Close Brothers Dev Vct Share Discussion Threads

[ukneonboy] 02/1/2004 20:38

Anyway, back to our ongoing discussions about Close Bros Developments VCT plc (CBD).

Yes, you are correct, the company did recently "buy-back" and cancel a large block of CBD shares, and Yes, the vendor probably was a deceased estate. However, CBD would NOT have been quite as keen to buy these shares, if the shares themselves weren't trading at a massive discount to the N.A.V of 79.5p (Sept 2003)

The net asset value is expected to have risen above this figure in recent months, which supports my argument for trying to buy CBD shares (cheaply).

I'm basically anxious to exploit the "supply and demand imbalance" with CBD and I am very keen to "mop-up" any surplus shares, that become available either via Winterflood Securities (WINS) or Brewin Dolphin Securities.

UKNEONBOY

:-)

[ukneonboy] 02/1/2004 20:28

"Retail Service Provider" ??? I may be old fashioned, but I still prefer the historical term JOBBER.

Prior to Big Bang in 1986, when I first began working in the Securities industry, every private client stockbroker was obliged to obtain 3 market quotes from different jobbers (market-makers) before dealing.

The creation of the "Yellow Strip" and computerisation (SEAQ) certainly made life much easier, but recent technological changes have generally been disadvantageous to most small investors.

[a0002577] 02/1/2004 15:30

PS - looked at your profile - how former is "former" - private client stockbroker - thought jobbers were now called RSPs or some other intolerable name - kind regards

[a0002577] 02/1/2004 15:27

Ukneonbiy - the only reason people sell is either cos they're dead ! At least their excutors have decided to sell (and the CGT is no longer an issue then but IHT is) or cos they've over reached themsselves. Most usually it is the former.

the 45000 purchase was by the VCT itself - see RNS

NAV at 30 Sept was 79.5

[ukneonboy] 02/1/2004 15:16

Not many investors trade CBD shares, so here's details of the last 4 trades recorded at the L.S.E

01 Dec 03 Purchase of 45,000 @ 70p
01 Dec 03 Sale of 50,000 @ 65p
18 Nov 03 Purchase of 1,000 @ 83p
17 Nov 03 Simultaneous Sale & Purchase of 5,000 @ 66p (Agency Cross)

So this is why I'm happy to buy CBD @ 60p (if the jobbers will finally sell me some!!!!)

UKNEONBOY

:-)

[ukneonboy] 02/1/2004 15:02

Coincidentally, I'm currently trying to buy more CBD shares, in the market right now, but the jobbers don't want to sell me any at 60p !!!!

[ukneonboy] 02/1/2004 14:59

To be honest I can't see many CBD shareholders wanting to sell at present. Simply because most investors paid £1 per share at launch, nearly 5 years ago, the net assets are basically worth at least 80p per share, so why would anybody wish to sell now at just 50p ???

If anything, people should be BUYING "CBD" not SELLING it.

[glennborthwick] 02/1/2004 11:39

yep interesting core holding -I'll monitor for now, fully invested in ASR for now

[a0002577] 02/1/2004 11:38

Dividend yield 7.5% at mid but only 6.4 at Offer price - yield is tax free and doesn't have to go on tax return even. Yup a good stock to buy. However they are in the close period now and cannot buy back shares so any sales in the market will drag the price lower. Furthermore they have a habit of increasing dividends. See what your broker can buy them for : they can generally deal inside the spread for small quantities

[glennborthwick] 02/1/2004 11:00

whats yield on these UKneonboy

[ukneonboy] 02/1/2004 10:58

As I understand things, unwelcome, but soon to be implemented changes to tax legislation, means that prospective investors in new VCT's will no longer be able to defer previously realised Capital Gains Tax liabilities.

Realising these alterations are potentially disadvantageous to prospective VCT investors, Close Bros have quickly brought out a new tranche of "C" shares, in the Close Bros Development VCT plc which WILL allow investors to defer C.G.T. liabilities.

Also the prospective dividend yield on both the existing CBD shares and the new "C" shares is very attractive.

I also like the fact that Close Bros have deliberately chosen to invest in "asset rich" companies unlike many of their VCT peers who ran headlong into technology related investments.

Based on the current market price of the old CBD shares 50p (bid) - 70p (offer), these are an absolute steal, and remarkably still trade at a big discount to Net Asset Value (NAV).

[a0002577] 30/12/2003 16:53

Hi - yes agreed Close Bros are one of the best - if not the best - VCT managers - have done very well out of them in the past : what's so special about their new offer ?

[ukneonboy] 29/12/2003 15:29

Mr Patrick Reeve & Mr Ole Bettum (Close Bros Venture Managers)can be contacted on 0207 422 7830 by any existing or prospective investors in CBD.

The new "C" Share Offer announced on 24 Dec 2003 looks like a real bargain too.

[ukneonboy] 29/12/2003 15:23

Recent renewed investor confidence which has driven the FTSE 100 Share Index to a new 16 month high should also be good news for small caps, like CBD.

Close Bros Venture Management are shortly due to publish CBD's latest Net Asset Value (NAV)which is widely expected to have risen.

Ironically, CBD shares continue to trade below Net Asset Value but they should almost certainly rise in the next 2 - 3 weeks, as the company starts to issue more new "C" shares.

STILL A VERY STRONG BUY.

[ukneonboy] 29/9/2003 19:19

Another set of excellent results and a maintained interim dividend of 1.8p per share (paid 31 Oct 2003)

[ukneonboy] 28/1/2003 11:10

Unlike many of its peers, Close Brothers Development VCT plc has historically been one of the better performing VCT's.

The company recently began issuing new "C" shares, which allow new investors to invest in CBD, obtain immediate Income Tax relief @ 20% and also "defer" Capital Gains Tax on other previously realised and therefore taxable gains.Investors must retain their CBD shares for a full 3 calendar years to qualify and benefit from the above tax breaks.

The managers, Close Bros have focused on "asset-backed" investments rather than technology, so its definitely one of the safer VCT's around at the moment.

:-)