Dunedin Enterprise Inves... Share Discussion Threads

[spob] 18/3/2016 08:14

yes thats excluding the citysprint gain

[eeza] 18/3/2016 07:59

"In the year to 31 December 2015 your Company's net asset value per share was largely unchanged at 505.8p"

I read that as being excluding the CitySprint realisation.

But haven't read all, as yet.

:-)

[skyship] 18/3/2016 07:51

Yet again a disappointing performance by DNE. NAV inc. CitySprint gain = 505.8p. Saved by the 16p dividend (v. welcome that; and glad to see you were right there Eeza) and the liquidation programme ahead.

[eeza] 18/3/2016 07:17

Results out



Dividend = 16p
XD 28 April
Pay 18 May

[eeza] 17/3/2016 09:55

I think a SD to return cash to s/hlders, given that the liquidation vote isn't until May, and may not be passed.

[skyship] 17/3/2016 09:21

I suppose we could see a Special Dividend; but perhaps more likely that they will suspend dividends as we await shareholder authority for the liquidation.

Then, throughout the programme, it is more likely that we will see occasional Tenders rather than dividends.

Hopefully tomorrow's statement will confirm the veracity of their portfolio valuations. Their excellent CitySprint exit came up trumps; but other than that their portfolio performance has been poor. If they manage to exit at current valuations then the potential 3-4yr return is very attractive in a low interest rate environment.

[eeza] 17/3/2016 08:44

From Edison

"DNE has a policy of distributing at least 50% of capital gains so realisations will create the prospect of a tender offer being announced to buy back shares, as well as the possibility of special dividends."

Results due tomorrow, Friday 18 March.

So, with £26.1 (22.8 capital + 3.3 income) from the CitySprint sale less £7.3 (into the new investment) = £ 18.8 net
Cash = £5.3 at 18 Feb (after allowing for commitments).

So taking Edison's point of releasing 50% of gains, (and 25.75mill shares issued) we may get a Special dividend of 10.3p.

[nk104] 15/3/2016 13:28

Having made a rather decent turn on NRI and APT (waiting patiently with LSR but I think it will come good in the end), I've hopped on the DNE Express. Though slow-moving buffer liquidation may be more like it.

Still, it's all about redistribution to the patient.

[skyship] 11/3/2016 12:07

pvb - my experience is that if I worry about a stock - best to ditch it; move on, plenty of other fish in the sea.

The more reasoned approach might be to look at what they have to say in the RNS next Friday; and possibly thereafter in the Liquidation Circular. Obviously you should then be in a better position to make a rational judgement.

[pvb] 11/3/2016 10:18

My experience is, after tendering 100%, I get pretty well the advertised proportion plus a tiny fraction on top.

I am just trying to think of the best way of dealing with all this given the realities, and the concern over a shrinking fund with a rising TER and indefinite timescale.

[skyship] 11/3/2016 07:35

Depends on the stock and depends on your provider. With one of the past MTH Tenders, the rate was 16% and I got 53% success with Sippdeal. You must always Tender 100%; unless very good reasons for not doing so...

[pvb] 10/3/2016 23:23

Only to a negligible extent in my experience.

[eeza] 10/3/2016 23:20

There's nearly always overage, if you tender for more than the minimum.

[pvb] 10/3/2016 22:32

receiving overages due to the Group Nominee anomaly

Never experienced that myself.

[skyship] 10/3/2016 11:35

Also with Tenders you need to factor in the extremely profitable tactic of assenting to Tenders at NAV, receiving overages due to the Group Nominee anomaly, then reinvesting back in at the market share price on usually a 15%-20% discount...often more!

[skyship] 10/3/2016 11:32

pvb - that certainly hasn't prevented very profitable runs from the other liquidating PE Trusts - HPEQ, LMS, MTH & NRI.

[pvb] 10/3/2016 11:20

As I see it, the only snag being the tender(s) will generally just release a fraction of any new money invested with the remaining capital being tied up for an indefinite time in a smaller company with proportionally higher expense ratio.

[skyship] 10/3/2016 09:50

jhan - I too have 523p as my anticipated current NAV.

