Utilico Investment Trust Share Discussion Threads

[praipus] 06/2/2007 13:50

3i are raising a £1.5bn infrastructure fund! So all that cash is going to be looking for cash generating assets with monopolistic features. So I would buy all the utilities and infrastructure trusts (ECWC,UIL,UEM) you can before they do IMHO.

[praipus] 22/11/2006 12:27

In traded options which are similar to warrants IMHO value is made up of a number of elements.

Intrinisc value i.e. difference between exercise price and value of underlying.
Time value i.e. the longer dated the option or the warrant usually the higher the premium (option term for price paid).
Volatility i.e. if the price movement looks like it could hit 50% up or 50% down you may have to pay something for the privilage.

So I think what you are refering to is simply these values shifting as the market factors in time, volatility and intrinsic value. Long term you will do well.

UIL is a very well run and very safe IMHO investment trust for serious gearing to many of the same assets take a look at ECWC.

[oxford blue] 22/11/2006 11:44

Thanks - but why were they 100-180 and now 105-232? Why not 132-232? If that's because of the structure of the warrant terms, then why were they 100-180 for so long? I'm not doubting the 37% return, of course.

Thank you.

[praipus] 22/11/2006 10:37

oxford blue the warrants terms are as follows:

Subscription price £1.00 entitling you to .64 of an ordinary and .45 of a zero.

So diluted NAV on an ordinary ex income £2.46 x .64 = £1.5744
Zero at current NAV £1.1738 x .45 = £0.52821

So asset value of a warrant exercised is £2.10

Less £1.00 subscription = £1.10

Less price paid for warrant in your case 80p = 30p

Healthy 37% return

[oxford blue] 22/11/2006 08:41

I bought UILW at c 80p when the underlying stock was 180 (and UILW had been tracking that stock at c 100p behind regularly) - now the underlying stock is c. 232, the warratns are only 105 - doesn't make much sense to me that. Still, UIL has done well over the past few months.

[praipus] 21/11/2006 12:12

Ecofin and Sechillienne-SIDEC increases should have a dramatic impact here shortly.

[praipus] 20/11/2006 17:59

rambutan2 : 14% discount isnt too bad and not many places you can buy quality utility stocks at a discount. Or is there something else making them look expensive in your eyes?

[rambutan2] 16/11/2006 11:08

see they recently upped stake in euro utilities trust. although doesn't look partic cheap to me...


must have been doing well out of c&w.

and infratil has been going great guns recently...

[praipus] 16/11/2006 10:26

Kingfast its rather relaxing realy and you have to be prepared for boudts of extreme patience but otherwise no regrets. Currently enjoying owning some of the underlying notably the ECWC take a look at the graph if you have a moment to spare.

[kingfast] 15/11/2006 17:41

Have'nt hopped on this particular bus before. Lets hope its a good ride.

[praipus] 13/10/2006 12:47

Interesting presentation at the AGM available on the website follow "official documents" button. Pleaseing NAV rise and all time high.

[purse] 09/10/2006 08:55

Still rising slowly.
Also Utilico Emerging regaining steadily.
Happy to hold both.

[praipus] 03/10/2006 16:55

New all time high.

[praipus] 07/9/2006 09:55

Correct

.64 * Ordinary diluted NAV ex income of £2.05 = £1.312
.45 * ZDP todays NAV at £1.1572 = 52p or £1.77 2012 entitlement = 79p

Therefore warrant entitlement based on last NAV statement £1.312 + 52p = £1.83

Warrant at todays buy 88p
Exercise price £1.00

88p + £1.00 = £1.88

So in theory today the warrants are at a 5p premium to NAV.

Or if using the 2012 ZDP entitlement of 79p + Ordinary £1.312 = £2.10 the warrants trade at a 22p or 10% discount.

All this said I'm long of ordinaries today and will buy more UIL, UILW, UEM and UEMW as funds allow.

[oxford blue] 07/9/2006 01:06

I don't understand. Coud you explain. One warrant clearly doesn't buy you one ordinary share?

[praipus] 06/9/2006 15:24

Yes but it relates to .54 (should say .64 7/9/06) of an ordinary and .45 of a ZDP which to my mind give the warrants a premium. Willing to be corrected. That said I'm still a buyer for capital growth even at a premium.

[oxford blue] 06/9/2006 14:36

Well, isnt the exercise price 100p?

[praipus] 06/9/2006 10:52

How are you calculating the discount you speak of?

[oxford blue] 06/9/2006 09:08

Why are the warrants trading at such a discount to the stock? UILhas been creeping up slightly over the past few days, even weeks - and UILW has been static. Today there is over a 1% upward movement on UIL and UILW has actually gone down!

Any ideas?

[praipus] 21/6/2006 16:00

Perhaps they will though having paid so little for the original holding and enjoying the growth side why sell?

[linhur] 16/6/2006 20:31

Disposed of the Simon stake and doubled their money over 4 year period.I thought they should have got more than 60p for the assets, but the buyer has a large commercial customer relationship as well as a 29% holding in Simon. Ah well, move on now. They can release quite a lot of capital when the Ecofin Capital stake comes up next year.

[praipus] 31/5/2006 10:24

Thanks rambutan2

[rambutan2] 30/5/2006 23:05

see they upped their stake in european utilities trust (eut)