Edinburgh Investment Share Discussion Threads

[chc15] 06/5/2021 12:23

Ex div today, holding up well. Any price predictions for end year?

[arja] 16/4/2021 13:28

EC2 , thanks for your most helpful response a week ago and sorry for delay in thanking you . also , steve3 and mozy and colonal A comments appreciated . I see it has just broken out and more in it I guess

[ec2] 08/4/2021 21:37

The effective double discount relates firstly to the shares in the portfolio which are mostly good quality value stocks that IMO can be considered cheap and at a discount to their longer term intrinsic value. The second discount is that of the EDIN share price to NAV. The NAV discount has in fact narrowed quite a bit of late, probably down to the new manager outperforming his benchmark over the last year since taking over. If he can continue to build out a good track record, I can see the discount narrowing further and even more so if the UK market in general re-rates. This combined effect would give continued double upward benefit to the share price. The shares and the market may have got a bit ahead of themselves in the last day or so, so I put a little bit of cheap and crude downside protection on yesterday, but will take off if I see continuing upward momentum which is appearing to be the case. EDIN is my largest position having averaged in over the last year whenever the share price was below 450p coupled with at the same time the NAV discount being over 10%.

[steve3sandal] 08/4/2021 19:20

That it has underperformed for years created the discount opportunity for a new manager and investors. It’s a different and better animal IMO and I’m glad I bought in anticipation.

[colonel a] 08/4/2021 17:08

Arja, IMO double discount usually refers to something like an IT being on a discount to its NAV, and the NAV comprising things which themselves are at a discount to their NAVs. That might be other Trusts or, perhaps, REITs.

[mozy123] 08/4/2021 14:09

Arja - underperformed for years.

[arja] 08/4/2021 13:47

ECT , can you be so kind as to explain why there is a double discount as I just noticed this Trust today with nice looking chart ?

[poikka] 31/3/2021 18:42

It's an ill wind.. It looks to me as if the covid fallout has proven to be a wake-up call for IT managers, many of whom decided on their portfolios every 5 years and then went to play golf. I remember despairing over the Keystone investment manager who held zero mining stocks at the time they were slashing costs. What happened? Their SPs rocketed and they dished out big divis. Well he got kicked out in the end. I don't propose that IT managers shouldn't hold strong long term convictions, but many of them should have been a site more nimble with parts of their portfolios. Let's see how long the enthusiasm for more active portfolio management lasts this time around.

[heialex1] 30/3/2021 17:02

Thanks for posting. Good write up, good holdings, and still about 5% discount to NAV

[unastubbs] 30/3/2021 06:57

tempus (the times) says buy today hTTps://ibb.co/1nLbbV6

[heialex1] 23/3/2021 15:16

Hi GoldpigThanks for your posts.Last summer I opened a position in FSV which traded at par and is higher regarded. Bounced nicely but like many that have been suggested here the underlying equities are still due a further recovery.Also noticed JMF that trades at a ~7.5% discount

[ec2] 22/3/2021 18:45

This is also my biggest position. Offers a cheap way to pick up quality underlyings which are in themselves already cheap and then there is the added benefit of the discount on the trust. Effectively you are getting a portfolio of quality stocks on a double discount.

[bluemango] 22/3/2021 13:03

Interesting Goldpig, thank you. My equivalent list (from largest down) is PEY, MRCH, EDIN, SLPE, SHRS, TMPL, DIG. Note PEY and SLPE are private equity trusts. Apart from other reasons, it avoids the issue of duplicated underlying holdings when owning multiple ITs. Yield on cost for PEY is 7.2%. Probably all will be 'hold forevers'.

[goldpiguk] 22/3/2021 11:53

Hi heialex1, With many income investment trusts at or near NAV, EDIN still looks an attractive buy. It is my largest ISA holding (15,000 shares) and I am fully invested here. The share price still suffers a little from negative sentiment following the sacking of the previous managers, and Majedie have yet to establish a proven track record at EDIN. The refinancing of the debenture in the next few months should help sentiment, giving annual savings of c.£5 million (from memory), and I would expect the discount to narrow substantially over the next year. Today I have made a small initial investment in Murray International (MYI), mainly to broaden my IT,ISA portfolio, rather than as a great buying opportunity. This is the first time I have bought an IT above NAV. IMO many IT's are currently looking a little over bought, but am happy to average in to new holdings and possibly build smaller positions in several IT's. These IT investments are intended to be held for many years and are not purchased for trading purposes. EDIN is an attractive long term hold. My portfolio of IT's is currently, (from largest to smallest by value): EDIN, DIG, MRCH, AAIF, HFEL, MYI, Goldpig

[heialex1] 22/3/2021 10:40

I'd say the discount to NAV is not deserved considering the upcoming rotation in to value. Makes this a good bet and when eventually the discount closes you get money for nothing...

[bluemango] 24/2/2021 00:25

Yes, significant, meaningful amounts.

[chc15] 24/2/2021 00:21

Some big director buys again today, all a good sign.

[ec2] 17/2/2021 22:03

James de Uphaugh back buying for his own account again today. Good to see his continued strong conviction. I similarly agree.

[ec2] 28/1/2021 23:49

James de Uphaugh picked up another 20k's worth in today's general market weakness. Looks a wise move as the UK market hit and bounced back up off a support level.

[poikka] 26/1/2021 15:07

Just reflects the market.

[chc15] 29/12/2020 10:11

Not sure this charting stuff works with investment trusts, I'd ignore that. Anyway good day today, edging towards 6.

[killing_time] 22/12/2020 07:11

See it on a few charts lately. Because of the hight of the pattern Its showing a pullback to around 500p so we are about there.

[kiwi2007] 21/12/2020 18:16

I'm not a charting expert but isn't this a classic head and shoulder formation that's forming?

[bluemango] 01/12/2020 13:48

My thanks to GoldPig for highlighting EDIN earlier this year and encouraging a closer look. Now 14% up on my average purchase price over several tranches, with a decent income stream.