Downing Strategic Micro-... Investors - DSM

Downing Strategic Micro-... Investors - DSM

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Downing Strategic Micro-cap Investment Trust Plc DSM London Ordinary Share GB00BF0SCX52 RED ORD GBP0.001
  Price Change Price Change % Stock Price Last Trade
-1.75 -2.7% 63.00 11:00:15
Open Price Low Price High Price Close Price Previous Close
64.00 63.00 64.00 64.75
more quote information »
Industry Sector

Top Investor Posts

cousin jack: I’ve attended talks Ms Mackenzie has given at investor conferences and she certainly presents very credibly about analysing companies and holding their executives to account. On that basis I was previously an investor. A number of the Trusts holdings are in companies which had problems but were seen as having recovery potential. However the lack of progress over a longish period of time led me to the conclusion that this was a jam tomorrow investment with a high opportunity cost and so I sold around a year ago. I am watching with interest but still not seeing the progress which Judith’s presentations suggested should be achieved. I would think that by now her hat would be on a shoogly peg.
strollingmolby: Downing staying just under the 5% threshold at Tekmar (TGP): HTTPS://
red ninja: Yes DSM still buying, but others investor buying in. The market as a whole seems to be rising.
red ninja: Mmm saw the 15k trade at 55.75p, but the extra 0.75p could be due to buying at 16:10. In the first 30 minutes or last 30 minutes they sometimes sting you with a higher price. The buyback seems to have given confidence to investors to buy and it looks like DSM have only purchased less than 100k of their own shares. Scheme will end on 2nd November 2020 so interesting to see how share price strength goes after that, RGD is also struggling due to the pandemic at around 20% of DSM (by secured loan note) IMO it casts a bit of a shadow over DSM.
red ninja: The launch date for the trust was not opportune. I like the bit in the reports where they say they are targeting an annual return of 15% although not in the current investors letter. Maybe they are learning. They are investing in two new holdings ie Toehold 1 + 2, but they appear to be waiting to buy at the correct price. Hopefully they have not picked turkeys. Hopefully the trust has better days ahead, but there is still a recession to get through. Some buys at 52.4 and above. Personally I'd wait a bit as price always seems volatile with DSM. Then again Volex is pushing higher maybe I am too negative.
red ninja: Septembers Investors letter making the case for DSM as normal :- "Despite our caution, there are reasons to be cheerful with this portfolio from both a downside protection and an upside perspective. Firstly, almost 21% of the portfolio is in cash and another 20% is in loan notes where their value is not influenced by volatile stock markets. That makes over 40% of the portfolio which is entirely unaffected by volatility. Volex comprises just under 16%, and is trading robustly through this period. Bar a recession, we are hopeful that the company will grow earnings this year and should continue to re‐rate. A further 20% is comprised of businesses which we think aren’t trading much higher than what we consider to be a minimum valuation given the quality of earnings and balance sheet strengths underlying. From an upside perspective, the opportunity is significant. Not only is there over 100% of upside potential to intrinsic value in the portfolio, but investors today can access that upside at a 27% discount to current NAV. That points to a 64% ‘double discount’. The discount has historically traded significantly narrower than the current gap and we expect that discount to narrow as value creation catalysts are delivered, and the wider market begins to appreciate the quality of some UK smaller companies."
red ninja: Well the challenge to Gamma should come from the groups they mention, but also DSM. I mean with RGD they were very much the activist investor. RGD does seem to me in turnaround with DSM approved managers, but it has been dealt another challenge with Covid-19. If the debt burden ever becomes too much for RGD I believe the loan note holders might be forced to do a loan for equity swap. However, I don't believe that is the case at the moment and hopefully will never come to that.
picaroon: The 49th place out of 49 is a ranking of fund managers playing in the same end of the market. Not currently an investor.
cafe1: It's a bit reductive to lump this investment in with general value investing. Whilst it is a value style, this type of investment is a world away from a a general value investment in say larger cap stocks. Are you saying Judith's style is outdated or just value in general? I'd say value stocks are out of favour, rather than the style being "outdated" She may have underperformed the wider market, but the performance of sub 150m stocks has been pretty lacklustre. I have a small amount in this fund and was expecting a bumpy ride, but I view it as long term money and have confidence that it will come good. What this trust does illustrate is that AIM is shark infested waters, and if an experienced team like this can get the wool pulled over its eyes by directors that are out for themselves, then private investors have no chance. As a matter of interest, do you invest in this trust? I ask, because it was always a value play, and given your views on Judith would be surprised if you were.
red ninja: DSM has lost around 31% of investor money. WPCT has lost around 67% of investors money, but based on a unquoteds that could be more so do not see the comparable argument.
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