Polar Capital Technology Share Discussion Threads

[philo124] 02/2/2012 13:54

Bought some more yesterday. What are the terms for the warrants-PCTS?

[melody9999] 29/1/2012 22:16

Still holding and things looking more promising here.

[lenses] 07/7/2011 12:53

Melody; 4 weeks for a reply!! You have probably given up.

Yes your understanding is spot on.

The sub price (PCTS) - Today: buy @ 19.9, sell @ 17.6 is at a premium to the underlying.

At first exsise on 3/12, 401 + 20 - 371(offer on PCT today) = 50p or a 13.5% premium.

If one just wanted to have the underlying shares they would buy those, it would make no sense to do otherwise.

However people are willing to pay 20p today for the subs, even though they would be paying 13.5% extra if they were just after the underlying shares, because:-

1, they would get geared exposure to price movments of PCT of 18.5 : 1 (ie all things being equel a 10% (37p) rise in PCT would generate a 185% rise in PCTS (also 37p). They could then sell for big profits if they wish - people will pay alot for that chance.

and:-

2: if a buyer wants PCT shares today they can get exposure for 1/18.5 of the cost and pay the rest next march.

It works both ways of course, if, say PCT rise by 8% or less by 3/12 the subs will expire worthless.

For what it is worth I think PTCS is good value now for a high risk punt on a general market revival and tech companies at the forfront.

But very much a punt.

As ever please do your own reserch and no advice intended.

L.

These 2 threads are informative:-

[melody9999] 10/6/2011 12:00

I've got a few PCTS subscription shares. can someone confirm my understanding pls.

It seems to me that these shares give me the option to buy the ordinary PCT shares at 401p in March 12 (or 478p in March 14.) Obviously if PCT is below 401p in March 12, there is no point in doing this. So the value of these subscription shares is a reflection on the likely price of PCT in the future. At 20p today, I could sell them now which would make sense if I believed PCT would be below 421p in mar 12 , or below 498p by Mar 14.

Is that right?

[campomar2] 14/2/2011 08:34

Tried to buy some sub shares this morning, quote way overpriced at 27p! If I was offered 27p to sell this morning I would grab with both hands!

[jimcar] 13/2/2011 22:50

Agree with lenses about the register date and the effect of a sale.

Subscription shares usually trade at a premium to the existing share price so I would expect them to open at about 10 p. I don't think they will affect the ordinary share price too much - NASDAQ, premium/discount to NAV will be much more important. Rogoff seems to be calling things correctly so I hope the premium will remain

[lenses] 13/2/2011 16:58

Entitlement to bonus shares goes to those on the regiser - ie direct or nomonee
owners - on 10/2/11. Bonus subsciption shares (subs - they behave like warrants) will be inderpendantly traded as of 14/2/11, selling the underlieing shares after 10/2 will not affect the rights attached to the subs.

IMO I would buy the subs after giving them a few weeks to settle.

[salmac] 11/2/2011 22:21

All clear now. Many thanks Jimcar.

[jimcar] 11/2/2011 18:16

I take it to mean you will get 1 new subscription share for every 5 existing shares you hold (200 subscription shares if you hold 1000 ordinary PCT shares).

Within the next year you will be able to convert the subs to ordinary shares by paying 381p + 5% i.e approx 400p. Whether you would want to would depend on the price of the ordinaries (obviously it would not be worth it at an ordinary price of 390 say) and the price the market puts on the subscription shares (eg. if the subs were 15p and the ords were 402 rather than convert the subs at 400p, it would be better to sell them for 15p buys some ords in the market for 402).

After year 1 to convert you will have to pay 381 + 25%

[salmac] 11/2/2011 17:44

I have had a letter from Selftrade about the PCT bonus issue but I can't get my head round it. Can anyone explain in words of one syllable what the bonus issue is all about. Is it something which will happen automatically or do you have to opt in or out?

Apologies for being a bit thick!

[jimcar] 23/1/2011 18:46

When people buy the bonus shares (they will have a conversion price NAV + x%)it will increase the size of the fund and presumably the managements fees as these are usually related to size of funds under management (often 1 or 2%)

[melody9999] 23/1/2011 18:05

Does anyone have a view as to the bonus share issue? What is the rationale behind the company doing this?

