Downing Strategic Micro-... Share Discussion Threads

[steve3sandal] 05/4/2022 23:28

I like it even less now. Downing 1 VCT have their DSM holding down as Liquidity. So this needs to be turned into cash at some point to make qualifying VCT investments. There aren't any obvious buyers for 22% of DSM stock apart from retail and we don't have the appetite to do this in that size. Already the VCT had dropped £1m on M2M basis and would have been better to put shareholders funds in a box for safekeeping. Downing 4 Aim is a newbie but it's going down the same road IMO. I like reading DSM letters, always a good story and I've previously held for discount and underlying improvement, unsuccessfully. No evidence tome that DSM or D VCTs are worth holding sorry.

[steve3sandal] 05/4/2022 22:25

I don’t like such a large cross holding. I like it even less where it’s done poorly for shareholders. I’m not currently a holder in either. When I get a moment I’d like to understand why the VCTs have bought going on for a quarter of the shares. Not going to be qualifying shares I’m staggered this is the best thing to do with the as yet uninvested VCT cash.

[hugepants] 05/4/2022 21:05

Downing VCTS have increased their ownership from 19% to over 22%

Held this previously and it looks quite interesting again on a 22% discount and with 10%+ of the NAV in cash

[brwo349] 01/2/2022 12:30

wow NAV has jumped to 88.9p

[kev0856153] 31/1/2022 14:16

fwiw two of the portfolio companies -- Digital Box and Venture Life -- are both up 35% today. Numbers 1 and 2 spot in the %Gainers leader board.

[red ninja] 10/12/2021 12:36

Consumer tech firm Tactus partners with German IT retailer NBB
The firm has linked up with NBB to distribute its series of Geo devices into the DACH market


BY JON ROBINSON
00:01, 6 DEC 2021

A North West consumer technology firm has partnered with a German IT retailer in its first European deal.

Tactus Group has signed a deal with Notebooksbilliger (NBB), one of the largest German online retailers for consumer electronics and it caters to consumers and small to medium-sized businesses across the German, Swiss and Austrian (DACH) region.

The Warrington company has linked up with NBB to distribute its series of Geo devices into the DACH market.

Werner Selch, Notebooksbilliger CPO, said: "In times of non-reliable supply chains and higher prices for the end consumer, Tactus has done an outstanding job to extend into the DACH region.

"We are thrilled to accompany the rise of a new notebook brand in Europe with an up-to-date operating system and high product quality."

[melloteam] 11/11/2021 13:06

Just to let shareholders and prospective investors know that International Biotechnology Trust, Primary Bid, Downing Strategic Micro-Cap Investment Trust and Amati will be presenting at Mello Events Trusts and Funds Webinar. The event is free! Click here to register:

There will be over 200 investors attending and these are very popular shows with company presentations, fund manager and investor interviews, and panel sessions. The full programme is as follows:

5.00 pm Mello welcome and introduction to company presentation by International Biotechnology Trust
5.30 pm Investment Trust presentation Paul de Gruchy
6.00 pm Company presentation by Primary Bid
6.30 pm MoneyMakers Jonathan Davis and Simon Elliott
7.00 pm Company presentation by Downing Strategic Micro-Cap Investment Trust
7.30 pm Deborah Fuhr presents on ETFs
7.45 pm Company presentation by VectorVest
8.00 pm Company presentation by Amati
8.30 pm Investment Trusts panel featuring Mark Bentley, Ed Shing, Simon Elliott, Jonathan Davis, Karin Schulte

[red ninja] 09/9/2021 13:21

Tactus has acquired BIST Group ie B2B IT hardware provider Business IT Support Team (BIST) :-

[red ninja] 06/9/2021 11:51

DSM re-rating a bit today, maybe due to no small extent to Volex powering upwards over the last few days.

Volex has been backed by SCSW, Shares Mag amongst others.

I additionally hold Volex separately from DSM. DYOR.

[red ninja] 02/9/2021 16:03

I agree there are doubts about VLG. I am hoping that future results will resolve qualms about VLG as indicated by Cenkos and Simon Thomson. However, I have been disappointed before.

[makinbuks] 02/9/2021 15:38

Venture Life is a company I was very keen on, but the latest update has given me serious concerns. I think its wise and safer to sell on a profit warning because there's usually more to come

[red ninja] 02/9/2021 12:36

I agree the portfolio looks like it has good potential so 15% seems possible.

