Zero Prf Z Dvpf Discussion Threads

[chuckie egg] 23/11/2001 00:38

Hindsight,

ZPGZ is not a ramp. I holding until redemption. I hoping for others to suggest ideas. I looking to narrow the field of my research, with help from you lot. Please put forward EPICs code.

Thanks

[hindsight] 23/11/2001 00:23

Heres the chart but the cover looks a bit poor for the return offered

[chuckie egg] 22/11/2001 11:48

Thanks CCNP. I do use www.splitonline.co.uk. But they don't give div yield on capitals - whare some of the real bargins are.

I also like to look at the trust holdings. If they hold a large % of split capital IT income shares then I tend to steer clear.

Can give me some specific EPIC to research, where you think the reward to risk ratio is good.


Cheers

[ccnp] 22/11/2001 11:41

one other thought.

I dont like LeggMason but to their credit, they did write off their Railtrack shares. Right now, a trust wouldn't have to do that since their is scope for soem assett recovery.

you might check any trust for Railtrack holdings

ccnp

[ccnp] 22/11/2001 11:37

use www.splitsonline.co.uk to help your analysis

personally, I've made a pile on splits and dont like the look of them anymore. In fairness, thats because I'm one of the pesimists who think that a lot of big company shares are way, way over priced and these underpin a lot of splits

ccnp

[chuckie egg] 22/11/2001 11:09

Anyone else trying to find bargins within this sector?

Because of the negative publicity, all split capital investment trusts have been tarnished with the same brush. I'm sure there are some great opportunities but... the problem there are so many trusts. So far I have managed to research about 15 trusts.

My take....

So far I have invested inTCH and ZPGZ. I would not recommend TCH as they have moved so far ahead since I have purchased them.

The merits of ZPGZ:

1) They trade on a large NAV discount.
2) They invest in zeros which are less volatile than income shares. Many zeros now trade at a discount of NAV. There could be a double whammy effect when zeros get rerated. Zero usually trade at close to NAV.
3) Based on the offer price 40p, I calculated an annual redemption yield of 22%.

I hold a lot cash at the moment which is earning about 4% per annum. For me the decision is easy. The trust winds up at 4/8/04,by then the NAV discount will be eliminated. If you willing to hold for approx 3 yrs this is a good risk to reward ratio.

Please contribute your "hidden gems".