Blackrock Com Share Discussion Threads

[speedsgh] 19/6/2015 18:29

Pretty awful share price performance over the past 5yrs, even after factoring in the income received + the poor sentiment in the sector over the period. Will be interesting to see how the new Placing Programme is received + whether the current channel that it has been trading in for the last 6 months holds. If not then it looks like it could be going down to re-visit the 2008 all-time-lows sub 70p. Yield is c7.3% at present but the chart is not looking pretty.

[speedsgh] 19/6/2015 18:19

Copy of prospectus -

INVESTMENT PORTFOLIO
As at 17 June 2015 (the latest practicable date prior to the publication of this document), the Company held 55 investments in companies and the total number of open options was 17. There has been no significant change in the Company’s investments since 17 June 2015 and the date of this document.

LARGEST INVESTMENTS
The table below shows the top 13 holdings of the Company as at 17 June 2015 (the latest practicable date prior to the publication of this document).

Company ~ % of Gross Assets
BHP Billiton ~ 5.68
ExxonMobil ~ 5.36
Chevron ~ 5.29
Rio Tinto ~ 4.90
First Quantum Minerals ~ 4.64
Enbridge Income ~ 4.23
Eni ~ 3.42
Norilsk Nickel ~ 3.36
ConocoPhillips ~ 3.33
Glencore ~ 3.30
Statoil ~ 3.25
Royal Dutch Shell ~ 3.10
Anadarko Petroleum ~ 2.65
TOTAL 52.51

[speedsgh] 19/6/2015 18:16

Copy of prospectus -

INVESTMENT OUTLOOK
It has been a challenging period for natural resources with the sector materially underperforming broader equity markets in recent years. A combination of moderating growth in China, US dollar strength and growing supply has put significant pressure on commodity prices, with mining and energy share prices declining substantially during 2014. The industry has responded well with companies aggressively cutting costs and curtailing spend on future growth. At current prices high cost supply is leaving the market which should be supportive over the medium term. Given the decline in oil prices and the lack
of investment in certain industrial commodities, certain commodity prices such as copper and zinc will need to rise, in order to incentivise the investment required to meet future demand. Despite the falls in commodity prices, companies with robust balance sheets and high quality assets remain well positioned to grow dividends. Overall, the Company, as advised by the Manager, remains cautiously optimistic and believes that its portfolio is well positioned in high quality companies to take advantage of opportunities
that arise in 2015 and beyond.

[speedsgh] 19/6/2015 18:15

Copy of prospectus -

BENEFITS OF THE PLACING PROGRAMME
The Directors believe that the issue of New Ordinary Shares pursuant to the Placing Programme should be beneficial in that it will:
• maintain the Company’s ability to issue new Ordinary Shares tactically, so as to better manage the premium to Net Asset Value per Ordinary Shares at which the Ordinary Shares trade;
• grow the Company, thereby spreading operating costs over a larger capital base, which should reduce the ongoing charges ratio;
• enhance the Net Asset Value per Ordinary Share of existing Ordinary Shares through new share issuances at a premium to the last published Net Asset Value (cum-income) per Ordinary Share; and
• improve liquidity in the market for the Ordinary Shares.

[speedsgh] 19/6/2015 18:13

Prospectus publication -

The board of BlackRock Commodities Income Investment Trust plc (the "Company") is pleased to announce the publication today of a prospectus (the "Prospectus") in respect of a Placing Programme of up to 50 million Ordinary Shares and the admission of those Ordinary Shares to the Official List of the UK Listing Authority with a premium listing and to trading on the London Stock Exchange’s main market for listed securities.

[speedsgh] 15/6/2015 11:41

We'll hopefully see an irrationally large tick down in the share price on Thurs morning then, giving a nice top-up opp in readiness for the following quarter's div :o)

EDIT - Chart is looking like a possible re-test of the 82-83p area.

[neilyb675] 14/6/2015 11:46

Ex Div this week.

[contango1] 05/6/2015 10:30

SP today below yesterday's asset value, precluding any new equity issues. Perhaps the price is reflecting normal buy/sell conditions. Looks like a more favourable time for buying/topping-up as the price approaches the recent lows.

[contango1] 01/6/2015 17:05

. Buy. .Sell..Unknown
33,121 83,382 86,450

Today's reported deals, a pattern of deals typical of many recent trading days.
Can anyone enlighten me? Presumably the persistent excess of unclassified and sells is related to the Equity issues.

[aleman] 28/5/2015 15:35

Yes but our existing holdings are at depressed prices. Will they be buying them up at MORE depressed prices? No. Buying ore at LESS depressed prices would be dilutive. Similarly depressed prices passes the consideration on to gearing and overheads. It might help if management charges were fixed rather than % as the latter just go up with greater size. The effect of gearing depends on whether it's maintained, reduced or increased and what the market does after.

I'm not convinced managing the discount is of any benefit to me. It removes opportunity to buy more at a better discount or sell at a greater premium, altough it does help you get out at the bottom or buy in at the top. The latter helps investors who are unlucky or incompetent at the expense of the rest. Whether or not it benefits you depends on which group you are in!

[neilyb675] 28/5/2015 12:46

The effect is that BRCI are able to buy up more shares in the companies that pay dividends that allow us to pay/receive dividends ......ALL DONE AT DEPRRESSED PRICES. Now is the time to buy BRCI, its definitely trading at a discount and will catch up at some point.

