Downing Strategic Micro-... Share Discussion Threads

[weatherman] 27/6/2023 10:28

JNEO share price is rising strongly, now through 200p

[weatherman] 09/2/2023 15:13

DSM also holds JNEO which has issued a good trading statement today.

[red ninja] 09/2/2023 15:06

DSM held over 8% of ADept. Tech which is being bought for 201p a share, subject to shareholders vote., previously the mid price was 115p a share :-

RECOMMENDED CASH ACQUISITION
OF
ADEPT TECHNOLOGY GROUP PLC
BY
THETIS BIDCO LIMITED
a member of the Wavenet Group

to be implemented by means of a Scheme of Arrangement
under Part 26 of the Companies Act 2006

Summary

· The boards of Thetis Bidco Limited ("Bidco"), a member of the Wavenet Group and also a subsidiary of Macquarie Group Limited, and AdEPT Technology Group plc ("AdEPT") are pleased to announce that they have reached agreement on the terms and conditions of a recommended all cash offer by Bidco for the entire issued and to be issued ordinary share capital of AdEPT (the "Acquisition"). The Acquisition is intended to be implemented by means of a scheme of arrangement under Part 26 of the Companies Act.

· Under the terms of the Acquisition, each AdEPT Shareholder will be entitled to receive:

for each AdEPT Share: 201 pence in cash

· The Acquisition values the entire issued, and to be issued, ordinary share capital of AdEPT at approximately £50.3 million.

· The price per AdEPT Share represents a premium of approximately:

- 74.8 per cent. to the Closing Price of 115 pence per AdEPT Share on 7 February 2023 (being the last Business Day before the date of the commencement of the Offer Period); and

- 77.4 per cent. to the volume-weighted average price of 113 pence per AdEPT Share for the three-month period ended 7 February 2023.

· As part of the Acquisition, the AdEPT Board has resolved to cancel the interim dividend of 2.50 pence per AdEPT Share in respect of the six months ended 30 September 2022, which was announced on 15 November 2022 with a record date of 10 March 2023 and a payment date of 7 April 2023. If for any reason the Acquisition does not become Effective the AdEPT Board intends to reinstate the interim dividend of 2.50 pence per AdEPT Share with the record date and payment date to be confirmed at the time of reinstatement.

· If any dividend, other distribution and/or other return of value is proposed, authorised, declared, made or paid or becomes payable in respect of AdEPT Shares on or after the date of this Announcement and before the Effective Date, Bidco reserves the right to reduce the Consideration by the amount of any such dividend, other distribution and/or other return of value.

[weatherman] 09/1/2023 09:26

Some positive action today to narrow gap to nav.

[riverman77] 09/11/2022 09:24

Some sort of tip I presume? Share price up 14% for no apparent reason.

[ohisay] 02/11/2022 03:23

Direct link ..


Thx RN..

[red ninja] 28/10/2022 20:12

Judith Mac. on Vox Markets

hxxps://www.voxmarkets.co.uk/articles/vox-markets-fund-manager-series-judith-mackenzie-of-downing-asset-management-f6461eb/

[weatherman] 31/8/2022 07:16

Investor letter issued.

[ohisay] 16/8/2022 10:15

As mentioned earlier, DSM has been the top performing trust in the sector over a 12-month period and year-to-date from a NAV total returns perspective, but what is surprising is that this has not translated into share price performance. DSM’s discount has been trending lower since the start of the year, with it currently at -21.2% which is significantly below its five-year average of -9.9% but is also a wide discount in absolute terms. This in itself is unusual because the trust traded at a premium in the first two years following its IPO, albeit trending lower over this period, before widening significantly during the market volatility in 2020. It is yet to fully recover and with a three-year average discount of -16.5% this has remained a feature of the trust more recently. Up until now the board has been reluctant to actively buy back shares with the chairman – in our view, rightly – stating there was “no point in trying to stand against the tide” during the height of the coronavirus pandemic. The highly concentrated portfolio that ranges between 10-25 holdings, investing in the riskiest area of the small cap universe, namely micro-caps, meant the board wanted to ensure liquidity was maintained. However, the persistency of the discount has led DSM’s board to buy back shares regularly at wide discount levels with the latest purchased at an average discount of 17% in May 2022. In its most recent annual report, the board provided clarity around the plans for an investor redemption opportunity in May 2024, enabling shareholders to redeem or have a matched sale for up to 50% of their holding. For these reasons along with the uniqueness of the managers’ investment philosophy in the smaller companies’ space, we believe DSM may provide investors with an opportunity to diversify their current portfolio with the wide discount, and that the likely continued share buy backs will be accretive to shareholders.

