Polar Capital Technology Share Discussion Threads

[philo124] 15/4/2016 06:49

Still does.

[philo124] 25/11/2015 14:19

Day follows night.

[philo124] 28/7/2015 17:08

Bought back the 3rd.

[philo124] 06/1/2015 22:29

Nice Holdings detail RNS.

[philo124] 05/12/2014 08:19

Sold a third; a read through the statement today says why.

[philo124] 30/10/2014 21:55

Onwards and Upwards.

[philo124] 12/9/2014 16:48

Topped up this a.m.

[philo124] 12/9/2014 05:28

Now 540p NAV.

[philo124] 30/8/2014 19:21

Now 519p; pretty good progress.

[praipus] 20/3/2014 12:10

PCT NAV teasing again through £5

[praipus] 14/3/2014 08:21

Anyone short PCT and long PCTS?

[dlm2602] 10/3/2014 14:49

Hi JSWJSW,

I don't think the price anomaly is the fault of MM's tbh because what is the reason for them to do this. I suspect there is just not a liquid 2 way price at the moment and coming to expiry most holders of PCTS will be looking to sell. Perhaps PCT is at a discount because of this uncertainty and future investors don't want to drive the price higher to benefit PCTS holders. I suspect there could be a lot of activity this week but ultimately we are a hostage to the performance of PCT and the markets in general. Good luck!!

[jswjsw] 10/3/2014 13:08

dim2602 -

Yes, I agree with all you say, but if you hold PCTS, then the raising of the discount to NAV, of PCT, allows the MMs to prevent profit for short-term holders of PCTS. e.g. keep PCT at 485, even when the NAV is up at 500, and PCTS won't rise above 7p.

They fear that an 'honest' system where adjustments do reflect value in the short term will allow frequent and quick small profits on PCTS. But the volatility of the NAV is not that great, so in practice there would not be huge swings. Anyway, that is meant to be the deal - and is why we trade PCTS at all.

I have complained today to the FCA re what appears to be manipulation, despite the levels of risk. Again, the poor PI is deliberately stung.

[praipus] 07/3/2014 15:34

lenses and dlm2602 interesting, knwoledgeable posts thank you.

[jswjsw] 04/3/2014 13:00

Just bought more PCTS this am.

29% risk-premium is absolutely enormous (ridiculous IMHO)!

[dlm2602] 03/3/2014 08:04

Hi JSWJSW,

I agree with your thoughts that the selling price of PCT could be driven down with the discount to NAV widening. However, there should be potential buyers of PCT who will see this as anomalous and want to take advantage to buy PCT cheaply. This should limit the size of the discount. Similarly up to 14 March if the cost of buying PCT is materially cheaper through the PCTS then this should also limit the discount of PCTS. That's the theory but as we know reality could be very different. It does mean that if the market is "manipulated" to adversely affect the value of PCTS then it probably means that the price of PCT is kept artificially low and thus could be a good time to buy if you like the trust. As always DYOR etc

[jswjsw] 02/3/2014 22:43

Hi dim2602,

"The concern I see is that PCT may be artificially driven down close to 478p so that PCTS has no value."

This is exactly my point, and I feel that if there is market manipulation, the FSA ought to be dealing with it.

Of course, there are reasons the discount to NAV may widen, and it may be that we shall see this narrow now that the 28 Feb exercise date has gone. But if both the discount of the Ord. to NAV goes significantly higher, and the S share discount to the Ord. also rises before the end of March, we shall have what will start to look like a very serious fixing scam.
J

[lenses] 02/3/2014 17:31

From the PCT circular:

"Polar Capital Technology Trust plc

13 February 2014
To the holders of Subscription Shares in the Company (the "Subscription Shareholders")
OPPORTUNITIES TO EXERCISE YOUR SUBSCRIPTION RIGHTS
31 MARCH 2014 IS THE FINAL SUBSCRIPTION DATE AFTER WHICH THERE WILL BE
NO FURTHER OPPORTUNITY FOR YOU TO EXERCISE YOUR SUBSCRIPTION RIGHTS....

Option 3: Take no action
Holders of Subscription Shares could alternatively take no action, in which case the Subscription Rights will lapse.
The Company will (as described below in "Appointment of a Trustee"), within seven days following the Final
Subscription Date (by 7 April 2014), appoint the Final Subscription Trustee to exercise as many as possible of the
outstanding Subscription Rights and sell in the market the Ordinary Shares resulting from such exercise and the
Final Subscription Trustee will then distribute pro rata the proceeds of any such sale less any costs in accordance
with the Company's articles of association....

