Jpel Private Equity Share Discussion Threads

[skyship] 25/12/2012 12:30

jaws - pity, no, missed that. Could you put up again - possibly at a designated time of your choice? Happy Christmas by the way...

[jaws6] 24/12/2012 16:16

I did put up some from that and deleted hope you seen that.

[skyship] 24/12/2012 15:16

jaws - yes, thnx for that - I was aware of those initiatives from the October factsheet. I thought you were referring to other more detailed initiatives possibly discussed in the Numis report...

[jaws6] 23/12/2012 18:55

edit-hope you saw that skyship what I put for you yesterady

[skyship] 22/12/2012 16:14

Jaws - "...and let's hope for good outcome of strategic initiatives or German news"

Can you or DVI say what strategic initiatives were being referred to?

As I stated earlier, IMO the one strategic initiative that JPEL ought to be undertaking to guarantee a better rating, is to introduce a dividend - as trail blazed by FPEO...

[jaws6] 20/12/2012 20:59

yieldsearch
Today Norway oil bought 1.6 billion stake in Euro property portfoilo.good news for sector might help for healthy exit early.

[deepvalueinvestor] 20/12/2012 19:44

True Skyship but if they keep doubling, it will help. With such a large discount, any improvement in NAV builds confidence and will help to narrow the discount. They look to have some momentum now.

[jaws6] 20/12/2012 13:29

deepvalueinestor
Tks for info,just got that note .
And let's hope for good outcome of strategic initiatives or German news .
skyship
If get link will put up later.

[skyship] 20/12/2012 08:05

Education services per se account for just 4.6% of the portfolio, so presumably just one aspect covered in a wider note. Still, a positive...thnx DVI.

[deepvalueinvestor] 20/12/2012 07:33

Numis were highlighting the sharp rally in education management this week - up 15% two days ago after a very challenging year

[skyship] 20/12/2012 07:25

DVI - interesting. Presumably no link to post, but could you perhaps post a relevant summary...

[deepvalueinvestor] 19/12/2012 19:32

a good note from numis today

[jaws6] 19/12/2012 15:01

.62 p trade in auction ?

[jaws6] 19/12/2012 11:01

SMALL tick up again

[deepvalueinvestor] 12/12/2012 20:01

Good overview Skyship and recent volumes point to others agreeing with you. I have modest exposure right now but looking to rotate out of DNE into this one and perhaps SVI. I will feel more comfortable with JPEL when they buy back the first lot of zeros in April and lower the cost and the quantity of the debt.

[skyship] 12/12/2012 10:38

Sp starting to move, so had to curtail this piece; but hopefully still tells much of the story:
==========================================================

JP Morgan Private Equity (JPEL) is one of the very few players not only NOT to have participated in this year's strong sector rise; but actually to have fallen – and by quite a large %age. As at today's date the shares are DOWN 31%.

Over that period the NAV has fallen by 12%, so 19% of that fall is attributable to a widening of the NAV discount from the then 31% to the current 47%. Incidentally, due to the recent 9% buyback, that 47% looks likely to increase to 49% at the next monthly declaration.

The Company is constantly stating that: "The Managers and Board believe that the current market price does not reflect the underlying value of the Company's portfolio, and as such, buyback authorisation was granted" In this they have been a bit of a one-trick pony with their Discount Management Scheme – simply buybacks, either through market purchases or occasional tenders. To date the result has been an ever-widening discount!

Of course, this is not a state of affairs which can continue ad infinitum. At some stage either one of two things will happen – or both.

1. The Company will wake up to the more effective solution of providing a net asset value linked dividend, following in the footsteps of Fidelity Private Equity (FPEO), or the specialist debt strategy fund RECI

2. Sentiment will change as the institutional sellers in 2012 will finally be exhausted; and the share price will return to the mean. (It is interesting to note that a return to a 32% discount to next month's likely NAV of 116c will deliver an share price of 79c – a 33% rise from today's 59.5c!)

That sentiment is hardly helped by the fact that this fund was launched and initially vested by Bear Stearns – so one might be forgiven in thinking that the portfolio might not be the calibre of its peers. That said, the JPM management are being innovative in their attempts to turn things around. The Q4'11 acquisition of the SPL Funds portfolio looks to have been a well-timed and opportunistic initiative; but it may well have been an acquisition of unintended consequences.



It seem more than likely that the 2012 share price weakness was as a result of selling by the SPL Funds vendors; and that November's "Co-ordinated Share Repurchase Programme" in which 31,4m shares were bought-in @ 63.75c was conducted purely to relieve unwanted overhang from that source. It wasn't stated, but it seems more than likely.



So, IMO the current JPEL pricing is a market aberration which provides the opportunity for a substantial rebound. That 33% mentioned above seems quite a reasonable target, especially if the Company continues with its attempts to provide better shareholder value – and maybe, just maybe, underwrites the share price with the introduction of a dividend.

Incidentally, JPEL is UK listed but is listed in US$, so not that easy to deal online. 59.5c = c37p

[deepvalueinvestor] 11/12/2012 20:59

I got a few more at $0.59 too as I finally noticed some bigger buyers. Someone was bidding $0.59 for 100k but didn't manage to deal so they raised to $0.595 and managed to deal in the 3pm auction. They had at least another 100k behind so perhaps we have now seen the low.

[tiltonboy] 11/12/2012 14:54

SKY,

Managed to pick up quite a few today at 59c.

[skyship] 11/12/2012 13:42

BT - yes a problem as if you ask them to buy you pay the much higher comm. rate and they deal at best - not possible to place a limit on a non-sterling quote stock. A weakness with the Sippdeal system.

Managed to buy a few @ 59c yesterday; but have been trying to add today - to no avail. Now they're being marked better...

Will pay up if I can get them.

[badtime] 11/12/2012 12:00

Forget tht post yurs truly was trying to buy in his ISA what a plonka

[badtime] 11/12/2012 10:05

Sky..how did u manage to your buy thru sippdeal...they dont seem to like an online buy on this one

[jaws6] 11/12/2012 08:30

small tick up again ?

[skyship] 28/11/2012 13:40

The PE sector has been a very good place to be throughout 2012 - see the SL thread.

Luckily I never bought into this one due to the gearing aspect; however I must admit that at 60c they are now looking seriously tempting @ a 46% NAV discount, now nearer 48% post the buyback.

We don't agree on something elsewhere, however I agree with Jonwig's above statement: "This sort of situation always intrigues me - apparent deep value which might be unlocked under certain circumstances."

Need to dig further...

[deepvalueinvestor] 26/11/2012 20:21

The NAV on the ordinary shares should rise to $1.15 due the large buyback of shares at $0.6375 but I think we will all feel much better when overall gearing is reduced. It is tempting at $0.60 though, for those who can accept the risk.