Caledonia Investments Share Discussion Threads

[m_kerr] 28/9/2022 16:40

if this falls further it's a clear buying opportunity. roughly equal sterling and dollar exposure. only around 17% of the underlying revenues of the portfolio are generated in the UK.

looking across the portfolio, virtually all of the funds segment (30% AUM) are US and asian. the quoted equity is only around 40% UK listed, and even so, that will include companies like BAT, unilever, and reckitt benckiser which are global businesses with substantial US dollar earnings. finally, they should have around £300m in cash, having turned some of the portfolio into cash over the last year.

there's clearly a significant margin of safety at this sort of share price.

[riverman77] 28/9/2022 15:21

Looks another buying opportunity - down 5% but mainly global exposure so sterling weakness should help. 9% held in cash so pretty well placed if market turmoil continues.

[flyer61] 23/9/2022 08:35

The other thing I like is the PE side of it.

From memory Microsoft is their biggest listed equity holding. Who doesn't like buying a slice of Microsoft on a 30% discount.

CLDN is my second biggest holding in my SIPP, it will be there long after I am gone....

Buy it on market sell off days...

[18bt] 23/9/2022 08:11

I agree Flyer. Ability to buy at such a discount is amazing. Can’t see it getting much worse or any better. Very conservative outfit, but rarely appears in lists of wealth preservation trusts.

[flyer61] 22/9/2022 08:25

m-kerr

I'm thrilled that the Cayzer family have a 48 plus per cent holding. They are most closely aligned with my long term interest here. This is not a fly by night outfit but the steady accumulation of capital over the long term.

Just how I like it...

[18bt] 21/9/2022 23:24

I think the Cyzer family concert party own 48% - that’s what is on their website anyway.

[m_kerr] 21/9/2022 19:02

they own 35.16% according to market screener.

but disappointing to see the interests of a minority shareholder being prioritised ahead of the group as a whole.

[18bt] 21/9/2022 07:41

M-kerr - they aren't going to do that IHO as Cayzer Trust stake then rises above 50%. This broadly means that they don't qualify as an investment trust as it would become a "close company" - that's my understanding. That's why special dividends are preferred.

[m_kerr] 19/9/2022 21:59

they need to start a substantial buyback programme or a tender offer. they'll soon have £700m in cash if the 7IM disposal goes through (which will add a further £200m to NAV). there's a 50% instant payback on such buybacks.

[qs99] 07/9/2022 08:24

May help provide some support, but not sure they play that game too much, yield needs to keep growing, no CEO wants to break that record!

[spoole5] 07/9/2022 08:08

Hopefully they'll start buying back again soon, still 10% cash.

[qs99] 06/9/2022 11:05

Agreed. Income & NAV growth....DYOR

[jaf111] 06/9/2022 10:31

Yet another very impressive NAV figure…..clearly benefitting from weakness in £££….
Discount to NAV now over 30%……dare I say the word again - ridiculous!!!

[qs99] 07/8/2022 09:39

I'll have to do more investigation. If discounts have widened on the others it will be for a good reason! Doesn't mean they will shorten if underlying businesses are struggling....good Sunday to you

[skyship] 05/8/2022 09:52

QS - You're right of course, perhaps more conservative. But I prefer to short-term trade the anomalies - very much as per PIN these past few days (all discussed on the PE & PIN threads).

[qs99] 05/8/2022 08:53

Maybe there are good reasons for the discount as CLDN continued delivery is better and exposure is more conservative than the others?

[skyship] 04/8/2022 18:41

As per my June post:
====================
Current NAV discount of 25.4% compares with:

# ICGT - 40.5%
# HVPE - 43.8%
# NBPE - 39.9%
# PIN - 42.1%

A switch out of CLDN (3765p) and in to HVPE (2120p) would look to be a good move.
====================

CLDN XD - but share price unchanged. HVPE up 14%.

CLDN on 24% discount; HVPE on 39%.

[qs99] 04/8/2022 16:20

Cracking NAV update IMO DYOR

[spoole5] 04/8/2022 14:42

Which doesn't include the latest pe valuation which should push it north of 5000

[riverman77] 04/8/2022 13:10

Just to clear up any confusion they've just announced the NAV as at end of July as 4946p.

[riverman77] 04/8/2022 12:34

Yes I think you're correct - wording not very clear in my view, but I can see NAV dropped from May to June even though they reported a positive portfolio return (so must be the dividend causing the fall). So we're looking at a 25% discount currently, which look good value, albeit broadly in line with its average.

[mike the mechanic] 04/8/2022 11:30

I don't agree riverman. The NA statement says that the 222p divi has been accrued so I expect that to mean that it isn't included

[riverman77] 04/8/2022 10:18

You need to take off the special div of 222p - would take latest NAV to around 4660p

[spoole5] 26/7/2022 13:38

Latest NAV 49 so a 27% discount currently

[riverman77] 22/7/2022 11:22

Likewise sold out. On a 20% discount still looks cracking value on an absolute basis, but less so versus other (broadly comparable) funds and against its own history (rightly or wrongly 20% discount is typical for this fund). Obviously not exactly the same but PIN is on a 45% discount.