Hicl Infrastructure Share Discussion Threads

[chucko1] 31/1/2018 21:58

Carterit, despite your post being a tad O/T, I agree totally with your overall thesis. I have yet to meet the investor who can reliably time the market so that “in favour” stocks can be reliably sold near their peaks. Your experience with Aberdeen likely taught you valuable lessons.

Like you, I like to operate within a “cylinder of comfort” such that even when a stock such as HICL gets a little bruised, the prior risk management to which you hint at allows further purchase at bargain prices. This is easier to execute with an entity that chucks out fairly predictable chunks of cash. Still need to observe and manage the Corbyn risk, I suppose. But for now, that is likely a long way off.

[carterit] 30/1/2018 15:52

...though i do tend to sell off approx 10-20% each time the overall valuation has doubled,to either start off with a new fund or take advantage of maybe a dip in one of the other sectors or geographies that i invest in.Not all sectors and geographies rise at the same time,and having started off the investments,its good just to sit back and wait,and generally not bother about additional investing until we get periodic dips,and then take that as an opportunity to top up. And yes,i've seen the bad times as well such as the dot co boom and bust around 2000,and the big financial crisis in 2007/2008. The dot com boom and bust was what got me into income and growth funds,and reinvesting the dividends, having watched an isa investment in an aberdeen tech unit trust that paid no dividends,treble in a few years and then go all the way back down again in very short order. Since then,as many investment trusts manage to maintain dividends (or even increase year on year),if the underlying share price goes down,you get the bonus of extra additional shares,so providing you haven't bought a bunch of dogs, a market downturn needn't always be disastrous in the long term.

[carterit] 30/1/2018 15:22

Definately does.

[neilyb675] 30/1/2018 12:43

DRIP rules

[carterit] 30/1/2018 12:13

Sometimes i think people underestimate the attraction of income paying trusts. Some of the more heady premiums may well reduce but i think good income payers will continue to attract a premium,and never under estimate the power of compounding interest if you are able to reinvest the dividends rather than take the money. I've been able to auto reinvest the dividends for 7 years now and while the increase in share price over that period may look modest,when i see how many more shares i have,and their overall value,it looks so much more impressive. Hopefully i will be able to continue doing that for another 3 or 4 years,before i start taking the income.

[spectoacc] 30/1/2018 08:52

They all seem keen; none of them can predict the result of the next General Election mind ;)

[jonwig] 30/1/2018 08:29

Many of the recent disclosures have been buys by investment advisers. These people are closer to the action, and I'd rank them above directors in knowing what's going on at individual project level.

[spectoacc] 30/1/2018 07:22

@apollo - not knocking it as a plan, but they're at a 1% premium and seemingly a 1.59% ongoing charge, on top of what charges their holdings levy. Think I'd have bought INPP instead ;)

[apollocreed1] 29/1/2018 20:01

Rather than do my own legwork choosing the best Investment Trusts, I bought Seneca Global Growth and Income Trust today. They recently opened a position in INPP, and I'm sure they will be sifting for treasure in the Infrastructure wreckage. So I'd rather leave the choice to professionals with a good track record of choosing winning trusts.

[carterit] 29/1/2018 18:33

Hi noiseboy,some of the others i'm in are AIF,AAIF,HFEL,SOI,MYI,DIVI,(BRCI and BRWM but only went back into commodities early in 2016),EAT,FPEO,HGT,FCRE,PEY,JLEN,PGIT,BBOX, EDIN,SRE

[schofip] 29/1/2018 15:19

@spectoAcc: Take your point. If I have learnt anything in the last week it is, If a director is prepared to buy on a bad day, Join him. I did and glad.

[uapatel] 29/1/2018 14:21

More Director buys

[noiseboy] 29/1/2018 13:47

I think that's a sound strategy! One which I am building myself. What other trusts do you own?

[spectoacc] 29/1/2018 08:30

@schofip - I'm long, so don't entirely disagree, but the point remains - premium days may be over, and growth, at the very least, has to slow without the UK (or without as much of the UK).

[buoycat] 29/1/2018 08:26

My small top up showing as a sell.

[schofip] 29/1/2018 08:20

The PFI scene may have temporarily stalled however there are many other countries like the USA to do business in. What Corbyn and co say they will do out of power will be much different than when in power and faced with realities.

[spectoacc] 29/1/2018 07:17

@carterit - the problem, surely, is that irrespective of the CLLN £50m+ hit to NAV, the rapidly deteriorating environment for PFI (irrespective of Labour getting in - tho May is only one bad mistake away from Presidents Corbyn & McDonnell), is that if you buy on +20% premium and it ends up at 20% discount, you've lost a third of your capital, and need a 50% recovery just to get back to par.

(Eg NAV 100p, pay 120p, now trading at 80p).

I don't think HICL's a bad bet - but I think the game's up for the growth of profitable PFI, and the days of premiums are probably over.

[jonwig] 29/1/2018 07:14

JLIF has just affirmed that Carillion's collapse will have no material impact - only £3m of transition costs. Quite a contrast to HICL's potental £50m which is only partially explained by projects under construction.

[carterit] 27/1/2018 18:44

Have held HICL for several years now. On the plus side if you auto reinvest dividends (as i do),then a chance to get a few extra shares for a while. My aim has always been to look for shares (investment trusts),that pay around 4% or more,with the potential for growth,and which have a reasonable record of maintaining or growing the dividend,and which handled the great financial crisis of 2008 in reasonable shape,while spreading the risk across globally and in various different sectors,and with the aim of producing a 5 figure total yearly dividend (when i finally decide to take the income,split roughly equally each month of the year),so that i get a decent income without having to sell any underlying shares. This is one of the approx 20+ trusts that i have,and it certainly meets my criteria.

[spectoacc] 26/1/2018 16:38

"Never buy at a premium" - HICL, ESP, SQN.. Still a few crazy premiums out there too. And a few things driven higher by the search for yield that look distinctly pricey to me.

Mind you - I hold both HICL & ESP.

[andyj] 26/1/2018 16:02

What a nightmarish 12 months it's been for income seekers. First the demise of an income stalwart in Carillion, then the sustained capital losses in income favourites like GSK, IMB, BT, MKS, NG and CNA. Alternative income hasn't escaped the rout, SQN and ESP to name just two that have seen falls that mock their right to be seen as a source of income. And now infrastructure...I'm tempted by the discount, but the days of trading at a premium have gone, perhaps for years, by which time the spectre of a Socialist hell will be looming over the UK. The dividend is attractive, but I want a bigger discount to compensate for the prospect of static, or diminishing capital. They have sown distrust and that never earns a premium in the stock market.

[chucko1] 26/1/2018 16:00

I will read the presentation. But just out, two directors just bought 96,752 shares between them at just below 140p.

[spectoacc] 26/1/2018 15:55

Yes couple of decent sizes too.