Conygar Investment Share Discussion Threads

[skyship] 10/1/2013 17:10

Not counting chickens here, but we've seen some good two-way traffic and we do seem to be breaking clear of that 90p straitjacket, moving ahead north of both the 50Day & 200Day MAs:

[deepvalueinvestor] 09/1/2013 19:46

David and skyShip.i actually quite like the dividend and share buy back policy because for a 40% or 50% taxpayer, capital growth is so much more tax efficient than income. Schroder real estate or uk commercial property trust are the ones for income really. However, I accept the point that in an income hungry environment a higher dividend would probably attract new investors and narrow the discount. Either way, a move though 100p has got to be a short to medium term possibility.

[skyship] 09/1/2013 16:17

Quite so - and that would be a very nice 30% rise from the current 91p offer.

[sharpshare] 09/1/2013 16:04

Investment trust discounts have been shrinking over the past few months.
CIC could be next.
If the discount moves to 30% then the price would be around 118p.

[smarm] 09/1/2013 14:48

Tilts - thanks...I would have gone if morning but can't do 4pm.

Hey ho.

S

[skyship] 09/1/2013 14:40

O/T for a moment: BT re yr 863 above

I posted this on the DSC thread yesterday:

========================================
"Actually I do like PCTN, better value than SREI now as the 29.6% NAV discount compares to just 18.9% over at SREI. Also PCTN has already refinanced at really attractive levels; and its dividend is covered whereas SREI's won't be until perhaps the end of 2013.

Still, don't hold PCTN yet as I prefer the more likely upside from:

APT, CIC, DSC & TEIF"
========================================

[jaws6] 09/1/2013 14:06

david
Tks.will see you there.

[badtime] 09/1/2013 13:32

Sky u still in PCTN?

[davidosh] 09/1/2013 13:32

The Agm is at the same location as last year but at a much later time. There were 30 of us last year but should be calmer and friendlier this year. How many of you are coming as I will keep a running list ?

3 Waterhouse Square, 142 Holborn, EC1 on the 15th January at 4pm

[tiltonboy] 09/1/2013 13:16

Sue,

You can be my proxy if you want to go.

[smarm] 09/1/2013 12:19

jaws - where is the AGM, will they object to an observer?

S

[jaws6] 09/1/2013 11:35

skyship
I do go sometime .Last time at another co AGM only 3 of us objected rise .
Me ,marben and schroder fund managers.
can not talk much on BB but I do meet up some co I like or invested in .
Like HPEQ I meet full team there and very nice people re answers and info.
waiting for agm meeting before buying more.Hold some already.
Shame can not go in ISA.

[skyship] 09/1/2013 11:21

eeza - welcome

jaws - glad you too may join the PI group at the AGM

Alan - exactly. I'll be emailing the Chairman later. "Shareholder Value" is of course his responsibility rather than the CEO's...

[jaws6] 09/1/2013 10:34

david
Will try to join you for this AGM on 15/1

Any link for meeting place pl post here?
Tks

[alanji] 09/1/2013 10:27

Agree with Skyship. Dividend policy cannot be justified when large cash surplus.
"but for the most part retain profits for reinvestment in the business" - why then are they using cash to buy back shares? A decent dividend would provide an immediate re-rating - that is providing shareholder value.

Would like to get to AGM but doubt I will manage (3 hours) - if not no doubt others will make the point forcibly.

[eeza] 09/1/2013 09:56

Skyship twisted my arm again - in with small 7274, but paid 92p.

[skyship] 09/1/2013 09:39

Exactly - everyone is looking for yield nowadays.

[davidosh] 09/1/2013 09:37

I do agree regarding the dividend and a decent yield might just show that focus on shareholder interests has changed for the better here and attract decent attention from potential investors looking for yield and growth towards the NAV.

[skyship] 09/1/2013 09:27

sharpshare - thnx for yr above

davidosh - excellent news that you will be going to the AGM on the 15th. For sure I would have been with you if still living in the UK.

A favour. Could you challenge Ware on his frankly rather old fashioned and borish dividend policy. Of course he doesn't personally want earned income; however the alternative scrip issue divi system was developed especially for high taxpayers.

His current policy is as stated in the recent Prelims:

====================================

Dividend
The Board is pleased to recommend a final dividend of 1.25p per ordinary share in respect of the year ended 30 September 2012 to be paid on 22 January 2013 to shareholders on the register on 7 December 2012. This is an increase of 14% over last year. Our dividend policy is unchanged in that we will aim to provide some income return to shareholders but for the most part retain profits for reinvestment in the business.
=======================================

To my mind the policy is in no way compatible with a 27.4% LTV. The company has commendably low borrowings and has no real need to further bolster cash levels; so surely shareholders should be able to benefit from the very high earnings accruing from the high yielding portfolio.

They should announce a Strategic Update targeting an annual dividend based upon a %age of the y/e NAV. A 3% figure would provide a 4.98p dividend and a 5.5% yield at 91p. The cost of the dividend (£4.5m) should be compared with the £8.5m spent in buybacks last year. The dividend would be well covered by revenue earnings alone of 5.6p/share.

"Our dividend policy is unchanged" – Well – for the benefit of your shareholders it is time to change; to modify it to a policy more in keeping with the needs of your many private shareholders.
=======================================

What do you think David – were you already minded to have a go at him on that score?

[sharpshare] 09/1/2013 09:21

Agree that CIC looks good value at current prices. NAV around 168p, Price 91p.
Agree that CIC looks cheap relative to peers in the sector.
Agree that recent mgt actions have been favourable for outside shareholders.
Good luck all.

[davidosh] 09/1/2013 08:36

Sleepy....Quite a few of us are going to the Agm. I have seven so far.

[scburbs] 09/1/2013 08:34

My guess is that the premium they expect this to trade at is significant. I suspect they are looking at c.15-20% premium.

[skyship] 09/1/2013 08:27

Can't see the point unless they want to use their paper for acquisitions, but couldn't do that as no quoted specialists in the West End other than much larger players.

Will be interesting to watch...

[scburbs] 09/1/2013 08:15

Skyship, Hard though it may be too believe(!), the purpose of the float seems to be that it is expected to trade at a premium to NAV (due to the sector it is targeting).

They are encouraging unitholders in WELPUT to switch from a private fund to a listed vehicle on the basis that the listed competitors trade above NAV.

[scburbs] 09/1/2013 08:11

Thanks Jaws6, very interesting for QED (which manages (via Grafton) the WELPUT fund that WELPIC will invest in).