[amt] 16/12/2010 13:09

Take a look at HRI, big discount to NAV. DYOR NO ADVICE

[praipus] 16/12/2010 12:38

Anyone watching these or who likes VCT type investment should probably look at PEQ too.

[mangal] 27/4/2010 12:35

RTTS are the subscription shares of RTT. If you buy RTTS now at 55p, you will be able to convert them into RTT on 28Dec2012(exercise date) at a price of 267p. So were RTT to rise by 8%pa till exercise date, you get a return of almost 20%pa on RTTS.

Yes, PCT has performed better than RTT, but if Tech shares continue to rise at say more than 5%pa, PCT would have to perform almost twice as well as RTT( very unlikely, I think ), to beat the return on RTTS.

[chester] 27/4/2010 12:23

Mangal -What is the difference between RTTS and RTT ?

Also, I'm surprised what you say about the gearing because PCT has performed better since the beginning of the year.

[mangal] 26/4/2010 20:48

If you like the tech sector then you may like to consider subscription shares of RCM Technology Trust, which has similar remit to Polar Capital but would give you a gearing of over 5 times.

[chester] 26/4/2010 20:25

Yep agree with you. I've got some of these tucked away.

[restassured] 26/4/2010 19:19

This has been a stellar performer.
Has exposure to US tech stocks which offer far better value than their UK counterparts.

[restassured] 05/3/2010 07:06

RNS Number : 1297I
Polar Capital Technology Trust PLC
04 March 2010

?
POLAR CAPITAL TECHNOLOGY TRUST PLC
POLAR CAPITAL LLP
04th March 2010

POLAR CAPITAL TECHNOLOGY TRUST PLC
As at close of business on 03rd March 2010 the unaudited net asset value per
share, calculated in accordance with the AIC formula (including current year
deficit and based on bid market values) was 299.32p

[restassured] 02/3/2010 10:58

Trading at nearly 10% discount to NAV.

Ben Rogoff leads the managers and they are relatively clued up.Ex Henderson tech.

Has good exposure to large US tech stocks,which offer far greater values than anything U.K side,where people are paying p/e's of over 50 for some tech stocks!!!

In the USA the likes of IBM Apple are nearer a p/e of 10!

The sector should outperform this year.

The shares have entered an uptrend.


Also not a bad hedge against a collapse in sterling.


Top 10 Longs | % | | Sector Breakdown | % |
+---------------------------+------------+------------+------------------------+----------+
| Apple | 6.4% | | Semiconductors | 23.0% |
+---------------------------+------------+------------+------------------------+----------+
| Microsoft | 5.2% | | Comms Equipment | 20.1% |
| | | | | |
+---------------------------+------------+------------+------------------------+----------+
| Google | 4.9% | | Computing | 19.4% |
| | | | | |
+---------------------------+------------+------------+------------------------+----------+
| International Business | 3.7% | | Software | 18.3% |
| Machines | | | | |
+---------------------------+------------+------------+------------------------+----------+
| Cisco Systems | 3.6% | | Internet / Consumer | 10.6% |
| | | | | |
+---------------------------+------------+------------+------------------------+----------+
| Hewlett-Packard | 3.0% | | Services | 3.7% |
+---------------------------+------------+------------+------------------------+----------+
| Oracle | 2.8% | | Healthcare | 1.4% |
+---------------------------+------------+------------+------------------------+----------+
| Intel | 2.6% | | Telecoms / Media | 1.2% |
+---------------------------+------------+------------+------------------------+----------+
| Samsung Electronics | 2.4% | | Electronic Components | 1.1% |
| | | | | |
+---------------------------+------------+------------+------------------------+----------+
| Qualcomm | 2.2% | | Other Sectors | 1.0% |
+---------------------------+------------+------------+------------------------+----------+
| Total | 36.7% | | Clean Energy | 0.1% |
+---------------------------+------------+------------+------------------------+----------+
| | | | Defence / Security | 0.1% |
| | | | | |
+---------------------------+------------+------------+------------------------+----------+
| | | | Total | 100.0% |
+---------------------------+------------+------------+------------------------+----------+
| | | | | |
+---------------------------+------------+------------+------------------------+----------+