Scottish Mortgage Invest... Share Discussion Threads

[hohum1] 10/3/2023 16:14

Private market investments must be close to the 30% limit. If they can no longer ‘follow their money’ when holdings raise additional capital, SMT will get diluted, possibly severely. The 20% discount to NAV reflects that dilution risk… As you say, one for the brave

[steeplejack] 10/3/2023 08:27

SMTs discount to NAV is now approaching 20%.This is comparable to discounts being applied to comparable trusts like Polar Capital Technology currently on a discount of around 18%.Clearly the market feels that a wave of selling is on the cards just as unit trusts can be expected to suffer a wave of redemptions and the trusts defensively rejig their quotes from bid to offer.A buying opportunity..........for the brave perhaps.

[arja] 09/3/2023 09:50

just noticed the 15% discount to NAV which is unusual but warranted in this climate .

[arja] 09/3/2023 09:48

getting close to 695 chart support level but could easily go through it in this bearish market . Hopefully the US figures at 1,30pm will turn markets around !

[essentialinvestor] 03/3/2023 14:34

careful, ATT may be worth a look fwiw - if you like larger listed US tech.
Big correlation to the Nasdaq so depends on your longer term view on that index.

[lord loads of lolly] 03/3/2023 12:38

If you want higher dividends, look at value stocks/trusts. SMT is more of a growth IT (though its recent performance might make you wonder!). So it's hardly going to yield 4% any time soon. In fact, it's quite unusual for trusts in comparable sectors to pay any dividend at all. There is no "usual way" to distribute profits. They can either be returned as dividend, reinvested in new acquisitions or (for the less scrupulous CEOs out there) stuffed in a suitcase and diverted to the Cayman Islands.

[careful] 03/3/2023 10:46

SMT do distribute profits in the usual way.
Problem is there are almost no profits or dividends from underlying companies.

The dream here is that some pointing the future they will make decent profits.
"This time next year we shall be millionaires, Rodney".

[mancman1] 03/3/2023 10:16

Yes SMT have I think always said that you should not invest with them unless you always have at least a three year perspective. There are plenty of high yield investment trusts, but this has never been in that field.

[careful] 03/3/2023 09:15

looking at SMT again, but a yield of 0.6% makes it costly when I can get 4% with a risk free bond.
OK when interest rates were zero.

[mancman1] 03/3/2023 08:53

You are right. I have trusted Hargreaves Lansdown again, which gives information in an easily accessible way, but may not be that reliable a source!

hxxps://www.hl.co.uk/shares/shares-search-results/s/scottish-mortgage-it-plc-ordinary-shares-5p

[hohum1] 03/3/2023 08:28

The factsheet gives a US weighting of 54%. No sector split.

[mancman1] 02/3/2023 19:02

US comprises 32% of SMT holdings. Technology 14% according to the information I have.
Consumer cyclicals and healthcare are higher proportions. Is my information faulty?

[halfpenny] 02/3/2023 18:03

Oh Dear!! if 700 breaks then 500 will be tested.
Interest Rates higher in USA will not help Teck stocks...

Too Risky at these levels. Watching on sidelines as a Hard Landing Likely.

[arja] 26/2/2023 09:56

some citiwire comments on SMT . looks like more downside !

With six of its top eight publicly traded positions falling in the past week, it looks like the declines are coming mostly from its listed holdings, although it is equally possible that some of its unlisted investments have quietly had their valuations cut too.

This latest decline could see the proportion of Scottish Mortgage’s assets in unquoted private equity stocks hit or exceed 30%. At the end of January just over 28% was held in a long tail of unquoted growth companies that until last year had generated good returns for shareholders.

Hitting or bypassing 30% is significant because it’s the limit in unlisted companies approved by shareholders. Although the trust is allowed to let private assets increase beyond this cap, it is barred from making additional investments in these companies, which include two of its largest positions

[septblues] 24/2/2023 16:32

Moderna market cap at c$50bn is only 1/3rd of AstraZeneca and small in the overall scheme of things with the largest being > $400bn

[essentialinvestor] 24/2/2023 14:41

Anyone hold ATT?, it's on my add list if we get a further market sell off.

[steeplejack] 24/2/2023 10:30

There is a long list of 'covid' stocks that have been harshly treated since the perceived financial 'benefits' of the pandemic have diminished.Oxford Biomedica for example.Moderna looked like it was on the turn but the results have arguably knocked that on the head.SMT definitely chased the price up as Moderna sped to around $400 a couple of years back,the timing of the holding announcements confirms as much.Their initial purchases were timely but not their subsequent additions.Their timing was lousy and it must be something of an embarrassment after such heralded success purchasing the likes of Tesla.I guess they're going to have to stick with them.Bad publicity which contributes to a discount to NAV.

[lord loads of lolly] 24/2/2023 09:13

EssentialInvestor - depends which of SMT's Moderna purchases you mean. MRNA's average share price in Dec 20 (when SMT first invested) was less than today's. However, any top ups made between mid Apr 21 & mid Feb 22 are currently in the red. Especially any made mid - late 21. The Covid effect on MRNA's share price over the pandemic peak is likely to have been a one off. But that doesn't mean it has no other tricks up its sleeve.

[essentialinvestor] 23/2/2023 20:10

Jack, SMT timing on buying Moderna a tad unfortunate.

[steeplejack] 23/2/2023 19:58

Poor 4th quarter figures announced by Moderna today.Stock has fallen some 7% on Nasdaq that implies a fall in SMTs NAV of three quarters of a percentage point.The Moderna purchase (the flagship of the SMT)has,to put it bluntly,been a disaster.

[steeplejack] 17/2/2023 11:03

Today’s Moderna flu vaccine clinical results are pretty mixed and won’t aid the cause here,down 6% premarket..Initial purchases might of been canny but there’s little doubt that SMT subsequently chased the Moderna price up during the heady pandemic days.A number one holding in the portfolio (just over 10% end 2022)that hardly engenders confidence just now.However,as ever,it comes down to the NAV.The current discount is 13% odd.

[quepassa] 17/2/2023 08:09

January Fund Fact Sheet now out.