Great Portland Estates Share Discussion Threads

[nil pd] 06/12/2007 09:10

We are making good profit on the FTSE Call Option I see. More of it was sold on 4 December at a good profit and the further buy-back of shares the following day (at 480p) firmly underscores the management view - again - that we are trading at too much of a discount.

I expect to see us above 500p per share within weeks.

[nil pd] 29/11/2007 16:07

Hi Goldth,

Sorry, I've not looked in for a few days. My reason for posting the graph was that it shows a trend for developing a wedge or a pennant which ultimately could lead to significant 'break out'. Trouble is the break out could be either way! But in this case I think to the upside is very clear. On balance and certainly judging by where we are today versus two weeks ago, when I posted the chart, I would say this trend is unfolding very well, the share price is trading within the range of the wedge and I am expecting 500p + within short time.

Since then the Wagamama sale has been put on hold though. I don't know, but had GPE planned to retain their stake anyway?

I hope we are relatively resistant to the so-called "credit crunch".

[18bt] 16/11/2007 10:03

My concern about private equity at the moment is that they are trying to drive the price down even for smaller deals (0.5% increase in the interest on the loans makes quite a difference), but the sellers haven't adjusted their expectations. In addition, exits have become more difficult. I still hold for the medium term, but don't expect too much deal action until the spring.

[goldthorpe] 16/11/2007 08:34

Nil Pd, what does the chart say?

Article on R4 Today programme business news this am about Private Equity financing. Interviewee (can't recall who - I was half asleep) reckoned that smaller sized PE deals should be fairly easy to finance. Not so the larger one. GPE share price doesn't seem to have been affected by credit crunch.

[nil pd] 27/9/2007 18:38

What a first class RNS yesterday! And backed up by money where mouth is today.

Effectively the company has said "the market significantly undervalues the company's shares, we don't like it and we will do something about it".

NAV now estimated at 498p



RNS Number:5585E
Graphite Enterprise Trust PLC
26 September 2007


ANNOUNCEMENT TO STOCK EXCHANGE


GRAPHITE ENTERPRISE TRUST PLC


26 SEPTEMBER 2007


The Board of Graphite Enterprise Trust PLC notes that market estimates of the
Company's current net asset value per share are below the Company's own
estimates.

The Board therefore announces that the net asset value per share as at 31 August
2007, the most recent date for which accounts have been prepared, was 491.5p.

The Board further announces that Graphite Enterprise has today sold its
investment in Golden Tulip, a developer and manager of three and four star
hotels, for cash proceeds of #8.8 million. The effect of this sale, taken in
isolation, is to increase the Company's net asset value per share by a further
6.5p.






This information is provided by RNS
The company news service from the London Stock Exchange
END

NAVILFLRASIRFID

[nil pd] 21/9/2007 16:38

O/T again

Me too! Monty thinks "aloud", great stuff. It's funny, you can find him on your side in one stock, such as BP, and an enemy on another thread. In the mega caps I hold BP and LLOY (added to the latter today). My speculatives are IFL, MTA and PANR. I have others on watch.

[goldthorpe] 21/9/2007 15:19

Perhaps a flutter on tiddler oils, that's all.

GPE still my biggest holding, followed by RBS (bought too early there!), then BP. I'm an avid lurker of Monty, Idioterna et al on the main BP discussion board.

[nil pd] 21/9/2007 12:37

Funnily enough, yes, I did go to the Fool's Nook, when I heard it was taken over by the ex-Hanging Gate people! My wife and I had a very nice lunch there earlier in the summer but have not been back since - not for any other reason than being preoccupied with countless personal plans and keeping to our neck of the woods, which is further south but still in Cheshire.

Sounds like a wise move to re-balance your portfolio and I am reassured that you keep a holding here.

Are you seriously considering the oilers I mentioned?

[goldthorpe] 20/9/2007 20:47

Mil Pd, I must admit to selling half my entire GPE holding since end March (av selling price 447p) because my portfolio was too skewed towards GPE and was lacking yielders. I've still got a big holding in GPE though.
Thanks for the oil/gas info.
(OT again - do you go to the 'Fools Nook' now?)

[nil pd] 20/9/2007 13:30

Goldth:

PANR and MTA. Both mainly gas but there's some oil too. Both, IMO, probably the best opportunnities at the small/micro cap end. I hold both.

GPE: I have sold all mine but we keep a significant holding in my wife's ISA. Looks very good for a longer term hold!

[goldthorpe] 20/9/2007 13:05

Nil Pd,

Nice to see an increase in the % of total assets invested in P.E.
6% NAV increase in the 6 months is OK by me.
I thought GPE's share price would suffer as a result of the credit crunch, but it's held up rather well. The Outlook statement gives me confidence in their approach. Perhaps they can pick up assets at more reasonable prices if the borrowing facilities are not there that previously helped to stoke up prices.

p.s. Nil Pd (apologies for being off-topic the rest of you) what smaller-scale oil companies do you fancy for the longer term. I have BUR (as well as BP. and RDSB).

