3i Share Discussion Threads

[podgyted] 30/4/2019 07:04

FWIW.

10/5/17 Share price 828, Price to Book Value 1.50

1/5/18 share price 941, PBV 1.45

29/4/19 share price 1081 , PBV 1.40

From Stocko (stored pages).

So not out of sync historically, the collapse around the end of last year probably makes the current share price seem higher than it is.

[chc15] 18/4/2019 18:16

Interesting day, recovered, meaning there is strong institutional buying support at this level.

[chc15] 17/4/2019 21:08

Oh yes, used to be called graphite, saw a good write up abt them in the daily mail recently.

[riverman77] 17/4/2019 19:06

Yes the market rally all started when the Fed said there'd be no more rate rises because of slowing growth. So shaky foundations as you say, and meanwhile economic indicators continue to deteriorate. I've taken a few chips off the table and holding a bit of cash.

[dplewis1] 17/4/2019 18:36

I'll have a look at that as well. Tough to know what to do at the moment..rally seems like it's built on slightly shaky foundations and Trump seems to think the Fed is a vehicle to inflate the Dow.. might just hold a chunk of cash and see what happens!

[riverman77] 17/4/2019 18:29

CHC15 - one possible alternative: ICG Enterprise Trust,albeit more of a private equity fund of funds with a few direct holdings so not directly comparable. Nevertheles, very good performance, more diversified than 3i and on a near 20% discount.

[chc15] 17/4/2019 18:28

Ok good one, I'll hold on, as there will be institutions buying at these prices, why would they. mad but true.

[dplewis1] 17/4/2019 17:05

Yes I know what you mean. I was rather fortunate that I bought 100k shares of brave bison yesterday though so that worked out quite well for a change.

[chc15] 17/4/2019 16:53

Hmm thinking of trimming too, but it keeps rising, and what else can you put the cash in? So im holding.

[dplewis1] 16/4/2019 11:55

So I actually sold a few of mine today (the 500 shares at 1066 at 11:47) .. it's nice to sell into strength and while I still own more and think it will probably continue to perform well, I thought it wise to take some off the table with the premium where it is.

[riverman77] 15/4/2019 19:13

Yes discount retail is not normally a sector I'd be interested in, and they are valuing it on quite a high multiple, I think around 16x ev/ebitda, so that also needs to be considered.

[dplewis1] 15/4/2019 19:08

Yes true, they know the investments better than we ever will. I'm just generally wary of retail in the current environment but there are clearly still some winners left.

[riverman77] 15/4/2019 18:55

They could have realised Action a long time ago at a handsome profit. The fact that they are holding on to it suggests it must be very special. Needless to say I'm happy to trust their judgment on that.

[dplewis1] 15/4/2019 18:51

Yes I know how you feel. I bought a load of these at 1.80 about 7 years ago and only sold my first lump last year at 9.50. Has been an excellent investment since Borrows took over and the main reason I invested/held in the first place. Starting to feel it could be a bit lofty now though, but who knows. I've usually never regretted taking a nice profit.

[riverman77] 15/4/2019 18:27

This just keeps going higher and higher. Can't believe I was able to pick this up at under £8 a couple of months ago.

The question is at what point this becomes expensive and time to sell? I'm tempted to treat it as a long-term hold and not get too concerned about the rising premium. I know I'll kick myself if I sell and it keeps going up (I also hold JLG which has followed a very similar trajectory and also now on a 30% premium).

[jonwig] 14/4/2019 19:34

Jersey - thanks.

I think the valuation of Action is probably quite sound. In September's interims they said:

"... we acquired £12 million of Action shares from other shareholders, increasing the 3i holding to 44.23%" and this increased Action's value from £2.1bn (31/03/18) to £2.4bn (30/09/18). So there was an actual transaction there. Their valuation of Action is done on an "earnings" basis, ie. against comparable quoted companies but I'm not competent to offer an opinion there!

The valuation was increased to £2.54bn at 31/12. The 31/12 NAV of 3i was 802p, so a 32% premium suggests some of their assets are conservatively valued. (Has the premium ever been higher?)

[jerseyman1] 14/4/2019 16:35

Liquidity event due time expiry of one of the 3i funds which invested in Action having to realise. It could be anything....doubt an IPO, but could be sale of their stake to 3rd party or fund, or taken out by 3i itself. Should at the very least give evidence of the Action valuation which does seem pretty rich to my old fashioned eyes, but it is (and has) expanding profitably at c25% pa so tough one to value

[jerseyman1] 14/4/2019 16:30

It's a US investment via 3i Infrastructure, so only 30% impact on 3i plc but nevertheless an interesting new investment

[jonwig] 13/4/2019 14:37

@ Jerseyman - "Action liquidity even in Autumn". I'd be interested in your view of what this means. An IPO? European companies tend not to go in for this kind of thing, but I may have it wrong.

A surprising thing with 3i (which I bought on IPO) is that it fell to such a silly price as 750p at last year-end.

[truffle] 13/4/2019 13:32

Seen the connection with Ponroy, but not Regional Rail.
Can you help on that one please?

[jerseyman1] 12/4/2019 14:51

Continuing growth in share price Decent news flow in last couple of weeks or so.....Action CM Day, Magnitude, Pomroy and Regional Rail. And Action liquidity even in Autumn looming.

[truffle] 12/4/2019 12:41

Still very strong.
Action presumably doing well but maybe the Magnitude deal will be good news too when we get to know more about it in due course.

[jerseyman1] 02/4/2019 19:01

Strong rise in the last month or two. Consensus suggests another 15-20% to go. The Action investment is slated for a liquidity event in the Autumn which could be interesting.

[chc15] 02/4/2019 16:04

Over 10 now, next stop?

[jontyone] 20/3/2019 10:48

hxxps://magnitude.com/news/magnitude-primed-for-worldwide-data-revolution/

$179m investment in US software firm.