3i Share Discussion Threads

[hawaly] 14/11/2019 09:52

Private equity group 3i to raise stake in discount retailer Action


Once-Dutch store chain has increased sales fivefold in eight years

[jonwig] 14/11/2019 09:19

@ hashertu - trade #1 was the uncrossing at the open auction (so certainly intended!) but the level (1050p) and the opening quote certainly look weird!

@ bothdavis - they aren't disposing of Action, but some investors (Eurofund V) want to exit, and they're providing liquidity, ie. acting as a sort of market-maker. In fact:

Although the final position will not be known until completion, we expect to increase our net investment in Action to just under 50%.

[jerseyman1] 14/11/2019 09:18

Maybe it's reaction to reinvesting carry 3i earned in Eurofund from realisation of part of Action stake at c20x EBITDA rather than taking the cash. Damned if they did, damned if they didn't.....

[bothdavis] 14/11/2019 09:11

I would think it is market reaction to the disposal of Action by 2020. Should return to a steady share price in due course once overreaction is through.

[riverman77] 14/11/2019 09:03

The results look perfectly fine but it's still on 20% premium even after the drop this morning. Furthermore, Action is valued on a very high multiple, so if you put all this together this is not looking cheap, especially as there are plenty of good quality private equity funds on 20% discounts (ICGT is my favoured pick).

[jerseyman1] 14/11/2019 08:56

Surprised at share price reaction to what looked to me as decent results, but what do I know?!

[hashertu] 14/11/2019 08:50

It would be interesting to know whether trade number 1 was intended, or not.
Set ripples in motion, but the volume is sweet FA.

[jonwig] 14/11/2019 08:47

Yes, that surprised me!

The only individual underperformance was Schlemmer (automotive, so maybe expected) with a £36m valuation haircut. It could be that Action's growth is below expectations, I can't say. They didn't take part in 3IN's recent placing, so their sake is diluted a bit.

But all that shouldn't cause a 9% fall at the open.

[watfordhornet] 14/11/2019 08:40

Market does not agree. Painful drop that is

[jonwig] 14/11/2019 07:22

H1 results. They seem to be doing rather well:

[chc15] 03/10/2019 08:34

3IN placing not helping today

[jerseyman1] 02/10/2019 20:31

EJ I appreciate your taking the time to reply, and I understand the bigger issues in the markets but the 3i fall seems disproportionate at 5.6% for a FTSE 100 business, double than overall markets. That was the point of my perhaps poorly worded question

[jerseyman1] 02/10/2019 18:20

Any clues re today's fall? Broker note? Bad news on something?

[andrewbaker] 30/9/2019 12:17

I'm looking to make a buy, but not whilst the premium is so high, especially with a market drop imminent, though when is anybody's guess. Private equity , whilst profitable in the main (assuming good stock picking), is volatile, and getting in at a high premium when values may be about to come down, isn't a good idea, IMHO.
In fact, now could be a good time to take some profits, and wait to buy back in at a lower level. I don't think there's too much risk of the price running away right now.

[jerseyman1] 29/9/2019 17:51

jonwig I saw the Capital Markets slides, but their publication coincided with a slide in the shares for the next couple of days! To be honest I wasn't overly impressed with the three investments they highlighted, but I guess it's fairly early days in the investment cycle with those, and they can't overhype things.Whatever the reason for recent rises I'll enjoy the ride

[jonwig] 29/9/2019 10:28

topvest - I bought at IPO, but gave them to our daughter who gets automatic dividend reinvestment. She hasn't the foggiest idea what they're worth.

I did buy more last year when they dipped below 800p.

[topvest] 29/9/2019 08:56

3i has been doing really well. My shares in 3i are now a 5-bagger in less than 10 years, before dividends. I guess quite a bit of this is due to ACTION which has been a stellar investment. Happy days.

[jonwig] 28/9/2019 14:43

@ Jerseyman - well, the 18/09 Capital Markets Seminar has gone unremarked here. The presentation:

[jerseyman1] 28/9/2019 12:09

Volatile price this last couple of weeks, culminating in very strong rise this last three days. Apart from article re discounts to NAV closing on some better investment trusts (can't recall where) any views as to why 3i performing as such? Particularly as it has a significant premium to NAV already....

[chc15] 23/8/2019 14:55

While ago now, can't remember, I use many data sources, anyway I'm on the beach atm enjoying the sun ?

[truffle] 23/8/2019 14:34

Well could you please post a copy of the specific article/item which said institutions were buying 3i at that time
Thanks