Hwsi Realisation Share Discussion Threads

[spectoacc] 21/8/2020 15:42

Closed some at 55p, still half a p shy but don't have to wait for it. RSPs been offering 55p for reasonable size since after the circular.

[spectoacc] 23/7/2020 20:04

Ha ha you know I like AEWU @2wild, let you off ;)

@apollocreed1 - the RNS said they had 75% acceptances pre-bid, tho presumably those can change their vote if another bidder emerges. Six shareholders, accounting for 75%, given irrevocable undertakings.

Coming round more to your view tho - isn't just below NAV, isn't just ignoring possible write-backs, isn't just ignoring the cash - is also ignoring the returns that would have been generated over the remaining lifetime of the loans. ie isn't "55.5p now or 62.3p but waiting a few years", it's 62.3p plus income/returns (less any further provisioning but plus any write-backs).

On other hand - it was trading at 28p, we're in the time of Covid, and enough big shareholders are desperate for the exit for the rest of us to have no say.

[2wild] 23/7/2020 17:17

apollocreed122 Not sure where you get 14p per share in cash from, was about 3.8p at 30th June.


SpectoAcc Guilty as charged,although have already made up the 1.8% by reinvesting 80% into AEWU on an 11% annual yield paid quarterly every 13 weeks.

[apollocreed1] 23/7/2020 16:47

@SpectoAcc - Thanks.
Are there big institutional shareholders that accepted the bid straight away before the retail investors had the chance to vote?

[spectoacc] 23/7/2020 16:05

Surprised some have been taking 54.5p - bid looks nailed on IMO & other than not knowing timescales/awaiting Scheme Document, there's another full 1p to be had.

Every penny counts..

[spectoacc] 22/7/2020 16:45

Not sure on the negligence point, but agreed on the written-off assets - looked to me like all 3 biomass loans had been written down to zero. Really no recovery, when supposedly asset-backed?

However - and it's a big however - they have management approval and c.75% shareholder backing for the bid, so it's going through. I'd have liked nearer stated NAV but frankly, delighted to be getting fully out so soon.

Some chance of a counter-bid? Maybe, but seems unlikely.

Not unsympathetic to your view at all, but also the chance more bad news may have appeared during the long period of wind-down.

[apollocreed1] 22/7/2020 16:44

Also HWSI have 14p in cash per share -why give this company to them on the cheap.

I just bought KKVL - it may also be ripe for a bid.

[apollocreed1] 22/7/2020 16:40

I think this is a very opportunistic bid and I hope shareholders don't accept it.

Many of the loans that are written off and therefore bring NAV to 62p can still be recovered. It's just a technical accounting rule, but the written off loans can still be pursued, so it may be that 80p at least of NAV can eventually be recovered.

There also may be asset valuers that can be sued for negligence which will provide some cash as their insurers will always settle outside court.

[spectoacc] 22/7/2020 11:29

@2wild - mentioning the lack of trades made me look at yesterday's, and maybe it leaked a little after all. For a co that, as you say, can trade no shares at all some days, yesterday's look a little iffy..

Tho if genuine, that buyer of 75k must be pleased.

[natty27] 22/7/2020 11:18

#MPL taking off, big news... ports in India back open

[2wild] 22/7/2020 11:06

Wow cannot believe it, I'm looking at 84.9% profit on my second largest holding. Incredible especially as there was literally no buying on several days between my previous 2 posts.

[yieldsearch] 22/7/2020 09:45

well done to shareholders (i am not! was monitoring..).
More and more listed companies with credit assets are taken over or in liquidation: this one, uk mortgage, urban exposure. I need to find the next one!

[spectoacc] 22/7/2020 08:45

Sub cash = value ;) Well done.

Agree re patience - value will out, on the REITs eventually too.

75% acceptances of the 55.5p before today - they did well not to let it leak.

[chucko1] 22/7/2020 08:34

I had a little bit of MTPH, if you don’t mind! That was priced sub cash. That said, I profess little skill in that area (at least I realise it), and see substantial value in some of these ITs and REITs and similar. Need to be patient, but that’s fine.

[spectoacc] 22/7/2020 08:29

Thanks all - pure luck with this unexpected bid, and bought original holding too high, but hopefully a sign of more to come at the value end of the market where we all fish :)

[vacendak] 22/7/2020 08:27

Carpet bagging! Like with the building societies in the 90s. :)

@SpectoAcc: Anyway, excellent timing indeed. Congratulations.

[chucko1] 22/7/2020 08:10

Yes, well done. It’s about time a proper investment decision was rewarded.

[spectoacc] 22/7/2020 08:06

Got lucky, had no expectation whatsoever of a bid.

[cc2014] 22/7/2020 07:55

arggh.. Dithered too long. Well done.

[spectoacc] 22/7/2020 07:24

GET IN! Had been waiting for spread to narrow to add still more, but delighted with this. Should arguably be nearer the last declared NAV (c.62p) but no having to hold for years:



· The boards of directors of HWSI Realisation Fund Limited (HWSIL) and Cubitt Trade Holdings LLC (Bidco) announce that they have reached agreement on the terms of a recommended cash offer to be made by Bidco for the entire issued and to be issued ordinary share capital of HWSIL.

· It is intended that the Offer will be implemented by way of a Court-sanctioned scheme of arrangement under Part VIII of the Companies Law of Guernsey (the Scheme).

· Under the terms of the Offer, Scheme Shareholders will be entitled to receive:

55.5 pence in cash for each Scheme Share

[spectoacc] 17/7/2020 15:44

Agree, but - we're assuming no sudden Coronavirus hit, a la SQN.

Still - the passage of time amortises the loans, and as you say - a decent cash cushion. Will be looking forward to the next capital return, sat on a decent chunk & adding on weakness.

[2wild] 17/7/2020 15:37

17 July update:
31 March NAV 61.20p
30 April NAV61.57p.
31 May NAV 61.97p.
30 June NAV 62.36p. Great value at over 50% discout to a rising NAV and has 14% of the share price in cash with another return of capital due by end of September.

[chucko1] 30/6/2020 14:18

Rising NAV makes sense as no dividends going out. So at least they are accruing interest from the loans, and at a rate equivalent to about 13% on the current share price Perhaps this will rise in the coming months to the extent that there might be the odd loan where interest had been suspended, but I am really not sure how many of these there are.

[2wild] 26/6/2020 11:39

31 March NAV 61.20p
30 April NAV 61.57p.
31 May NAV 61.97p.

Great value at over 50% discout to a rising NAV.

[2wild] 03/4/2020 22:09

Ex 19p capital return Mon 6th April. Expect gready MMs will quote a 20% spread about 25-30p on rump,. Which would be circa 55% discount to adjusted 29 Feb NAV. Could be a bargin but who knows how long and deep the recession will be.