Scottish Mortgage Invest... Share Discussion Threads

[quepassa] 20/5/2024 15:36

hazl,

excellent post

[lord loads of lolly] 20/5/2024 15:25

quepassa - I think you misunderstood me. I already knew SMT published a full portfolio valuation.

But as far as I'm aware it's not monthly. And in any case I don't think previous versions are archived so you can compare holding volumes over time.

As for Nvidia, Lex doesn't "understand" the potential value there any more - or less - than anyone else. It simply has a view on it. The question isn't whether Nvidia has significant value, so much as whether they'll be able to continue growing at or above historical levels. Lex thinks they will. Others may suspect that over time, they'll attract increased competition, rendering ever more lofty valuations unsustainable.

We'll see soon enough.

[hazl] 20/5/2024 13:43

I think Nvidia ought not to be underestimated.

[quepassa] 20/5/2024 11:26

1.


????



hXXps://www.scottishmortgage.com/en/uk/individual-investors/holdings

and go to FULL PORTFOLIO VALUATION

2.

Excellent article in yesterday's FT WeekEnd LEX column (page 22) headed:

" Nvidia could be the most valuable stock in the US"


herewith a snippet:-

"Yet compare Nvidia's position with the company's own market history and its valuation does not look stretched. The stock trades at 35 times expected earnings, down from 55 times at the start of 2022. Considering the size of its potential market and the pricing power it wields, Nvidia has a shot at becoming the most valuable stock in the US".

See the Lex Column for full text and context.


Good to see that the Lex column understands the power and potential of AI .



All imo. Dyor.
QP

[lord loads of lolly] 20/5/2024 10:18

SMT's Top 10 Holdings would be far more useful if they showed the volume of shares held, rather than just the value %.

Hardly surprising Nvidia is the top dog currently, given its near 200% price rise in the past year alone - and a staggering near 2450% rise over 5 years.

How sustainable this is for NVDA remains to be seen, whatever the overall AI trajectory.

[quepassa] 17/5/2024 10:46

1.

ScoMo Monthly Update just out.

Don't miss the witty and punchy article by Burns on AI.


2.

Ditto. Monthly Fact Sheet - where AI chip designer supremo, Nvidia, ranks as Scomo's top holding at 8% - followed by ASML at 7.6%


Together Nvidia and ASML now account for c. £2.15 billion of investments in the ScoMo portfolio.


A big bet on AI - that's before you factor in all the other companies in the portfolio like Amazon which increasingly use and exploit the power of AI.


....but a good bet.



ALL IMO. DYOR.
QP

[bigwilly1986] 16/5/2024 10:58

Thanks guys

[quepassa] 16/5/2024 10:51

Willy,

Also note that shares held in Treasury are indeed treated as being taken out of issue:-

1. They do not receive dividends
2. They lose all voting rights and other corporate rights
3. They are excluded from share-based calculations and metrics such as NAV calculations.

Buy-Back Treasury shares are accretive to NAV because they reduce the numbers of shares in issue for calculation purposes.

Hope this helps.

all imo. dyor.
qp

[quepassa] 16/5/2024 10:47

Willy,

This is a copy of an RNS dated 8/12/2021 -prior to the latest bursting of the tech bubble in late 2021- which may give a steer why they are held in Treasury rather than being immediately cancelled:-


"Scottish Mortgage Inv Tst PLC

08 December 2021

Scottish Mortgage Investment Trust PLC

(SMT)

Legal Entity Identifier: 213800G37DCS3Q9IJM38

Issue of Equity

On 8 December 2021, owing to demand in the market, the Company announces the issuance of 450,000 Ordinary Shares of 5p each fully paid from Treasury. Following the issuance there will be 1,445,899,194 Ordinary Shares in issue (excluding the remaining 38,881,686 shares held in Treasury). These shares were issued for cash on 8 December 2021 at a price of 1,442.00p per share and at a premium to the prevailing net asset value.

Baillie Gifford & Co Limited

Company Secretaries

8 December 2021"

all imo. dyor
qp

[lord loads of lolly] 16/5/2024 10:19

I'm speculating, but maybe so they can reissue the shares later at a higher price, thereby crystallising a gain.

It could also be so they have the power to water down the influence of any future hostile stakebuilder by issuing more shares from Treasury?

From what I can see, there aren't any significant tax advantages. I could be wrong though.

