Utilico Emg Sub Share Discussion Threads

[energiser01] 15/3/2018 16:34

Looks like trustee paid out about 40.21p per sub vs 40.5, based on closing Sp. so I’ll take my small profit on those, after the bumpy ride leading up to the exercise....

Dyor etc...

[riskvsreward] 23/2/2018 09:36

Thanks Kenmitch.

[kenmitch] 19/2/2018 17:55

Yes. Trustee appointed to exercise lapsed UEMS as explained in post 30 here!

[riskvsreward] 19/2/2018 17:50

Anyone knows if the the company will appoint a trustee to take care of unexercised subscription shares?

[kenmitch] 10/1/2018 14:53

Yes, surprising spread is tighter as often it is widened a month or so before final expiry date.

Share stalling again at previous peak level. Hope it will at last break through and send UEMS higher. 50p would be good!

[vulgaris] 10/1/2018 11:47

The spread has narrowed remarkably, from 3-4p down to 1p

[hiddendepths] 10/1/2018 11:25

Knocked out half at this price rather than let the trustee have a go. Taking up the other half as long term investment.

[davebowler] 09/1/2018 15:43

UEMS should be trading at 49p by rights but is 41p

[vulgaris] 02/1/2018 15:15

At 35.5 offered and 183 to pay for conversion these give a net price of 218.5 for UEM, vs 226 in the market.

Even allowing that UEM has one more XD move, lopping 1.5p, before the last conversion date at the end of Feb, UEMS continues to look too cheap.

[davebowler] 15/12/2017 13:51

These should be about 37p based on UEM being 220p

[kenmitch] 21/11/2017 12:57

Yes. Definitely a trustee to service lapsed sub shares. There usually is a trustee.

[cgmcgm] 18/11/2017 11:07

Looks like I'll be holding mine till Feb to get full value.

Will there definitely be a trustee sale of subscription shares still held at expiry?

Apparently there was a trustee sale of PCFS, but I never received any notification of this, so sold some and exercised the rest. In theory a trustee sale is a better option, as exercising the subscription rights is expensive, but only if it will definitely happen.

UEM a bit weak lately, with widening discount. Hope this doesn't last.

[davebowler] 06/10/2017 12:07

These should be at 47p pro rata to the UEM price of £2.30 to buy.

[hiddendepths] 21/8/2017 15:07

Just bought a few (topped up) at 37.373. Surprised they haven't gone up today.

[davebowler] 16/8/2017 13:41

35p to sell at the moment

[kenmitch] 20/7/2017 16:27

Yes. At last. 37p. Still far too cheap but can't see that changing. No idea why the MMs keep both buy and sell prices way below where they should be. The plus point is we can buy way below the price we should have to pay. The whole idea is that investors expect to pay a PREMIUM for a warrant - i.e pay extra for the time value left. Instead these days they are on offer at a big discount. We can always get full value by exercising or with luck somewhere near by letting UEMS lapse and leaving it to the trustee, so it's not a big negative.

Still think fwiw that 250p share price is a very reachable target. UMES then worth 67p, but probable sell price around 60p which is still double the UEMS price since my April post. Even just 240p and worth 57p and trading around 50p will give another 30% gain from price today.

vacnendak.

It's far better (if bullish on share price) to continue to hold UEMS than exercise next month.

Have had a look at EQN. Looks tempting but if market knows rights issue on the way that might keep lid on share price. I like to buy in the dull phase AFTER a rights issue and while all those extra shares are being digested but will keep an eye. Thanks for the heads up.

[davebowler] 20/7/2017 15:15

That's more like it but its still some way off its rightful 44p price!

[vacendak] 18/7/2017 09:05

@kenmitch.

Well, you already know I went into this one for the long run on UEM and I have not changed my mind. :)

I had put some cash aside for this round, but Equiniti (EQN) is about to tap its shareholders soon... and I am happily one of them. EQN is on a roll right now and seems to be on its way to world domination, so better be part of it.

So UEM might have to wait until the last call.

[kenmitch] 17/7/2017 19:32

Not converting mine. Hoping UEM can go up around 7% to 240p by early next year. That would make UEMS worth 57p so even if still at a discount UEMS should then reach 50p.That's 40% above current 35.5p buy price. Why convert to get 7% instead of continue to hold UEMS for possible 40%?

[vacendak] 14/7/2017 20:20

RNS about the reminder notice for conversion:

[kenmitch] 20/6/2017 16:23

neutronium.

Sorry. Have only just seen your post and question.

It's not unusual to see the sub move in opposite direction to share. Read nothing into it. Subs are traded by very few and a few buying the subs on share down day or vice verse can cause it. The thing that matters is the price against the share price. And even today with both UEM and UEMS up at 226p and 36p UEMS is worth 43p so is still too cheap.

[davebowler] 19/6/2017 16:13

Charles Jillings makes the point that the conversion of these shares to ordinaries will have the effect of UEM joining the FTSE 250. Trackers will then have to buy!

[vacendak] 13/6/2017 08:57

@KT
Good choice. I bought my UEMS about a year ago, converted a few at the latest call and intend to do so with the remainder in August. I like the nature of the holdings (mostly utilities as the name implies), personally it makes it somewhat "defensive" despite being an EM stock. The 3.1% yield is not to be sniffed at either. People who sneak into UEM ownership via UEMS have an even better effective yield after converting.

It is a bit heavy on HK/China for me because I also have some Asia-Pacific exposure from elsewhere; but the rest of the geographical spread is diversified.

UEM is the EM stock of choice for Foreign & Colonial Investment Trust, which is about as steady-as-it-goes as one can get when considering long-term.

[killing_time] 12/6/2017 19:14

Bought a few of these today. Been looking to buy into UEM for a long time, always seems to be getting away from me, but with everything that's happening at the moment I can see sterling weakening so hoping for a nice rise on foreign assets.

Used to invest in warrants years ago when they used to give them away with new issues but sadly they don't seem to do it anymore. KT.

[neutronium] 12/6/2017 15:51

Hi Ken

Yes, valid point, current price would suggest it is trading at a major discount, similar to UEM which has a NAV of 246.28 (as closing Friday) with a share price of 225. The discount swayed me in the first instance in investing in UEM directly and now constitutes my entire EM exposure (albeit I took a small punt on Brazil after the recent fall, time will tell on that one!!). It is only recently that I've looked at the subscription shares - if I am happy to invest directly with the principle fund then, as you say, it is a 'no brainer'.

Incidentally I've noticed that UEMS does not mirror the main share price movements and can drop on days when the main share rises, is there a reason for this??