[contango1] 28/5/2015 11:52

I wonder about effects of these continual equity issues! Yes, they are all made at a slight premium to asset value. Surely these issues must tend to suppress the share price. Where do all the new shares go? Are they bought up by BR funds and their other investment trusts? It may be that BR considers the underlying assets to be "cheap" and that this is a good time to invest in and expand BRCI.
Or more cynically it might be considered that BR is expanding the commission base and not necessarily benefiting shareholders, unless of course the commission rate was reduced.

[neilyb675] 14/5/2015 11:43

Ten Largest Equity Investments(in % of Total Assets order)

% Total
Company Region of Risk Assets
BHP Billiton Global 6.1
Chevron Global 6.1
ExxonMobil Global 5.9
Rio Tinto Global 5.7
Enbridge Income Canada 4.6
First Quantum Minerals Global 4.4
Eni Europe 3.4
Glencore Global 3.4
Freeport-McMoRan Copper & Gold Asia 3.3
ConocoPhillips USA 3.3

Commenting on the markets, Olivia Markham and Tom Holl, representing the
Investment Manager noted:

The mining and energy sectors both had a strong month. Both equities and the
underlying commodities rallied as a weaker US dollar and optimism around
stimulus measures in China offset weaker than expected economic data releases
from the world's largest consumer of metals.

Oil prices recovered strongly over the month, with Brent and WTI crudes rising
by 20.2% and 24.9% respectively. Data from the International Energy Agency
showed that global oil demand grew by 1.4% year-on-year during the first
quarter of 2015, with the acceleration led by OECD Americas and OECD Europe.
Meanwhile on the supply side, US oil production began to show the first signs
of rolling over as US daily production fell by ~170,000bbls/day over the month.
Heightened geo-political risk, owing to Saudi Arabia resuming air strikes in
Yemen, provided further support to the oil price.

M&A activity within the sector continued to gain momentum, with RD Shell
announcing an $80bn bid for BG, which represented a 52% premium to BG's 90 day
trading average. On completion of this deal, RD Shell will become the largest
player in the LNG market and will gain some growth projects in Brazil and East
Africa. This deal, along with Repsol's $8bn acquisition of Talisman and the
$35bn merger of Halliburton and Baker Hughes, are all typical signs of reaching
the bottom of the industry cylcle.

The base metals had a strong month, bouncing back after a weak March and
benefitting from the dollar weakness; zinc and nickel led the way, rising by 14.2%
and 12.8%, whilst aluminium and copper increased by 8.5% and 5.0% respectively.

Volatility in natural resource equities continues to be high relative to
general equity markets. The Company continued to write options during the month
including calls on a Chinese coal company and puts in one of our favoured gold
companies.

[neilyb675] 20/3/2015 10:53

Commenting on the markets, Olivia Markham and Tom Holl, representing the
Investment Manager noted:

February saw a strong rebound in the commodity complex with underlying
commodities rallying from their January lows. Brent crude oil rallied from $49/
bbl to $62/bbl at the end of the month and the Henry Hub gas price also
recovered modestly, rising by almost 3%. On the mining side there was a more
mixed picture. The traditional bell-weather commodity, copper, rose by 6.9%
over the month on the back of a number of supply side disruptions. Other base
metals were weaker during the quiet Chinese New Year holiday season with
aluminium, zinc and nickel falling by 2.8%, 3.4% and 7.1% respectively.

Many companies reported their financial results during the month and some key
trends began to emerge. In the mining sector, the major producers generally
exceeded expectations in terms of earnings and cashflow generation as operating
costs were successfully reduced. A function of the actions taken by the companies
and depreciating currencies such as the Australian dollar. Capital expenditures
were also cut. The strength of the results and balance sheets was demonstrated
with Rio Tinto announcing a $2bn share buyback.

In the portfolio, we rotated out of a number of Canadian listed energy
companies where the valuation was not compelling and the stocks were lacking
near or medium term catalysts. We redeployed the capital into some new US
focused stocks where the recent sell-off had presented an attractive entry
point into companies with strategic resource bases. As well as buying shares,
we also selectively wrote puts as the levels of option premium on offer were
high following recent volatile markets.

The portfolio remains tilted towards the energy sector because of the risks to
mining commodity demand from an uncertain macro-economic outlook in China and
relative valuation metrics.

[unastubbs] 19/3/2015 07:49

ex div 26/3 - dividend raise to 1.5p

[essentialinvestor] 18/3/2015 17:34

Neil, difficult to disagree with your post 206 IMV.

XOM from memory has increased it's dividend for over 30 years.


Edit - just checked 32 years of divi increase for XOM.

[aleman] 17/3/2015 15:28

Slightly increased dividend. Nice.

[speedsgh] 17/3/2015 15:03

Dividend Declaration -

The Board of BlackRock Commodities Income Investment Trust plc is pleased to
announce that the first quarterly interim dividend in respect of the financial
year ending 30 November 2015 of 1.5 pence per ordinary share has been
declared by the Directors, payable on 21 April 2015 to holders of ordinary
shares on the register at the close of business on 27 March 2015 (ex dividend
date is 26 March 2015).

[unastubbs] 17/3/2015 08:29

well true in shell's case, but bp, total, chevron etc? my view is we are safe for now but if p.o.o. remains <$50 into next year then the M&A activity will start as the smaller players reach distress territory. and this will need to be paid for out of debt. the dividends may then be at risk...