As to the stats, I look for a 3yr liquidation from 30th Jun'16. Assuming a Final Redemption Price of 480p then at 340p the Gross Redemption Yield = 11%pa. A more conservative, possibly over-conservative 450p would deliver a still acceptable 8.85%pa - certainly acceptable in the continuing low interest rate environment.

It is likely of course that they will follow the well-trodden route of interim Tenders - hope so at any rate!

[jhan66] 08/3/2016 15:14

Results in ten days time.

£86M company. 25.75M shares @ £3.35.
Previously declared assets £5.12/share plus 11p top-up from City Sprint sale. Trustnet estimate £5.05 but I don’t see why this shouldn’t be closer to £5.23 nav
Roughly 36% discount. That’s not much more than the long term although recent average (DEC 12-14) was more like 20% (16p dividend in April two years ago)

I’m hopeful of another special dividend next month. Plus director’s recent statement of managed wind-down surely means this discount will narrow soon.
I’d like to think £4.00 is a reasonably easy target.

[skyship] 08/3/2016 10:09

Hah, I did so for a few this morning! Now at 7.5% allocation; and may go higher when I have some more cash. Have also bought into APEF for the same reasons, as you may have seen.

[badtime] 08/3/2016 09:38

Sky u can top up at 333p

[eeza] 19/2/2016 22:17

This is from the latest Edison note of 5 Oct 2015

Link to Pdf -


"Historically, management reports typical valuation uplifts of c 20% on the sale of investments and this indicates the potential for significant valuation gains to be realised as mature investments are exited. DNE has a policy of distributing at least 50% of capital gains so realisations will create the prospect of a tender offer being announced to buy back shares, as well as the possibility of special dividends."

Also have 2 investments tied to the O&G sector

"The sustained lower oil price led to valuation reductions for two portfolio companies:
 EV Offshore, a leading provider of high-performance video cameras for well diagnostics,traded strongly following investment in June 2014, supporting the valuation moving from a cost to an earnings basis. Although it operates in a growing niche, primarily supplying the production side of the industry, and so less affected by the fall in oil price, trading weakened in early 2015.
Although business has improved in recent months, maintainable earnings expectations have been lowered, reducing the valuation to £5.8m, with the EBITDA multiple maintained at 9.5x.

 Premier Hytemp, a provider of engineered steel, nickel alloys and machined components to the oil and gas industry, has been most affected by the oil price fall due to its dependence on exploration expenditure. While lower demand from key customers led to DNE writing down its investment to asset sale valuation in 2013, reduced demand and lower margins following the oil price fall in late 2014 have seen the valuation reduced by a further £1.0m to £3.6m."

[skyship] 19/2/2016 12:11

The basic stats are that the Sept'15 NAV was 512p. Add in the £2.9m upside from the CitySprint sale; and the NAV may be c523p, so the discount = 33% @ 350p.

As an example of possible returns:

# a 480p redemption by 30th Mar'19 achieves a 10.7% Gross Redemption Yield.
# a 490p redemption by 30th Mar'19 achieves a 11.4% Gross Redemption Yield.
# a 500p redemption by 30th Mar'19 achieves a 12.2% Gross Redemption Yield.

I've added DNE to the SL thread, where it follows CDI, HPEQ LMS, MTH & NRI in the long list of liquidating Private Equity trusts. All bar CDI have proved very profitable to stay with throughout the process.

Personally I lost internet connection (a 4week ongoing problem here in La France Profonde!) just 5minutes before yesterday's RNS, so ended up having to pay 345p today rather than perhaps 310p yesterday!!!

[bit thick] 19/2/2016 11:20

"BT - where did you get your NAV from?" Well spotted, I looked at the wrong figure! ADVFN has it at 510.

[houseofpain1] 19/2/2016 10:50

Excellent news yesterday from DNE. Given that the company still has some large commitments still to meet, the managed wind-down/realisation process is likely to be protracted but at a 35% discount to Sept 15 NAV, there is plenty of meat on the bone worth waiting for and, in any event, I think there is a significant chance that a secondary sale of all the fund's assets is considered....

Still worth buying IMO.