Of the new toeholds :

-Tactus appears to have done best.

-Venture Life Group has done worst, but hopefully this is only a short term investor over reaction, future results will give a better indication.

Thus, I am hoping that the next 4 years 4 months will provide good results.

We'll see, as a holder I am biased. DYOR.

[makinbuks] 02/9/2021 12:01

I think the troubles experienced going back to the original investment s in 2017 have been well documented. The question is have they got it right now? Are we really sitting on a coiled spring?

My view is that there is a strong case for pretty much each of their investments to re-rate by 15% in an even market environment in the next 6 - 12 months and the discount could reasonably halve in that time too. So there a 25% or so gain to be made.

Beyond that, can they spend the 12% cash wisely, can they reinvest realised funds wisely and what can they do to increase their size to a sustainable level? These are hard to answer

[red ninja] 02/9/2021 11:19

I see today that NAV has reached 95.46p and with three years of dividends at 3.65p that makes total return 99.11p. So almost back at the £1 issue price at first day dealings 9th May 2017 ie roughly 4 years 4 months ago.

[riverman77] 01/9/2021 09:31

Good read and a nice collection of companies. Was trying to guess what the Toehold D investment might be - they say it's a discretionary retailer trading under 5x ev/ebitda - given this is a microcap fund we can narrow this down to companies with market cap below 150m. My guess would be SCS or perhaps one of the car dealers.

[red ninja] 31/8/2021 18:36

Downing Strategic Micro-Cap Investment Trust plc is pleased to announce the publication of its new investor letter :-

[red ninja] 26/8/2021 09:23

Volex announces acquisition of Irvine Electronics :-

[red ninja] 23/8/2021 09:15

Synectics wins a new contract in Mexico :-

"Synectics plc (AIM: SNX) , a leader in the design, integration and support of advanced security and surveillance systems, announces the award of a contract worth approximately £1.0 million for the Dos Bocas refinery in south-eastern Mexico.

Synectics and its integration partner, Mathieson Elco, have been awarded a contract by Samsung Engineering to provide safety monitoring and surveillance equipment for the Dos Bocas refinery in south-eastern Mexico, being constructed for the Mexican state-owned oil company, PEMEX (Petróleos Mexicanos). The project, based on Synectics' recently-released COEX C3000 4K camera stations, will be completed early in 2022 with delivery commencing later this year."

[spectoacc] 20/8/2021 19:54

True. Fwiw just seen HRI's 5yr performance in IC: +196%. Nearly double that over 10 years, so been consistent too. 12% discount. Think they said the smallcap index (or at least the one the IC quoted) was +86% over 5 years.

Obviously DSM suffered from several stock-specific God-awful picks, but still - that 15% pa been achieved elsewhere, in the same sphere, and some. Even the index not been far off.

In DSM's defence, HRI been more growth, DSM are more value, and value has to be due a run.

[makinbuks] 20/8/2021 17:09

Also a fair point but too hard to get that kind of timing right

[spectoacc] 20/8/2021 17:06

Fair points. Do much prefer the look of the portfolio now, with RGD fiasco starting to recede.

Isn't enough to get me to punt tho, expecting the markets to have a swoon before long, & micros usually first in the firing line.

[makinbuks] 20/8/2021 16:59

Yes 15% compound year on year on year is unlikely in a public market. You'd have to be able to keep identifying underpriced assets and recycle gains into them on a regular basis. But in the shorter term look at their investments and ask could this be up 15% in a year? In pretty much every case the answer is yes. If they achieved it and there was a narrowing (say halving) of the discount alongside youd be happy enough. Whether the trick could be repeated in 2023 is another story

[spectoacc] 20/8/2021 16:52

Hmm but at cost of making themselves even smaller.

Not a holder here, took my medicine far too late after IPO :)

(15%pa compound over 5yrs would be NAV of 201p, never say never but really can't see it even in the next 5yrs).

[makinbuks] 20/8/2021 16:49

Completely agree Spec, first we could see a decent rise in NAV as the portfolio looks nicely positioned, second they could look to spend a decent chunk of the 12% cash in a tender offer much closer to the NAV and narrow the discount that way