European Assets Share Discussion Threads

[marktime1231] 30/8/2023 12:19

Remember it is NAV not share price which sets the dividend. Last year we ended in a dip at around 97p. It would not take much of a rally from here to end 2023 at that mark or higher.

The surges to 120p+ and 150p+ in recent years now seem distant and show how sensitive even sound diverse stock portfolios are to macro economic factors. The income those phases produced was superb though, and the possibility that we will see those days again is a good argument for accumulating EAT while the share price is at such a historically low level.

In previous cycles I have forgotten or chosen not to top-slice and bank some gains, perhaps that was a mistake in hindsight but the rewards for holding on have been good.

[investingdad] 26/8/2023 19:03

There is plenty of time for nav to gain momentum. It had made good progress to above 94p recently. There are plenty of economic issues and geopolitics which could play their part between now and year end. The reality is that the smaller companies might still have some tough times ahead with rates hikes. I have seen lots of 'stagflation' talk beginning when it comes to Eurozone. I am just hoping that the smaller companies sector can stay resilient. I do miss the 2.2p days! A visit to 97p year high and a further Santa Rally would be helpful come December. Fingers crossed. Though, at 86p or so I am going to keep buying as this will get back to 100p and 150p again in time.

[zac0_4] 26/8/2023 14:05

Looks like we're heading for another dividend cut, in monetary terms, for 2024.

[investingdad] 10/8/2023 22:51

I listened to the AGM and the half year reports in which they seem to have outperformed the market in 1m and 6m however longer term it is different. Thr managers seem to find very niche smaller companies, like a company that fits parts in diggers or the helmet company which was referenced a lot in the past. It is smaller companies and this is not the economic conditions for that, high interest loans and tighter lending. I feel I did read they were looking to change to allow some larger company exposure. Might be wrong? NAV was making a run towards 100p last time I checked. If you want out and out growth, other trusts are better for that. The dividend is valuable for compounding in my view. Hopefully returns are better and the 6% is at least 6p.

[cwa1] 15/5/2023 17:09

A modest, but better than nothing, director share purchase...

[marktime1231] 28/4/2023 12:05

We have to be patient for the recovery here and we will be well rewarded. A double discount indeed.

What's the betting that hl delay crediting the EAT dividend to our accounts today and cling on to the cash over the long weekend. Something like this happens every time, can't be an accident. (Landed in ajb first thing this morning).

[investingdad] 05/4/2023 19:55

I haven't stopped buying, bought big at about 90 something p just before the 2020 crash, then bought at different very cheap rates. I bought some but fewer as it got towards 150p and now I am topping up regularly and lareger below 90p. For me, it yielded about 13% overall, and importantly compounds at a very good rate. I think the latest report was a bit of a worry, with little to celebrate. And there is some talk of moving away from purely smaller companies. Time will tell whether it does and proves successful, but I agree, 5 years down the line, this is worth more than 92p per share. Hopefully towards the 200p (or beyond).

[topvest] 05/4/2023 13:32

Well I've bought a few more to hold long-term. I think a number of small cap trusts are quite good value. Of course, they might go lower with a recession. Looking 5 years ahead though they will almost certainly be higher than they are now with a bigger dividend. 6.5% dividend yield is also attractive, even after the cut.

[investingdad] 05/4/2023 10:26

EAT has held up here due to Ex dividend Friday. I think NAV for dividend was 96.6p so there is some value in buying still at around 93p.

[investingdad] 29/3/2023 22:53

Thank you! I can't say I am massively surprised by the underperformance but it is a big difference between EAT and the index. It has been a tough year for EAT given lots of geopolitical issues on the doorstep. I think the final paragraph on outlook says it all, credit tightens from here. That will make it harder for many smaller companies, but also could dampen retail spending. It will be interesting to see.But under 90p this is always worth buying in my opinion. I added just below 89p recently. Build the dividend yield for when the portfolio turns around in time. It may be some years before we see 8.8p dividend however.

