Prospect EP. Share Discussion Threads

[sahara] 05/3/2007 10:27

Webby - IJPN is ishares MSCI, I feel the Yen will rise against all currencies but will rise further against the US$.

S

[webby] 02/3/2007 21:06

Sahara. Why Ishares MSCI? Quoted in Dollars. Are you based in USA? Being UK based I favour Ishares Japan(IJPN) quoted in GBP. Interested in your coments.

[sahara] 02/3/2007 13:08

Hence my foray today in this particular fund, I am also awaiting an entry into ishares MSCI, and am looking to purchse JRIC during their pullback.

For those that may be interested in the German property mkt take a peek at Puma Brandenburg I bought a few months ago and am up 12% already, held pretty well too during the turbulence this week.

S.

[kenmitch] 02/3/2007 09:11

Wow! That's a big increase in NAV in a week. The shares and warrants won't stay around the current price for long if this continues. The cautious will wait to see the next figure - probably a bit lower - but maybe now is a good time to get in to this one before the next NAV increase news?

[timc] 01/3/2007 08:57

Another huger rise in NAV from 116 to 127.may have come off a bit after the market wobbles recently, but this is moving quickly in the right direction.

[asmagliocco] 25/2/2007 15:49

Hi flashheart, thanks for mentioning JRIC. Last year I searched in vain for Japanese property specialists and now there are at least 2 and I'm sorry I didn't notice their launches. Still, in both now. JRIC are still DD-ing but I hope they've already in Yen in preparation for the targeted purchases.

[webby] 23/2/2007 12:03

Does anybody know anything about the Ishares Japan ETF? We have apparently had the long awaited golden cross in the yen exchange rate which should signify a change in direction for the Yen away from @20 year lows. Strengthening of the Yen should boost PEJR as well as any Jap stocks quoted in GBP as long as they are not hedged against currency fluctuations.

[webby] 23/2/2007 11:41

Nice to see some action in the share price and people contributing to this thread. Kenmitch I think I may have read it in the initial offerring documents for this co.

[kenmitch] 23/2/2007 10:06

Webby.

No you don't get warrants too when you buy the shares unfortunately.

Warrants can be issued for free when buying the shares when they are first offered as a new issue. I haven't checked with GCL but I guess that this applied with GCL too. They are issued as a sweetener because quite often a new Investment Trust starts trading at a discount, so making it better to buy the shares in the after market. BUT the issue of FREE warrants - often on a 1 for 5 basis, occasionally 1 for 1 - when you buy the shares, is a persuasive incentive to buy them in the initial offer.

Any who got GCLW for free must be very happy now.

Thanks for the other Japan ideas. Hard though to see anything better than PEJR or PEJW if concentrating on property.

[asmagliocco] 22/2/2007 17:34

Hi timanglin, you might be interested in BGS (Baillie Gifford Shin Nippon), it does or did have some 20% of its holdings in property companies with the rest in smaller caps generally. I'm no longer a holder having found PEJR...

[flashheart] 22/2/2007 17:21

There is JRIC which hasn't been mentioned here.

[timanglin] 22/2/2007 16:20

Hi kenmitch and others,

thanks for the input - i will start investigating warrants... this is new to me.
I am trying to put these japanese property and other plays on to my radar and so far have bgfd, fjv, jfj however these are not specifically property plays. Any others out there?

[flashheart] 22/2/2007 15:41

First I've heard of it Webby but would like to know more.

[webby] 22/2/2007 15:02

Am I right in saying that you get a certain amount of warrants when you buy this share?

[timc] 22/2/2007 14:26

Kenmitch-The life of the warrant is to 1st March 2010.So we have three years left to enjoy this one-ample time.
The key here is that Japanese real estate has been depressed for well over a decade and a half now.The REIT sector is now starting to perform well in Japan as funds wake up to the opportunity-Japanese property values are still nowhere near prices currently being paid for similar assest in London or New York.
Someday the yen will start to reverse its decline to the benefit of asset managers with Japanese investments.
If we got 30% growth in 2007 (already done), 30% in 2008 and 50% in 2009, then these warrants will be trading at £1.40 after three years, as per your analysis.

[kenmitch] 22/2/2007 10:01

No. Would be very interested to learn of any.

Just to add re. Prospect warrants - these should go up over twice as fast as the shares. Risk form needs to be signed to trade them - for those not familiar with them. Once done just trade them the same as shares. Risks are very overplayed.

You can't lose more than your stake and then not until 2009, and then only if Prospect shares are under £1.10. Otherwise share price £1.20 - warrant 10p, £1.30 - warrant 20p, £1.40 - warrant 30p etc. The extra we're being asked to pay now is the premium for time value. That gets lower as the share price rises and as warrant expiry date gets nearer.

Target £2 for the share, and the warrants are going to at least 90p, compared with 35p to buy now.

Shares to double to £2.40 before warrant expiry? Possible? If so the warrant price should be at least £1.30.

Invest half what you would in the shares for the same cash upside. That would leave some for another Japanese property share. Are there any others?

[timanglin] 22/2/2007 09:18

thanks kenmitch, i also thought that the share price would settle into the nav. Could I please ask if you have any other japanese property plays on your radar?

[kenmitch] 21/2/2007 14:54

latest nav is 116p - still a hefty premium.

Reasons for the shares trading at a premium?

Asset value rising fast.

Japan property prices have been depressed for many years, so the catch up if it comes could be quite spectacular and this fund is a good way of playing it.

This could prove an excellent investment over the next couple of years - and the warrants even more so - so investors seem happy to pay a premium now rather than risk having to pay more later, even if by then the premium has gone.

Agreed though. The shares are expensive on fundamentals.

Maybe the current share price pause will continue until nav rises further?

Assuming nav keeps up the present increase rate, or accelerates, then the shares are going to remain popular.

The warrant price will increase roughly twice as fast as the share price. The warrants are a bit overpriced too.

Also the spread is wide and they are not as easy to trade. Even so I prefer them because of the even better upside.

Exercise price 110p and expiry November 2009.

If not buying now then certainly one to watch. Both shares and warrants could go up a lot.

I hold the warrants. Bought them last month, and so far they have far outperformed the shares.

[timanglin] 20/2/2007 09:33

nav is 114, so how come the premium?

[webby] 16/2/2007 09:30

Has anybody managed to put this into an isa? I don't understand the rules for this and nor it seems do the brokers.

[mangal] 14/2/2007 19:23

Webby, click the "edit" link of the header & then select/check the check-boxes located just above the edit window.

[webby] 14/2/2007 19:09

if I new how of course

[mangal] 13/2/2007 10:04

Webby, any chance of putting charts in the header? tia.

[webby] 08/2/2007 15:28

Long 10000 @118

[artful dodger] 06/2/2007 15:44

sound long-term play on the jap property market and not many other ways into this for little players like us!

long 10000 @ £1.03