[weatherman] 27/7/2022 09:59

Looks like good results from Hargreaves Services

[melloteam] 15/5/2022 22:21

Mello2022, the popular three-day Investor event takes place on 24TH-26TH MAY at the Clayton Hotel & Conference Centre, Chiswick, W4. The breakdown of the three days is as follows:

Tuesday 24th May, 9am - 6pm - Mello Investment Trusts and Funds (WE ARE GIVING AWAY 20 FREE TICKETS TO THE TRUST AND FUNDS EVENT - THE FREE CODE IS FIRST20TF)

Wednesday 25th & Thursday 26th May, 9am - 6pm - Smaller Growth and Mid-Cap Companies (Tickets for 1 day are £115 and tickets for 2 days are £189. To get 50% off, use code MMTADVFN50).

Just to let shareholders and prospective investors know that DOWNING SMALL AND MIDCAP INCOME FUND will be among the Trusts and Funds attending. There will also be keynote speakers such as Lord John Lee, Andy Brough, Rosemary Banyard, Clarke Carlisle and Gervais Williams.

For more information, please visit the event webpage:

[red ninja] 09/4/2022 09:32

Spike yesterday seems to have been due to some after hours listed buy trades
ie 500k (number), 138k and 25k

Interesting to see if Downing funds were the buyers or an outside body.

[red ninja] 08/4/2022 13:37

The have been paid out for around half the RGD loan with interest and HL's info is out of date.

[spectoacc] 08/4/2022 13:27

Interesting, thanks @weatherman - HL still showing two loans totalling c.21%.

[weatherman] 08/4/2022 13:17

The Real Good Food loans are now less than 10% of total assets, with hope of an exit that even leaves something for the ordinary shareholders - a news letter last year suggested 7-14p exit. Covid and lockdowns have had an impact on Real Good Food, with a weaker 2nd half last year, but hope of EBITA of £3-4m in a good year.

[spectoacc] 08/4/2022 12:27

Real Good Food = Real Bad Investment. 21% of DSM is loan notes to RGD, how secure are they? Shares at 2p.

But agree several of the other holdings look good, albeit you'd have to ask when holders ever see anything back - illiquid holdings don't lend themselves well to wind-up, & can't see them ever returning cash voluntarily at that market cap. No prospect of increasing the size of the co here either..

[red ninja] 08/4/2022 11:38

According to Shares Mags comparison on Micro Cap funds DSM is in 3rd position for "1 year" having said that they are down 6,3%.
Shares Mag comment :-

"Downing Strategic Micro-Cap’s (DSM) 22.3%
discount to NAV reflects some difficult early years
since its 2017 launch, although recent performance
has been encouraging.
In fact, Shore Capital believes ‘the market
rotation favouring value stocks, given the prospect
of further rate hikes, should provide a supportive
environment for DSM’s portfolio’ as the market
searches for value and the broker points out ‘most
of the structural changes required in the portfolio
companies have been implemented, and we
believe it is now a matter of reaping the rewards’.
Managed by Judith MacKenzie, the fund employs
a value approach and seeks to be influential
through taking strategic stakes.
Investors should note the portfolio is highly
concentrated at between 12 and 18 positions,
among them the likes of Volex (VLX:AIM),
Hargreaves Services (HSP:AIM) and Real Good
Food (RGD:AIM).
Three new positions that value investor
MacKenzie has added to the portfolio of late
include Centaur Media (CAU), the publisher of The
Lawyer and Marketing Week, as well as executive
search specialist Norman Broadbent (NBB:AIM)
and National World (NWOR), an ‘illiquid and
under-the-radar company trading at the bottom
end of the main market’ according to MacKenzie.
‘National World was a reverse into the regional
publishing assets of the old Johnston Press. The
management team are top calibre, with experience
seldom found in £70 million market caps.’

[weatherman] 06/4/2022 09:40

DSM has moved broadly in-line with many small companies over the past few months, although the NAV has held up better than many.

[spectoacc] 06/4/2022 08:17

Not unless that proxy is Roubles :)

Could conceivably work in DSM shareholders' favour, if the cash buys back the DSM shares at the large discount. But agree it's more than a little fishy.

"Of all the cash equivalent investments, you picked DSM?".

[steve3sandal] 06/4/2022 08:14

I too was thinking Splits (debacle). DSM buying back D VCTs in size at a large discount in due course I’d be challenging the lack of independence amongst the VCT Boards. It looks like VCT managers, Downing, have been supporting the DSM managers, Downing, with client money which is now worth less and has an illiquidity risk! Splits (debacle). It’s legal, VCTs can invest % in investment trusts and some do as a proxy for cash. DSM is not a proxy for cash, just ask shareholders.

[spectoacc] 06/4/2022 07:24

True, but still well below May 2017 issue price, so the only thing it seems to have going for it is discount.

[weatherman] 06/4/2022 07:08

Still a big discount to NAV.