[lord gnome] 29/3/2023 17:25

Finals for 2022. See link in News block (above, below charts) or click here:

[investingdad] 29/3/2023 17:04

What results were they?

[investingdad] 29/3/2023 17:04

What results were they?

[petewy] 29/3/2023 10:07

results aren't thrilling.

[aleman] 08/3/2023 10:14

NAV edging up of late - to 104.15p at Monday's close.

[investingdad] 16/2/2023 22:24

24% increase since October. The appetite looks like it is returning to me. The initial shock of the war and energy prices hit this hard, but for the time being, investors look open to take on a little more risk as the hard landing 'softens'.These smaller companies are usually quick to recover. And as long as this big push from Russia fails then Europe will continue to gain sentiment. I have continued to invest. 6% dividend in current climate is worth it. I am on a historic yield of about 14% and I am currently regretting not investing more in October. Shame it didn't recover before the dividend declaration however!

[123ct] 24/1/2023 17:14

The stock holdings are all small to medium sized growth companies that fell because their p/e ratios got cut on rising interest rates, they are just cyclical and will recover when growth stocks return to being back in demand.

I wouldn't over think this about politics and energy prices, globally the whole sector of growth stocks as everyone knows sold off last year but as the managers say the business models are strong, good cash flow and little or no debt just wait and wait and wait.

EAT fell 30% last year so about the same as Nasdaq and that is all large companies so you may see that when Nasdaq recovers growth companies should then be back in favour.

Psychology always trumps fundamentals

[aleman] 24/1/2023 16:55

None of this lot even have a border with Ukraine. Only Germany and Austria border another country that borders Ukraine. (Poland and Slovakia/Hungary.) As such, I don't see how they are much affected apart from commodities prices, and they have mostly returned to pre-Ukraine prices when EAT was around 140p. EU PMIs suggest the EU economy could avoid recession with fair interest rate policy since month to month inflation has already turned negative (below target!) in November and December , suggesting most of the fall in stock prices is now psychological rather than prospective economic and business numbers. I suppose there is the danger the ECB is overdoing it if month to month CPI is going to continue negative after the further commodities weakness we've had of late, especially gas.


Trust Geographical Breakdown %
Sweden 15.6
Norway 13.9
Switzerland 12.3
Germany 11.9
Netherlands 8.1
Ireland 7.4
France 7.1
Spain 6.6
Denmark 6.5
Italy 5.7
Belgium 3.0
Austria 1.9
Total 100.0

[north sea boy] 24/1/2023 14:54

I am a long term holder here, but I don't really think that these can improve much further ( say no more than 5-10%) until there is a clear line of sight to resolution of the Russian war of attrition with Ukraine?Best wishesNSB

[aleman] 24/1/2023 14:15

I'm surprised these are not picking up more. European gas prices have fallen back greatly and today's PMI figures suggest input costs are better while selling prices and the overall PMI were looking positive




The easing of supply chain pressure helped alleviate input
cost inflation, as did the calming of energy markets,
especially in manufacturing. Measured overall, input prices
rose in January at the slowest rate since April 2021 – albeit
still running well above the survey’s pre-pandemic long-run
average. However, manufacturing input cost inflation has
now fallen below its pre-pandemic average, down to its
lowest since October 2020, and service sector input cost
inflation has slipped to a 13-month low.
Although input cost inflation slowed, average prices
charged for goods and services rose at a slightly steeper
rate than in December, with rates of inflation edging higher
in both manufacturing and services. While in both sectors
the rates of increase remained off recent peaks, the
sustained upward pressure on selling prices in part
reflected efforts to rebuild margins, notably in the face of
historically high energy and other raw material costs, as
well as growing staff costs.

[podgyted] 15/1/2023 16:53

Realize the drop in dividend was a disappointment to some - although it was well signaled on this board.
However, the European markets are perking-up and there is plenty of commentary from US suggesting bigger allocation to Europe.
Discount has gone out to 6% so looks good value at the moment.
Time will tell.

[aleman] 12/1/2023 11:33

Has Europe turned the corner? The averages are starting to look pretty good.