|HICL Infrastructure Company
||EPS - Basic
||Market Cap (m)
|Equity Investment Instruments
HICL Infrastructure Company Share Discussion Threads
Showing 451 to 475 of 475 messages
|So it's 1 for 22 at 159p. My thoughts of 1 for 10 were based on the offer being completely open to existing only, but it seems half of it is available to new shareholders.|
|That's what I'm thinking|
|So the strike price will be higher perhaps? 160p plus?|
|Sp has firmed nicely since announcing its intention to raise more dough|
|GODEL - if it's around 1-for-10 at 155p or less, I'll take up my allocation but won't apply for excess.|
I just found out about the quoteddata site a short while ago and am impressed with the content. The AIC website is good for disc/prem tracking too.
Totally forgo about the hxxp rule here for links.
Are you interested in dipping a toe into HICL. I am but will wait till after the Feb fundraising.|
|GODEL - thanks. Intersting chart there showing HICL trading at a discount in parts of 2008-09. And of course the NAV fell during the GFC. From about March 2009 it traded consistently at a premium as the wider market rose.
A clickable link here (capitalise the initial H):
|1 for 10 would be nice :-)|
|Useful chart, Skinny, thanks. So the fundraising between 148p and 161p. Guess 153p?|
|Price / NAV|
|A portfolio update is encouraging, with NAV at 147.4p* (31/12) and forecast dividends of 7.65p, 7.85p, 8.05p for '17, '18, '19. This presumably on the increased capital. details due this month:
*So a NAV premium of about 9% is a big shrinkage!|
|Confirmation that the will issue a prospectus for the open offer next month.
Assuming it's £200m @ 150p, that's about 1 for 11. At 160p nearer 1 for 12.|
|Yes that's starting to look attractive at that entry point. Watching and waiting|
|You might get 10p off, yes.
Last stated NAV was about 146p (30 Sept) and they'll publish a revised one with the circular. Halve the difference between nav and share price would be my guess. Suggests 150 - 155.|
|With £200m or more to raise, it could come at an attractive price.
Is it to much to hope for a 10p discount? This would mean a 5% yield, similar to JLIF.|
|well spotted jonwig|
|Fundraising as expected. Placing and open offer. Details in due course.|
|Two Dutch acquisitions:
But the intriguing bit comes at the end:
The Company currently has a funding surplus of approximately £6m but also has commitments of approximately £200m in aggregate ... which are expected to occur during the first half of 2017.
So what? Does this suggest a fundraising? If so have they reached the non-preemptive issue ceiling? (I haven't checked.) £200m would be about 10% of their current MCap so we might be presented with an open offer.|
|What we were talking about in the last posts (Citywire) -
The decline in bond markets has knocked HICL Infrastructure’;s premium rating but its outlook is good if inflation rises, Winterflood Securities says.
HICL has been very popular in recent years. This is down to its attractive dividend yield of 4.7% andthe fact that infrastructure investing provides inflation-linked returns that are uncorrelated to the stock market.
In July the investment trust’s shares reached a peak of 30% above net asset value as investors sought defensive investments amid the Brexit uncertainty. Since then the premium has dropped back to 10% as confidence has returned and bond prices have fallen. This has pushed up the yield or the proportion of income that it pays to investors. This is important as bond yields affect the discount rate used to value the present value of future cash flows HICL expects to make from operating roads, bridges and hospitals for the government. Rising yields cause discount rates to rise, which by themselves can lower the trust’s net asset value (NAV).
However, Winterflood Securities Kieran Drake was not concerned about a hit to NAV, explaining the trust’s income stream was protected against a rise in inflation up to 2.75%. Inflation is currently 0.9%. ‘The link to inflation for the portfolio is a 0.7% change in return for a 1% change in inflation. An increase in inflation to 2.75% would therefore be positive for performance and contractual inflation linkages in the portfolio would soften the impact of inflation above this level,’ Drake added.|
|Thanks for post Jonwig|
|mad - most of the cashflows are indexed, so the dividend should be stable in real terms.
Higher interest rates would increase the discount rate used in calculating NAV, hence reducing the NAV.
I suspect the second effect would become apparent before the first - not sure.|
|Not missing out, I don't have a penny sat in a deposit account. But agree I am waiting and hoping, this is a great fund. I do think it's a bit enthusiastically priced, but the market decides that not me, and I don't expect my post to have zip effect. The comment about inflation proof. Is it really though? I wonder if during the initial phases of a pick up of inflation money would flow in or out of here? The yield might be safe yes, but would the yield look as appealing?|
|Director bought a few|
|Nothing wrong with wishful thinking and dreaming out loud. In the meantime you are missing out on an inflation proof investment paying circa 4.5%. You must have a very good savings a count to beat that.|