Predator Oil & Gas Share Discussion Threads

[simon gordon] 14/4/2008 19:35

Citywire - 11 Apr 2008:

Prodesse announces 2.8 million share placing

Guernsey-domiciled specialist property trust Prodesse Investment has announced a new share placing of up to 2,816,500 new ordinary shares.

The trust, run by US based Fidac Investment, takes positions in agency-backed investment grade mortgage backed securitiesand attempts to limit exposureto sub-prime credit risk.

The new placing will represent around 9.99% of the company's issued ordinary share capital and the company said the net proceeds of the placing will be used to invest in further U.S. agency mortgage backed securities in accordance with its investment policy.

Last year Prodesse managed to raise £11 million of equity in a share placing at the start of the turbulence in the US sub-prime credit markets.

The trust has been well backed by UK retail managers.

Last May, Jupiter's income veteran Anthony Nutt had a 9.4% position in the trust in his Jupiter Income Trust while F&C's Ted Scott held over 900,000 sharesor a 3.2% position in his Stewardship & Income fund.

Prodesse's net asset value per ordinary share was US$6.93 on 10 April while its shares were trading up 1.21% or 4.5p at 375p at 09:40am on Friday.

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Indie - 10/5/07:

Prodesse Investment

Our view: Buy for income

Share price: 453.25p

Investors could be forgiven for running a mile upon hearing that any company had any exposure to the US mortgage market. With interest rates high, house prices tumbling and the sub-prime lending sector looking like a tornado has hit it, it is not a pretty site.

However, before diving for cover, it is worth a second look at Prodesse. An investment trust, Prodesse's makes its money by borrowing from banks and using those funds to buy US mortgages through mortgage backed securities. Prodesse makes a profit because it can borrow at cheaper rates than the interest paid out by the securities.

What might reassure investors is that the mortgage backed securities it buys are issued by the giant US Government sponsored or quasi Government companies Freddie Mac, Fannie Mae and Ginnie Mae. There is, therefore, relatively little credit risk because these institutions guarantee the interest and principal will be paid to the holder of the security.

What Prodesse does is by no means risk free. The recent rises in interest rates in the US squeezed its margins because its borrowing costs increased but the yield on the securities it bought lagged behind because many of the mortgages had fixed rates.

But with many predicting US rates will fall, the reverse of this situation should occur. Its shares trade at a premium of about 10 per cent to the value of the securities that back them, but most of the profit the company makes is paid out in a quarterly dividend. Prodesse shares offer a prospective annual yield of 6.5 per cent that is highly attractive. Don't bet the house, but income seekers could do worse than tuck a few of these away.

[cerrito] 12/4/2008 09:07

Do not follow these very closely but how come they were able to issue shares at a premium to NAV however slight
appreciate any feed back from people who follow these.

[wiganer] 22/11/2005 16:55

As there are 100 cents to the dollar and 100 pence to the pound, then there is effectively a 100 for one de facto consolidation in a move from Dollars to Pence, adjusted for the $/£ exchange rate at say 1.7, gives a 59 for 1 consolidation, hence todays move from c7 to c 420.

[sandbank] 22/11/2005 14:13

I am going to close my eyes and dream that my SIPP pension pot was - by pure chance - totally invested in PRD and is up 4999%. Don't wake me, anyone.

[vision88] 22/11/2005 12:50

smartass moves of this nature do not impress any one

[rambutan2] 22/11/2005 12:17

yes, it's just a straight switch in quote from dollars to pence. however, theyve not hedged the port, so you are still buying into the $. carefull with this as it's a play on us interest rates/yield curve etc.

[capntubs] 22/11/2005 10:40

Well, it looks significantly more impressive than it is!!!

Wiganer - Yes there has been a currency switch but I don't think there has been a consolidation - at first glance it appears that the share price is now quoted in pence as opposed to dollars.

[wiganer] 22/11/2005 08:45

Ah, see it now, a 100 for 1 capital consolidation hidden within a $ to £ switch. Wierd.

[darkinbad] 22/11/2005 08:36

Prodesse Investment Limited ("Prodesse") announces that the currency in which
its ordinary shares are quoted on the London Stock Exchange will change from US
Dollars to pence Sterling on 22 November.