Doric Nimrod Air Two Share Discussion Threads

[grahamg8] 19/1/2014 17:31

onehand you can't look at DNA2 in isolation. Check out my posts on DNA #4 and DNA3 #2. As I suggeted DNA2 was overpriced and it has fallen, DNA seems to be the benchmark and down slightly whereas DNA3 has risen. Appx movements -5.5%, -1.5%, +0.9%. The relative prices have simply been sorting themselves out and now more nearly represent equal value than before IMO. You wont be surprised to learn that based on the sentiment expressed back in November I bought 1 and 3 and steered clear of 2. Got it right for once.

[onehandeconomist] 01/1/2014 11:56

This seems a good one to buy and hold and be happy with the yield. The risks seem to be well documented - mainly whether they calculated the residual value right in year 12 and, if you're a trader, the exposure to interest rate rises. But why is the price so weak? RSI is on the floor. c.6% off the high. Is this just early buyers, trading out? If you bought for yield and got two years of that yield handed to you as capital gain, may be I would cash out too. Or are we missing something more sinister?

[jaws6] 24/10/2013 10:57

on rise today again

[badtime] 09/10/2013 11:04

ex div today

[jaws6] 28/8/2013 12:22

hxxp://www.nimrodcapital.com/?page_id=186

For dna3 info

[extrader] 28/8/2013 11:05

Hi speedsgh,

AIUI, the answer's here :

...once the lease has expired, the aircraft are likely to be sold and investors paid out from the residual value."

Because aircraft are depreciated in a shorter period than their economic/commercial lives, there is (other things being equal) a gradual build-up of a surplus, which in this case has been projected to be sufficient at the 12 year point to allow the 169p payout on resale/refinancing.

HTH

[speedsgh] 28/8/2013 10:48

Trying to get my head around the DNA3 investment model.

"DNA3's investment strategy is the purchase of four A380 aircraft, scheduled for delivery from September to November 2013, and leasing them to Emirates, each for a period of up to 12 years. DNA3 will aim to pay a dividend of 2.0625 pence per share per quarter, equivalent to an annual dividend of 8.25 per cent per 100 pence share. Under the terms of the lease, the airline is responsible for insurance and all other service, maintenance and repair costs. In addition to the regular yield of 8.25 per cent, once the lease has expired, the aircraft are likely to be sold and investors paid out from the residual value."

The dividend is pretty straight forward + attractive. However I can't quite get my head around return of capital in the future. Presumably the planes are constantly depreciating assets.

In post #6 WirralOwl notes projections of £1.69 capital on redemption i.e. pay current offer price of 109.5p now, get back projected 169p on redemption (are we assuming in 12yrs time?) and benefit from a fixed income of 8.25p per annum in the interim? Where does the projected £1.69 figure come from?

Any help greatly appreciated. TIA

[valhamos] 31/7/2013 13:05

I cannot understand why the company doesn't have US dollar as its functional currency (as is the case for most aircraft leasing companies - aircraft sales and leasing are dollar denominated businesses). Then the accounts would be a lot simpler - all rents would be in dollars and no exchange rate fluctuations. Doric seem to be making things overly complicated. Not sure how their auditors have allowed them to have GBP as the functional currency.

[jaws6] 31/7/2013 09:05

RNS on report

[jaws6] 24/7/2013 08:47

DNA3 ticked up

[badtime] 10/7/2013 09:40

ex div today

[wirralowl] 02/7/2013 16:11

Well done if you managed to get in on the initial offering, if so you'll already be showing a nice gain and an 8.25% div to come! Yes, saw the news, all looking good for DNA2 and nice quarterly dividend to receive.

[jaws6] 02/7/2013 15:37

yes .I got them.hope you get most info in that link post 5.
hope you seen dna2 news today too.

[wirralowl] 02/7/2013 15:27

Thanks very much jaws, did you go for any? I see they are targetting 8.25% at issue price (£1), against current buy price of 110 equates to 7.5%, which is roughly in line with the other DNA issues. Projecting £1.69 capital on redemption based on current independent valuations, so looks pretty good.

[jaws6] 02/7/2013 13:54

Wirral
here you go

[wirralowl] 02/7/2013 11:36

jaws, do you have any info on DNA3, struggling to find any myself. Do you know what the projected dividend level is they're targetting? TIA.

[badtime] 02/7/2013 09:32

quiet thread

[jaws6] 02/7/2013 08:59

small rise ?
dna3 started today

[wirralowl] 12/10/2012 14:22

New factsheet out and divi declaration.

The purchase of the final 2 airbuses last week has allowed a nice 50% increase in the quarterly dividend to 4.5pps (as per the company's initial investment strategy) which should now equate to 18p pa, and a yield at today's buying price of 7.89%.