Schroder UK Growth Share Discussion Threads

[energyi] 10/11/2001 17:10

From:


This looks interesting. Latest NAV is: 122.4 against 100 Strike.
WArrant NAV value is 22.4 against price of 12.75P. If price rises
or discount on shares narrows to xxx% against steady price, you
make money.


SDUW Wt Quote:

[energyi] 10/11/2001 17:06

I like the looks of this one and have added it as
one of WT's Favorite warrants:

Investigating a purchase Warrant and short FTSE strategy.
Possible problem: less than 1 year remaining

[drpjst] 19/10/2001 20:47

SDU has spent the last couple of years buying up its own shares. Last year they picked up 18 million shares, in excess of 8% of the company. This year they bought 17 million shares. Even so they trade on a 20% discount to NAV.

In 2000 SDU announced it was re-examining its portfolio, making it clear that it was "neither an aggressive growth fund nor a technology fund, and remains a UK Growth Fund invested in UK equities for long-term capital growth." It has spent the past couple of years weeding out stocks that no longer fit the stated aims. This, in part, has provided SDU with the capital to buy back approximately 16% of its shares for cancellation. The Fund is now leaner, fitter and prepared for the upturn when it comes.

Although the company has suffered in the downturn, I believe it will show the same kind of returns it enjoyed between 1995 and 1998 when the share price doubled.