|Strategic Equity Capital
||EPS - Basic
||Market Cap (m)
|Equity Investment Instruments
Strategic Equity Capital Share Discussion Threads
Showing 126 to 148 of 150 messages
|I bought more today. My tip for next year|
|Good news at SERV today, which SEC topped up in recently. I think 2017 will be a good year here.|
|I suppose it rather depends whether they can find a good use for the proceeds!|
|At last count, SEC had 8.1% of its assets in E2V, and the so if E2V at that time was around 180p. Let's say that equates to roughly 16p of NAV. The bid today adds around 8p to SECs NAV, and also vindicates the SEC board investment process. With the share price only up 4p ATM, I would say now is a good entry point.|
|Thanks bamboo much appreciated. I'm going to study charting soon, just need the time!|
|Hi mf, yes it is making a small bowl at the moment. The dip in the summer makes it quite difficult to chart, using patterns that are familiar to me.
The obvious first target is the recent high at around 209. An eod close above this targets 216/17, look again if and when it hits each target to see if the chart has a clearer pattern.
The 50sma crossing the 200sma is a positive, although for it to be called a Golden Cross, both should be rising.|
|I liked the annual report, thought it was candid and bought some more on the strength of it. I think SEC goes to the heart of fund management: were they just lucky on a couple of calls or are they capable of truly adding value? And the answer to that question determines whether they should be on a discount or premium. All I can say is that I looked at these for a couple of years and the premium put me off: I am delighted to have accumulated what I regard as an ideal allocation at around a 10% discount.|
|@ Mad - likewise this week (in the SIPP, so def a lt hold)|
|bought in today, have been watching for a fair while and am very pleased to get in at a 5% discount to NAV. Now looking to hold for a few years.|
|nice move in tribal today circa 2% position here. sec has worked with new ceo there before at allocate which we used to own before it got sold to private equity.|
|Looks a like a turn|
|there you have it - not too bad and manager not raised a silly amount.|
|Thank you all for the informed discussion. We will just have to wait and see what the issue price is!|
|why would I be bothered about pre-emption rights when the raise will be accretive to nav of the company. pre-emption rights should only apply when raise is dilutive and comes in the form of a rights issue. to take this to 200m market cap is great as improves liquidity, however we want the raise to be as close to the share price as possible to help boost existing holders by increasing nav pure and simple. also the manager will no doubt bid up some of the existing stock with the new cash which will help. all in though, the premium at current rate is a little ott imo.|
I was discussing the disapplication of pre-emption rights recently and the general view (from people like ISS, who publish voting guidelines for shareholders) is that pre-emption rights should only be disapplied if shares are issued at a premium to NAV and even then limited to a maximum of 10% of the share capital.
The problem with pre-emption rights is that they are costly. SEC has a market cap of £150m. If they wanted to raise £25m and had a placing programme agreed, they could call their brokers, the brokers could call 2 or 3 key investors and they would probably be able to issue the shares at 230-235p within 2 days, possibly through an auction. I don't know who SEC's major shareholders are, but the brokers would be able to cherry pick institutions that the company might value as long term holders but who haven't invested to date because they only invest in £10 or £20m chunks.
To do a placing with pre-emption rights, you would probably need to set a fixed price and would have much higher costs, a longer time period and much more management time.
There are pros and cons either way, but I know from sitting on the board side, it is much easier (and cheaper) to raise funds quickly if the rights are disapplied.|
|edwardt - the premium on the new shares issued is to cover the cost of the share issue - placing fees etc. The 'real' price of the new shares is 'estimated' NAV. Whilst SEC share price remains at a premium to the NAV any new shares issued will tend to depress the share price Reading between the lines of the circular to shareholders the BOD view this as a desirable outcome. This is only of concern to those who bought shares at a premium to the NAV as they face a loss, hopfully only short term.
Of more concern is the proposed 2nd resolution to disapply statutory pre-emption rights to the new shares so that they do not have to be offered to existing shareholders first, as there is no obvious reason why this is necessary and none is given in the circular. I know I'm a suspicious so and so but this does look peculiar to me, so unless a clear reason is given I'll be voting no to resolution 2.|
|as stock will be issued at a premium, accretive to nav is the logical and correct answer. however the extent of the premium has to be questioned long term. that said, who cares if the nav keeps ticking up via good stock selection!|
|Any views on the introduction of £20m poundsworth of shares shortly.
How will the share price be affected and also NAV|
|edwardt : agreed, with a current NAV around 217- 218, the trend up to 240 (offer) was strange and understandably re-traced back to 230. I expected it to retrace further than that, but it has moved forward again this morning with an increasing offer price of 236 - 237 ; this seems overcooked for SEC. However, with a clear majority of buyers on level2, positive sentiment seems to be in charge.|
|i suggest newbies avoid buying closed ended funds if they can not grasp the moving parts involved. As for the dangerous over generalisation, i hear you but stand by my comment. A wide discount can be that assets are opaque and the market is offering a better representation of fair value. However, most of the time it offers a margin of safety -this is absent when buying assets at a premium when the underlying assets are quoted and have their own respective bid price on an exchange. Paying a premium like the one on patient capital at the moment has to eat into the future returns - small investors often over pay for the 'magic source' of fund managers.|
|"..a wide discount therefore is an opportunity not a 'worry'..."
That's a dangerous over-generalisation. A marketwide widening of discounts certainly offers opportunities - but discounts on some funds are well deserved and indicative of problems. I'm sure you know that, but I mention it in case any newbies take it as applying across the board ;o)|
|Tracker funds seem to be buying as it's been promoted to higher levels.
FT 5th June.|