Would be a great question to ask at their next investor webinar.

Update - the following link gives a legal view on some advantages of treasury shares:
clarkslegal.com/insights/articles/treasury-shares-an-opportunity-to-be-treasured/

[bigwilly1986] 16/5/2024 09:22

Does anyone know BG's rationale for holding the buyback shares in treasury, rather than cancelling them, please?

[quepassa] 14/5/2024 07:01

hXXps://www.sharesmagazine.co.uk/news/shares/activist-investor-elliott-halves-stake-in-scottish-mortgage-trust-as-discount-to-nav-shrinks

[lord loads of lolly] 13/5/2024 17:19

More on that abnormally large 35,000,000 share buyback last week.

It transpires the transaction has Elliott's fingerprints all over it.

They've now moved "below 5%" again, with some commentators speculating all 35,000,000 shares repurchased by the fund were from Elliott's sale:

www.proactiveinvestors.co.uk/companies/news/1047440/scottish-mortgage-activist-laughing-all-the-way-to-the-bank-1047440.html

At best, we won't know exactly how much skin in the game Elliott still has until they NEXT sell (or - less likely - buy). And even then, we may never find out (see below!).

As I understand it, shareholders are obliged to notify when their holding "reaches, exceeds or falls below 3%, 4%, 5%, 6%, 7%, 8%, 9%, 10% and each 1% threshold thereafter up to 100%".

The RNS after Friday's close relates to Elliott falling below 5%. But presumably that could mean they're already below 3%, as I believe they only have to notify once, when any threshold is triggered.

In which case, as they wouldn't have to notify again below 3%, we may never know!

Either way, I had hoped they'd be in it for longer at their full 5%+ level. Though they probably will still exert significant influence, even if they really have halved their holding as some commentators are speculating.......

[zam1] 11/5/2024 15:34

SMT invested in some USA Tech stocks that has risen nicely those stocks look risky at these levels just watching for now. Sold recently to take profit. Bought them after recently decline.

[quepassa] 10/5/2024 15:54

DroneShield Ltd.

ASX:DRO

[bigwilly1986] 08/5/2024 15:17

Wow that's a big buyback

[hazl] 01/5/2024 18:49

'Amazon won the day in beating analysts' forecasts with its results, while two other recent AI stars lagged. Shares in Amazon (AMZN) were up about 2% in premarket trading about two hours before the opening pell after the tech giant reported higher-than-forecast first-quarter results as it beat expectations on its cloud-computing unit, Amazon Web Services (AWS), and advertising revenue growth. Signs that the AI boom are powering growth in AWS cheered investors even as the tech firm didn't offer any path to paying dividends, with CEO Andy Jassy saying that over 100,000 of Amazon's selling partners have used at least one of the company's generative AI applications. In contrast, shares in Advanced Micro Devices (AMD) slumped more than 7% in premarket trading after the chipmaker’s disappointing full-year revenue outlook for its closely watched data center GPU segment overshadowed quarterly results that were roughly in line with Wall Street forecasts. Super Micro Computer (SMCI) shares were down more than 13% in premarket trading after the server and data storage provider missed analysts’ expectations for revenue in the third quarter of its fiscal year.'


Thanks to investopedia.

[stato] 26/4/2024 10:20

‘Real hope’ for cancer cure as personal mRNA vaccine for melanoma trialled
Sky News, Guardian, BBC Radio 4, BBC News, Daily Mail, (07:00, 07:30, 08:00), April 26, 2024

BBC Radio 4 bulletins lead on the world's first personalised vaccine for melanoma, developed by Moderna and MSD. The vaccine, which is in phase 3 trials at University College London, employs mRNA technology and is used in combination with Keytruda. Experts believe this could be a major breakthrough, and could be effective against lung, bladder, and kidney cancers.

[porous lover] 25/4/2024 09:33

Meta hammered in after hours trading down >15%. Microsoft also down. Hope this doesn’t indicate another bubble bursting with a retrace impact here. It’s been a good ride from 650

[quepassa] 23/4/2024 17:18

Spotify .

PLUS 16.5% today.

Recovery continues fast.

Back to circa 2.5% of ScoMo portfolio.

[zam1] 22/4/2024 07:59

Sorry wrong group

[zam1] 22/4/2024 07:58

https://news.uk.cityam.com/story/2157194/content.html