Uil Share Discussion Threads

[eeza] 15/8/2016 16:16

Sale of 500k ZDP 2022 @ 108p+

[energiser01] 15/8/2016 16:01

Uem share price and nav also continuing its trend upwards which is good to see. Dyor etc.etc.

[morton2011] 15/8/2016 15:57

SpectoAcc - yes to resolute sale in last couple of months of some/ all /most of warrants by UTL - guess it made up most of the 'proceeds' in July factsheet

Luckymouse - never quite understood why on these BB everytime large numbers of shares are traded its always represented as a buy by posters ! for every buyer there must be a seller.. there is definitely a lot more trading in the shares which is good as lack of liquidity caught me out when the shares were around 165 in 2013 and wanted to sell some shares above the normal market size and could not. Too mean to sell in small lot sizes the price dropped v fast so I ended up holding them, sold them much lower a couple of months later at a loss and in even smaller lot sizes.. I have bought more than I originally had on the way up since Feb this year so put it all down to experience.

[luckymouse] 15/8/2016 15:07

Some heavy buys this morning - poss institutions/high net worths accumulating
Agree its a good mix - those sectors are running - think Somers is doing an InvH&S

[spectoacc] 15/8/2016 14:27

@vacendak - edited ;)

Nothing wrong with being a pedant.

[vacendak] 15/8/2016 14:13

Morton

I may have mistaken Resolute for Zeta. Either, or both, at some point had been desperate for funds and - after interpreting the financial jargon (warrants, share conversion, etc.) - I had the feeling that UIL had behaved like a loan shark.

I do not mind having UIL being gold focused until after the Italian constitutional referendum, the US election or even our actual exit from the EU. UIL/Utilico has changed its skin in the past and I trust them to do it again when or if it is required.

[Resimac]
Your link is "subscriber only" if one clicks on it, but if searched again through Google (search for Resimac Saville), it can be read... Oh well.

[Infratil]
I cannot remember where I read it, but it was said that the Infratil sale was related to ICM/Saville believing that Infratil had "matured" therefore there was not much growth left, so UIL sold. There was a spat between Saville and whoever ran Infratil at the time as the gentleman complained that there definitely was some growth left and that Saville was wrong.

SpectoAcc
You are right. They exercised some recently at 150c, making 50% profit in the process at the time. The pedant in me would point out that those were $AU cents not GBX. Still 50% is 50%! :)

[spectoacc] 15/8/2016 14:01

Thanks @Morton. Do I recall that UTL did sell down a few Resolute when exercising warrants at 100c?

[davebowler] 15/8/2016 10:04

Summary per July factsheet;
The top ten constituents were unchanged in July. Five stocks advanced,
three remained the same and two declined.
Three Australian listed holdings, Resolute Mining, Touchcorp and Zeta
Resources performed exceptionally well in the month, driving the
performance of the portfolio as a whole.
Resolute Mining had another strong month, with its share price
increasing by 30.1% to A$1.67. Zeta Resources recorded a gain of 41.5%
in its NAV to A$0.44 per share and Zeta’s share price gained 33.3% to
A$0.24 per share.
Touchcorp’s share price was up by 34.1% in July, and benefited from
the success of Afterpay, of which Touchcorp owns 30%. Afterpay,
which allows Australian e-commerce websites to offer a ‘payment by
instalments’ option to their customers, listed at the end of May and gave
a very positive trading update in July. Afterpay’s share price advanced
61.8% in the month.
Other gainers during the month were Infratil, up by 5.6% and UEM, up by
4.7%. Augean’s share price fell by 4.3%. There was a slight decline in the
value of Vix Investments.
Purchases during the month amounted to £8.9m and realisations
totalled £5.3m.


1. Resolute Mining Limited 22.2%
2. Utilico Emerging Markets Limited 16.1%
3. Somers Limited 13.1%
4. Zeta Resources Limited 9.5%
5. Touchcorp Limited 6.0%
6. Vix Technology (unlisted) 5.8%
7. Infratil Limited 4.9%
8. Bermuda First Investment Company Limited 3.8%
9. Vix Investments Limited (unlisted) 2.9%
10. Augean plc 1.8%
Total Top 10 86.1%

[vacendak] 15/8/2016 08:28

Opening at +3.5p (2.2%) this morning.

Zeta up 0.04 (14.3%) [I have not checked the number of trades though], Resolute slightly down at close -0.03 (-1.6%).

I had been thinking about UIL holding a relatively big proportion of its portfolio in Resolute lately (because of the performance of the Resolute share price of course) and wondered if the "Investment restrictions and guidelines" mentioned in most documents were going to be breached.

