|Lindsell Train Investment Trust
||EPS - Basic
||Market Cap (m)
|Equity Investment Instruments
Lindsell Train Investment News
|Lindsell Train Investment Daily Update: Lindsell Train Investment Trust is listed in the Equity Investment Instruments sector of the London Stock Exchange with ticker LTI. The last closing price for Lindsell Train Investment was £740.|
Lindsell Train Investment Trust has a 4 week average price of £720 and a 12 week average price of £705.
The 1 year high share price is £929.99 while the 1 year low share price is currently £550.
There are currently 220,000 shares in issue and the average daily traded volume is 210 shares. The market capitalisation of Lindsell Train Investment Trust is £163,900,000.
|topvest: Well they have warned 2/3 times that the share price was at a ridiculous premium. Nothing they need to do, but carry on doing what they have always done.|
|topvest: Good results again. Chairman has warned stakeholders about buying the shares at a premium..unusual behaviour for a Chairman, but honourable all the same.
"I reiterate the cautionary comments I made to shareholders in last year's annual report, first about the risk to the NAV from a sharp fall in markets given the size of holding in LTL and second to caution potential new shareholders to think carefully before buying the Company's shares at a premium to NAV, which as I write is at 6%. This has fallen from higher levels late in 2013 but it is worth pointing out that if the investment in LTL continues to grow in importance above 25% of the NAV the share price of the Company will increasingly be determined by investors views on the value of that asset and less by conventional reference to the NAV."|
|topvest: You don't often see a Board saying the premium is too high...very unusual!
The first six months of the Company's financial year continued as last year's ended, with the Company's net asset value rising more than the benchmark and world equity markets. The NAV was up 7.8%, the benchmark 1.9% and world markets measured by the MSCI World index in Sterling up 0.6%. What has changed more is the share price. It was up 28.4% and at the end of September was trading at a premium to NAV of 21%. The Manager wrote about the premium in its September monthly update. The Board would like to support and reiterate some of the comments, and in particular would caution new investors buying shares at a heightened premium to NAV. In time the premium may contract and there is a risk that the shares will trade at a discount in the future. Should that occur at a time when markets are weak and the NAV is falling the loss of value for investors buying at a significant premium could be material. Also, it would be wrong for existing investors to celebrate a high price that results from a large premium. The Manager's annual management and performance fees are calculated on the market capitalisation of the Company not the NAV. Calculating the fee on the market capitalisation was designed to align the Manager's interests with shareholders, recognising that investment trusts have generally traded at discounts. This works to shareholders' advantage when discounts exist but that advantage is reversed when a premium prevails.
Aside from communicating our concern and reiterating that the price the Board ascribes to its holding in Lindsell Train Limited is realistic and not undervalued (as some shareholders have suggested), there is little the Board can do to help resolve the situation other than issuing new shares. In previous statements, I have commented that the strong growth in LTL's business is much to be welcomed as is the greater strength and depth which the business is developing, but LTL remains significantly dependent on its two original founders and on continued good investment performance. The Board is currently reluctant to issue more shares as we believe this would dilute shareholders' interest in LTL, hitherto the most important and value creating asset the Company owns.|
|dasein: I think ADVN have the wrong share price clarky..coreect price per share is £172..so div yield 1% not 100% :))
the company reports make interesting reading... definitley from the buffet/graham school of investing !|
Lindsell Train Investment share price data is direct from the London Stock Exchange