Cip Merchant Capital Share Discussion Threads

[skyship] 27/11/2021 13:37

3 encouraging trades declared late:

# 50k bt @ 49.0p
# 50k bt @ 49.5p
# 50k bt @ 51.0p

Hopefully CFE back in for a few; continue to mop up until reaching the magical 30% mark!

[boystown] 26/11/2021 10:51

ST might include it as a tip for 2022 though?

[ntv] 26/11/2021 10:37

Alright for some!!

[skyship] 26/11/2021 10:16

It was back in July (see post Nos 60-63) that Corporation Financière Européenne bought more stock in the mid 50s to take their stake up to 29.14% - since then - nothing.

With the share price now at 49p; will they perhaps be tempted yet again to make a lowball offer. If they do nothing their £8m investment is just dead money. They can't sell it; surely the only way has to be forward.

We can't rely on ST to massage the share price again as he is on holiday until 5th Jan'22!

[starpukka] 22/11/2021 15:06

Out of this today for a 9% loss. Not a large position thankfully. Adhered to my stop loss policy.

[skyship] 18/11/2021 15:42

I also remonstrated with the Chairman to "Move with the times. Fees on cash are no longer acceptable – Period!"

In view of his previous posts as Chairman of two separate fund management groups; you would have thought that he might have understood this.

[shaker44] 18/11/2021 13:57

ST seems to have a blind spot with management like this. Maybe taken in by their sweet talk

[badtime] 18/11/2021 12:35

Thanks Sky

[skyship] 18/11/2021 10:46

So, without another ST tip in the IC, CIP has again drifted back to a 38% NAV discount.

NAV comparisons are always difficult due to timescale choices. But if we quite reasonably look at the 12month period of end Oct'20 - end Oct '21, then the NAV has risen from 75.8p to 90.2p – a rise of 19%. Acceptable in itself, but pretty derisory when compared with the FTSE100 (+29.6%); the FTSE350 (+30.5%) & the Small Cap Index (+45.6%). This last is the sea in which CIP attempts to trawl.

The continued under-performance is stark; and I have written to the Chairman twice on this subject; and of course on the appalling management fee structure, the 2%/20% successful hedge fund formula.

As we know however, the fund managers have shown themselves to be total rubbish; so criminal that the Chairman hasn't yet acted on the matter.

Seems as though ST again or corporate action are required to get us back over 60p.

More anon...

[value hound] 03/11/2021 15:50

Well, they're doing something at least, but is it any good?

[strathroyal] 27/10/2021 12:36

I see that Ravensworth International bought 20M shares in HSS group yesterday, wonder if CIP have sold most/all of their holding.

[skyship] 11/10/2021 16:43

Indeed, intriguing. If that is CFE buying then it would take them through the 30% level which would trigger a bid.

[badtime] 11/10/2021 16:25

That 995k :)

[skyship] 11/10/2021 14:28

Thnx to Simon Thompson last week, 62.5p bid.....so let a few go to reduce an overweight allocation.

[boystown] 07/10/2021 13:56

Looks like he's mulling it over then! :-)

[skyship] 06/10/2021 14:00

To write/email to Adrian Collins:

ADDRESS:
CIP Merchant Capital Ltd
3rd Floor, Le Truchot
St. Peter Port
GY1 1WD Guernsey

Email:
# [e-mail]
Or
# [e-mail]

…perhaps both

[shaker44] 06/10/2021 10:58

That's crazy. Allows for far too many missteps. Just under the radar I guess. Surprised ST commentary didn't boost it more but maybe as its a down day

[skyship] 06/10/2021 10:35

Interesting to note that if you strip out the £9.7m cash, then at 56p the discount to the mainly listed portfolio is 48%!

[shaker44] 06/10/2021 08:46

You make a very good point. These Fat Cat deals need trimming back from such obscene levels.

[skyship] 06/10/2021 08:39

ST again right to highlight the value here; but I wish he would take the Board to account for their failure to replace the incompetent and massively overpaid investment managers.

The management contract gives them the infamous hedge fund remuneration package of 2%/20% (2% basic fee + 20% of gains). Worse still, they levy that 2% on cash balances.

Hedge funds have in recent years responded to criticism of rewards for failure; but Chmn Adrian Collins (also Chair of Liontrust Asset Management) has failed to get to grips with the situation.

The best thing that could happen here is for Corp. Fin. Euro to return with a more sensible offer - they now own 29.1%; and surely this time around shareholders would accept a bid of c75p. Sure, still an 18% NAV discount; but a mighty 36% up on where we are now. Hence the Value at current levels...

(NB: Incidentally, do please write/email Adrian Collins - as Chairman he is meant to represent our interests - not his own!)

[boystown] 05/10/2021 20:50

Tipped by Simon Thompson who concludes with:

The current 40 per cent share price discount to NAV not only fails to recognise the dramatic improvement in CIP’s investment performance this year, but the possibility of M&A activity. Buy.

[skyship] 05/10/2021 13:47

NAV slipping back a bit - now at 91.71p. Sp moving in the same direction. Now on offer @ 55p for a 40% discount.

[skyship] 12/9/2021 11:34

I hold two small investment companies - CIP with a MCap of £32m and a current NAV discount of 37.7%; and the much smaller PRIM with a MCap of just £6m and a current NAV discount of 38.2%.

# CIP mainly invested in UK listed stocks - PRIM wholly invested in private pre-IPO cos.

# The investment managers of CIP hold 8.2%; The Exec. Chmn of PRIM holds 23%

The Risk/Reward ratio for both seems extremely attractive

[joe say] 09/9/2021 08:08

Went to buy in my HL account - but they don't trade this one

Why would that be?

[badtime] 07/9/2021 12:43

Nothing available online with YI