|M&g Income Investment Co
||EPS - Basic
||Market Cap (m)
M&G Income Investment Share Discussion Threads
Showing 1 to 5 of 25 messages
Chat Pages: 1
|NAV 26p+ and 21p on the offer|
Thanks for your comment.
So the question is can the portfolio grow by an average of 5% per annum over the next four years?
The last interims unaudited show 7.4% growth in net asset value over the six months....
25% of the portfolio is in Bonds and the spread of equity investments quite broad though weighted toward financials and Oil&Gas.
Downside risk minimal IMHO and a strong buy at these levels.
Not as exciting as it first looks.
The NAV of the Ords might well be 25.77p now, but much of that will accrue to the ZDP's over the next four years.
Taking net assets of £173.3m, and a total cost of redeeming the ZDP's at their final entitlement leaves just £37m, or 13p, for Ordinary shareholders.
Let's say that the trust pays out 2p per year to Ordinary shareholders, then they should receive in the order of 8p in dividends. So with a terminal NAV of 13p, plus 8p in dividends, you will be paying 21p for 21p.
If their assets fall by 20% over the next four years, there will be no capital payout at all.
This stock is a highly geared play on the market going up, and gives little downside protection.
|NAV 25.77p 21p on the offer|
|Strong buy IMHO|
Chat Pages: 1