Appointment of a Trustee
The Company shall appoint the Final Subscription Trustee who, provided that in such trustee's opinion the net
proceeds of sale after deduction of all costs and expenses incurred by such trustee will exceed the costs of exercising
the Subscription Rights, shall within the period of 14 days following the Final Subscription Date (by 14 April 2014),
exercise Subscription Rights which shall not have been exercised on the terms on which the same could have been
exercised on the Final Subscription Date and sell in the market the Ordinary Shares resulting from such exercise.
The Final Subscription Trustee shall distribute pro rata the proceeds of any such sale less the costs of exercising the
Subscription Rights and any costs and expenses to the persons entitled thereto at the risk of such persons within 56
days of the Final Subscription Date, provided that entitlements of under £5.00 shall be retained for the benefit of the
Company. Holders of Subscription Shares should appreciate that the proceeds of sale may be less than the aggregate
market price of such Shares."


====================================
I would anticipate that the subs will have to be at least above ~15p for it to be worth while for the trustee to process any lapsed subs and hand money back, but this would depend on how many were lapsed - choosing to lapse is a gamble, IMO.

It is noteworthy that PCT's discount to NAV has recently opened up to around 2 1/2% when it was near zero.

I would think trading in PCTS will essentially cease by around Mar 24. This will be to the wire!

GLA.

L.

[dlm2602] 02/3/2014 17:29

I have bought a shed load of PCTS also and some are in my SIPP. Although you have to exercise your PCTS on or before 14 March if you want to buy PCT at 478p you can still choose to do nothing and hang on until the end of March. If you do this then the following will happen (extracted from Q&A from Polar Capital Trust website):

If, after receiving your Subscription Shares you do nothing, the Subscription 
share rights will lapse after March 2014. Within seven days following this FinalSubscription Date (i.e. the last Business Day of March 2014) the Company will 
appoint a trustee who (provided that  in  its  opinion  the  net  proceeds  of sale  will  exceed  the  costs  of  exercising  the 
Subscription Rights), will either: 

(i) exercise  all the  Subscription  Rights  which  have  not  been  exercised  (on the terms prevailing on the Final Subscription Date) and sell the resulting Ordinary Shares in the market; or 
(ii) (if it appears to the trustee that doing so is likely to realise greater 
net proceeds for  Subscription  Shareholders)  accept  any  offer  available  to  Subscription Shareholders for the purchase of the outstanding Subscription 
Shares. 
 
The  trustee  will  then  distribute  the  net  proceeds  pro  rata  to  the  Subscription 
Shareholders, provided that entitlements of under £5.00 will be retained for thebenefit of the Company.  
 
If the trustee shall not exercise the Subscription Rights within 14 days 
following the Final Subscription Date all Subscription Rights shall lapse. 
 
 
So my take on this is that you will still be able to buy and sell PCTS until the end of March. If at the end of March the price of PCT is greater than 478p after allowing all costs the trustees will pay the difference to the holders of PCTS. The concern I see is that PCT may be artificially driven down close to 478p so that PCTS has no value. However this may be difficult if PCT NAV continues to rise. As always DYOR and my comments are mine only and should not be taken as any recommendation to buy/sell or hold.

[jswjsw] 01/3/2014 20:43

melody -
Well, that's provided you have £47,800 floating about!

PCT discount to NAV has been looking stretched in the past few days (496p), despite cable's uptrend.
I suppose there has been uncertainty re the number of PCTS that were going to be converted yesterday, but if the NAV rises and PCT sticks where it is I will become more than vaguely suspicious re manipulation precisely because of the scenario you describe.

I shall be watching closely.
Now, I would never dream of contacting the FSA, would I? ...

J ;-)

[philo124] 01/3/2014 14:42

Hold here and RTT, which has done really well and DIS fwiw.

[melody9999] 28/2/2014 20:44

Yeah its a shame Praipus ...the PCT price has got stuck around 480p ..... it only needed to move on to 500p or so and we would have made a nice sum out of PCTS.

I've been trading in out of PCTS a little - actually bought in again today at 5.9p as PCT moved up to 487p. (a 9p difference).

JSW - yes you are right - I was obviously short of time with my post 164. If you own 10,000 PCTS on 31 March, you have to exercise your subscription right to buy PCT. But (as I see it)you then have to stump up 10,000 X £4.78 ie £47,800. Then you can sell them in the market at 487p X 10,000 = £48,700. £900 profit less whatever you paid for PCTS less dealing costs.