[nil pd] 19/9/2007 17:05

Goldthorpe
Do you have any comments on the interims?

[goldthorpe] 17/8/2007 09:26

Nil Pd: Just 25% sold-

"4 JUNE 2007

PART-DISPOSAL OF FTSE OPTION

Graphite Enterprise Trust PLC (the "Company") announces that it has today sold
25% of the FTSE 100 call option ("the Option") which was acquired in October
2005. This part-disposal followed a fall in cash and near-cash balances and an
increase in the exposure to the FTSE 100 Index ("the Index") provided by the
Option.

The proceeds of the disposal were #9.7 million, representing 69% of the cost of
the Option of #14.0 million. The value of the Option immediately after the
disposal was #29.0 million and it provided continued exposure to the Index of
approximately #115 million.................."

[dr square] 17/8/2007 07:12

goldthorpe / Nil Pd

Thank you for your answers much appreciated the cash would account for a lot in todays conditions as far as performance IMHO. What they do with it I can only hope is prudent they seem to have played the option well with the recent 25% sell.

I do like the look of how this is set up to take advantage over the coming years, and seems to be in favour with the narrowing NAV/SP.

Again thanks

Regards

[nil pd] 17/8/2007 06:39

gold:

I thought GPE sold a major proportion of the FTSE call option? Well before this recent "correction", fortunately.

[goldthorpe] 16/8/2007 11:50

Dr. S,

GPE hasn't fallen any further than the overall market in recent weeks. It's certainly performed less worse than the banks. Given that GPE was somewhat 'overbought' in the last few months, with the share price almost reaching last published NAV, that's not bad. GPE uses borrowings to re-finance, but I think that they are more prudent than some of the bigger private equity groups and of course the so-called "hedge" funds.

GPE has been spinning off some major investments over the last few years: Maplin (very profitable return), Wagamama, Jane Norman, Upol to name a few. At the time of the 2006 annual report the biggest individual companies it holds are:
* Cinque Ports (caravan parks, 5.2% of investment portfolio, invested 2006)
* Micheldever (tyre distributor, 4%, 2006)
* Huntress (recruitment, 3.9%, 2000)
* Go Plant (road-sweepers, 3.8%, 1995)
* OPD (recruitment, 3.1%, 1991)
* Wagamama (restaurants, 3.3%, 1996)
* Standard Brands (firelighters, 3.3%, 2001)

So some investments are very recent and unlikely to be sold soon, some are very old, and have been either been floated or sold off with GPE retaining a stake (e.g. Wagamama).

I think the real unknown, and one which the well-respected contributor to this thread "thedaidai" has expressed concern, is the future commitment primarily into funds rather than individual companies (see news thread 03/05/2007 10:30 UKREG Proposals: future development). I think this would allow GPE to punch above its weight by having access to larger deals. Presumably these are likely to involve the larger element of borrowing we see are having difficulties at the moment.

Having said that, GPE recently had a large amount of cash, nearly 40% of net assets; though set against this is the geared FTSE call option it holds. If still there, this large cash element may be a way to pick up assets on the cheap during the turmoil of the current credit crunch.

I've rambled and sorry I haven't really provided a satisfactory answer to your questions. For my part, I've been an investor since 2001 and built a large holding - perhaps too large a proportion of my overall investments. I'm staying with them; though in recent months I've taken advantage of the high share price to sell about one third of my holding and diversify into higher yielding "megacap" shares.

[dr square] 11/8/2007 09:13

Hi all

Well bought these for my son with the Goverments kind handout plus a bit from me, didn`t even know it had a BB. So thanks all for your information and posts.

couple of questions if anyone can answer?

1: Why are we going up in a market that is bombing? Considering the nature of the funds investments this should be falling should it not?

2: While I know little about management buy outs etc. Venture capital trusts work on a basis of 5 year return of assets? In believe. do we think that GPE are due to spin of any of its investments in the near term to free even more cash?

In advance thank you for your answers

regards

[nil pd] 29/6/2007 09:17

Hi Goldy. Then if you're not fussed by the press I'll stick with it a while. But I'm keeping a close watch. Maybe the massive re-purchase was to protect the balance sheet in pre-emption of loss of tax relief in the future.

[goldthorpe] 28/6/2007 08:13

Amazing: more than 4% of the shares in issue removed from the market in one day. BP manages that in about 10 months. I wonder how the NAV stands at the moment?

I'm not too bothered about the poor press, though any removal of tax relief on interest may hit the bottom line.

[nil pd] 27/6/2007 12:51

Actually it was 3.83 million. Way above "normal" repurchase amounts the company has made.

Any views on how the current poor press that Private Equity is receiving may impact GPE?

[nil pd] 27/6/2007 12:48

3.3 million shares repurchased. Haven't checked the history, but from recollection that's a lot more than usual. May partly explain yesterday's volume.

[goldthorpe] 26/6/2007 20:45

Apparent sell volume today of 9.2M: about 11% of the shares in issue! Largest Volume in last 5 years.
I don't think this is quite the picture, since bid and offer prices on close same as on open.
I wonder what is going on?
Any ideas?