Princess Private Equity Share Discussion Threads

[tradermel] 24/7/2015 07:44

Like the look of that RNS today, the graph and company portfolio. Certainly worth a bit of time researching this co.

[rcturner2] 24/7/2015 07:13

Happy days.

[skyship] 16/7/2015 09:39

At 31/12/14 USA was valued at 3% of the portfolio. Assuming a fairly conventional bid premium of 33%, an NAV mark-up of 1% may be on the cards. Pretty good after May's +1.4%...

On the flipside, the Euro weakness will be downgrading the 48% of the portfolio valued in Euros.

[rcturner2] 16/7/2015 09:25

yes, I am a happy punter here, agree on your analysis

[tel5] 16/7/2015 08:50

no matter what scale its an uplift this share is a belter paying 7% dividend and a lot of earnings in dollars not euros , in my opinion well undervalued dyo

[rcturner2] 16/7/2015 07:06

Interesting statement today, although a bit of a tease, since no idea what scale the uplift will be.

[rcturner2] 24/3/2015 10:15

Another good monthly performance, still providing a good return for shareholders.

[mad foetus] 16/3/2015 10:49

RC,
PEY will be fine, but I think there are other better plays in the PE sector, on bigger discounts, not using capital for distributions and with less currency risk.

[rcturner2] 16/3/2015 09:39

mf, we have only ever talked 2 stocks, I told you long ago to sell POG and buy PIN. Come back and look at PEY in 3 years time and see where it is then.

[rcturner2] 16/3/2015 09:34

If you look at the CAPE gurus they are buying European markets at the moment (although not Greece obviously).

[envirovision] 16/3/2015 09:32

Bought 981 of these for £5253.30 inc costs and exchange in Dec 2013, had always planned to add more but the currency was against me from the start.

Just sold for £5236 inc exchange and costs.

Had around £420 back in capital.

That's a return of 7.5% in 15 months

Not my greatest investment but it is the currency that has done this.

[rcturner2] 16/3/2015 09:31

If the currency effects worry you, then you won't buy this IT. The point is that in general, currency effects are swings and roundabouts and you gain what you lose over the long term.

If you believe what you are writing, then you should be shorting euro denominated stocks and markets (since you will gain in sterling terms), but you have already acknowledged that they are boosted by the euro QE.

[mad foetus] 16/3/2015 09:16

The currency movement part sums it up. 1.9% NAV increase because half of the portfolio is not in Euros and the Euro weakened by (say) 3.8%. Which means when you convert the NAV back to your base currency, the 1.9 NAV increase becomes a 1.9% loss.

Investing in an asset denominated in a currency which is losing value is swimming against the tide. Compare PEY to HVPE or NBPE in their own currency terms and then in sterling terms and see the difference.

[rcturner2] 16/3/2015 09:09

January NAV increased by 2.6%

Princess Private Equity Holding Limited's ("Princess") net asset value ("NAV") up by 2.6% to EUR 8.81 per share

Overall portfolio developments (+1.1%) and currency movements (+1.9%) were positive for the month

[envirovision] 16/3/2015 09:03

I sold out first thing in the end

[rcturner2] 16/3/2015 08:52

mf, you state it is "insane" and then the rest of the paragraph proves the point.

[mad foetus] 16/3/2015 08:44

I think that is insane. Currency moves are in many ways much more predictable than others as they are flagged up by governments and central bankers. Japan and Europe are clear examples: both announced massive QE, both saw their currencies weaken massively and their markets rise. But if you bought an unhedged investment in either you would barely have made money, because most of the rise simply reflected currency weakness.

The Euro is still falling and the dollar still rising. Far too early to call the bottom yet, though it is hard to see the downside in holding dollar assets at the moment.

[rcturner2] 16/3/2015 08:39

p14-15 "Currencies and shares", for example "Investors should not, however, base their strategies on a view of where currencies are heading". It's mainly about academic research which shows that when currencies move for or against you it normally balances out the corresponding equity move.

[skyship] 16/3/2015 08:15

...ignore any currency factors!!!

Off to take a look - they surely can't have stated such an absurdity.

[rcturner2] 16/3/2015 07:07

Skyship, I have amended my post about the NAV growth, thanks for pointing out that error.

Ironically there was an article in last weeks IC about currency movements versus share returns, and apparently the general research is that it does not actually effect returns, i.e. you should buy markets based on the potential equity returns and ignore any currency factors.

[skyship] 15/3/2015 18:09

GP - "I know it's impossible to predict with accuracy..."

Never, ever try to predict currency movements - especially short-term!!!

Overall direction over the medium term is certainly fair game; and that was why I sold Euro-denominated PEY and bought $-denominated JPEL.

Haven't made many good calls in recent times - but that was certainly a good one.

Read JPEL's Investor Presentation below and I suggest that any PEY holder would and should still switch horses. PEY's rise over the past week should ensure that most holders will now break even in £-terms; so take the opportunity...

[danieldruff2] 15/3/2015 12:45

I've held this for ages but the weakening of the Euro has caused me to buy more in recent weeks. It has surprised me that the high yield has not caused the NAV to close up sooner than this, particularly when you bear in mind, in the current yield frenzy, that Preference shares have gone madly over par etc.

[envirovision] 15/3/2015 11:25

Possibly whats driving it. If sterling strengthens much further this could even see a premium to nav by all accounts.

[gingerplant] 15/3/2015 10:32

Nick / tiltonboy - surely on a simple long-term reversion to mean type of basis, the Euro will strengthen against Sterling from this point? I know it's impossible to predict with accuracy, but it seems to me a good reason to buy/hold PEY for some overall portfolio-cum-currency balance?

[skyship] 14/3/2015 18:52

RCT - The actual stats are; They grew the NAV from 809c to 858c, ie up 6%. But they also paid out a dividend of c7.5%. Ie, c 13.5%; though they actually state 13.2%

Problem is that in Sterling terms the NAV dropped from 674p to 665p; and is now down to 629p.

Another problem is that after the recent rise the NAV discount has slumped to a mere 12.6%, making them well over-priced versus their peers.

Right to be out of these. Perhaps consider JPEL on a 25% discount; and BPM on a 34% discount.