This is taken from the Investor disclosure document on the UIL website:
"No single investment may be made by the Company which exceeds 30% of gross assets at the time of investment save that this limit shall not prevent the exercise of warrants, options or similar convertible instruments acquired prior to the relevant investment reaching the 30% limit."

Resolute now stands at 22.2% but my understanding is that UIL should not force itself to sell even if the holding went over the limit; since the investment in Resolute represented something way below the 30% of portfolio when said investments were made. It is as if the guideline was written with Resolute in mind: UIL has bought shares on the cheap, lent money and extorted some warrants from Resolute during its darkest hours.

[luckymouse] 14/8/2016 14:36

UTL (nav purple)





Main holdings flying







Zeros

[vacendak] 13/8/2016 15:46

Morton

Thanks again for doing the maths. My understanding, or to be more precise, my feelings about gearing is like "borrowing to invest". Great when things go well as it improves the returns, not so much when they don't.

Most ITs, the ones I have money invested in anyway, only mention gearing values between 5% and 10%. These are not "split capital", UIL is the only split-cap I have considered so far; so that may explain the discrepancy in scale.

Still, I was feeling a bit safer when UIL managed to bring said gearing below 100%. All things considered, especially with the portfolio being heavy in gold, even if there were a nasty crash like last time, and people again rushed to gold, things would not look too dicey for UIL, high gearing or not.

[Somers deal]
Getting better by the day indeed considering the increase in NAV. Somers is doing relatively well anyway, their acquisitions/expansion in the financial services in the UK (investment advice, portfolio management for the wealthy, from what I have gathered) seem to be sound. The odd thing about Somers is the listing on the Bernuda stock-exchange and the fact that it does not trade much at all. This is a bit like Zeta in some ways, low share liquidity and so on.

[mozy123] 13/8/2016 11:38

Cheers fellas!

Have the consideration shares been placed? It states around the 1st August. are these c12mil shares the reason the nav has increased from 30% to 50%?

[luckymouse] 13/8/2016 11:02

Worth mentioning they suggested a calculated nav dilution of only 3.2% tho (prob less now! 2%ish) - the benefits outweighing - ie larger marcap - more zdp cover - Somers on a 24% discount, debt free, doing buybacks & busy in the corp financial services sector - share price seems to like the deal

[morton2011] 13/8/2016 11:01

Hi Mozy

See my post 230 and see the prospectus hxxp://www.uil.limited/files/4014/6849/4550/20160714_FINAL_UIL_Prospectus_web_version.pdf

As the UIL Nav increases then less shares to be issued as Somers price not moved much - so in theory better deal now than it was in July - see section e.6 in prospectus for dilution

[mozy123] 13/8/2016 10:26

What is the somers deal?

[vacendak] 12/8/2016 20:09

Late update: The new factsheet is out:

hxxp://www.uil.limited/files/6914/7101/2888/UIL_Factsheet_July_2016.pdf

"Three Australian listed holdings, Resolute Mining, Touchcorp and Zeta
Resources performed exceptionally well in the month, driving the
performance of the portfolio as a whole."

Gearing down to 74.9%

The voluntary cut in the performance fee was about the NAV after all and not the share price as previously noted:
"UIL’s NAV rose above the high watermark and, as a result, the ICM
management fee discount no longer applies and the fee has reverted to
0.5% per annum."

[eeza] 12/8/2016 16:25

RNS

UIL Limited (the "Company") announces that on 12 August 2016 the Company purchased in the market 126,215 UIL Finance Limited 2016 ZDP Shares at a price of 191.75p per 2016 ZDP Share.

The Company's holding of 126,215 UIL Finance Limited 2016 ZDP Shares will be held as an investment until the redemption date of 31 October 2016.

[vacendak] 12/8/2016 15:45

I also wonder how a company that holds 532 holdings, Foreign & Colonial Investment Trust as of end of June, manages a daily NAV statement; while UIL, who holds a narrower by far portfolio, only graces us with one per week.

Mozy
I think LuckyMouse got the RNS from last week, which was indeed at 290.54p
As for the "estimated NAV" values from various sources, I do not know where they get them. Maybe they just extrapolate?

Buying back some ZDP 2016 at 191.75p - a slight premium to the latest accrued value of 189.76 - to avoid repaying the full price of 192.78 due in October.

[davebowler] 12/8/2016 15:19

I wonder why there's a discrepancy in the NAV's?
Nevertheless it's cheap.

[luckymouse] 12/8/2016 15:06

Yes RNS a bit higher

[mozy123] 12/8/2016 14:57

not what the last RNS stated.......

[luckymouse] 12/8/2016 14:52

Actual nav 290

[mozy123] 12/8/2016 14:12

Wish they would release an updated factsheet. Last one was may/june