk you are comfortable with. And what you consider a large portfolio

Inflation, and the risk that they go bust and you have to wait get your cash back. Nothing is risk free.

On these bonds, you have to bear in mind they are unsecured, have no protection if SG go bust, if you need your money back you may have to sell at a loss, inflation could take off leaving you stuck with a negative real return.

The bonds have not been rated by any agencies, so you have to work out yourself the likelihood of default by the issuer, and work out whether 5.5% is enough to compensate you for taking those risks.

I'd personally want more than that for the risks entailed. But then I'm sceptical about all these bond issues recently from companies hoping to get cheap borrowing from savers fed up with low rates on deposits.

oldtoolie

I prefer a corporate bond fund rather than concentrating the risk and return on one company.