Sequoia Economic Infrast... Share Discussion Threads

[gateside] 26/9/2022 21:47

Trading on a 14% discount to NAV

Yield now up to 7.5% at a buy price of 83p

Tempted to switch one of my other holdings into SEQI, as it looks undervalued

[cocopah] 14/9/2022 15:23

Nothing unexpected in the NAV. Looks like all the bad news from the current three loans that are technically ‘under the water’ is now baked in. I agree it looks as though they are being Conservative which bodes well for the future NAV updates. I would imagine that the board will continue to repurchase shares whilst the share prices at this level.

[spoole5] 14/9/2022 10:22

Looks like they are being conservative on recovering the value from these

[speedsgh] 14/9/2022 10:10

Further slippage in NAV from 97.21p to 96.74p as at 31/8/22...

NAV and Investment Update -

There has been significant progress over the past month in relation to the Company's non-performing loans:

• Salt Lake Potash: the process to sell the business has reached a conclusion, subject to customary condition precedents to closing. This will result in the Company exiting its positions apart from a small residual interest in a super senior guarantee facility (as noted above). The recovery on our loans in the short term will be less than we had anticipated but we expect to receive further recoveries over time through a profit-sharing mechanism agreed with the purchaser. For the time being however on the grounds of prudence we have attached no value to our profit sharing rights. The full effect of the restructuring sale has been reflected in this month's NAV.

• Whittle School: the borrower has continued the execution of its strategy for the property. The value of this loan has been written up this month following a successful court process by the borrower to obtain vacant possession of the building. Further information will be provided as matters progress.

• Bulb Energy: the administrators of Simple and Bulb continue to progress the M&A process, and we will be able to update investors once that concludes. Our mark on this loan has remained unchanged this month.

[spoole5] 08/9/2022 06:08

Buying back again. No brainer

[spoole5] 30/8/2022 11:10

In here this morning, seems as good a place as any at the moment

[cocopah] 12/8/2022 16:36

All quiet on the western front as far as the NAV update is concerned. I think we might see a little bump in the share price once the Bulb issue is sorted. Happy that they are supporting the share price through buybacks at the moment. Doesn’t look as if there’s much decent additional lending to be done at the moment.

[catch007] 30/7/2022 14:58

Only 1 bidder for BULB - Octopus Energy hopefully goes ahead and the SEQI loan is repaid.

[gateside] 29/7/2022 20:58

NAV updates are usually around the 14th of each month. So just a couple of weeks to go.They certainly seem confident that this is currently undervalued.

[cocopah] 29/7/2022 19:51

#Gateside another big director buy and a string of share buybacks … interesting to see what the next NAV update is and what’s happening to the three NPAs.👍ӿ95;😎

[gateside] 15/7/2022 07:34

With those directors buys, yield over 7% and the large discount to NAV, maybe 83p will prove to be the bottom.

[cocopah] 14/7/2022 17:45

A few sizable director buys today!

[cocopah] 14/7/2022 09:33

#Gateside yes quite a discount! Kicking myself that I re-entered a little too early but I do believe that this will turn during the year. At least I made a small profit when I sold the shares at 1.09 before the drop. I should’ve followed my charts and waited, heh-ho. As an income investor the current market is tough and I had some funds to recycle from GSK. Latest NAV update today not really much different from the May update. The dividend should be safe because the cover has increased and will probably continue to do so. Perhaps they will buy some more shares back, although the amount they bought wasn’t really significant. 🤷‍a94;️

[gateside] 14/7/2022 07:07

Now trading at 15% below NAV

[ramellous] 12/7/2022 17:42

Probably because they are trading at 10% discount of nav.

[cocopah] 12/7/2022 15:09

Why the 500,000 share buyback at 88p?

[gateside] 11/7/2022 08:01

Yes reassuring results.Yield over 7% now.Tempted at add at these prices

[cocopah] 11/7/2022 07:44

Much better results RNS explaining the detail of where we are with the NPLs and recovery process. Share price may well decline until NAV stabilises (hopefully not by much or for long). Divi held and cover increased.

[cocopah] 06/7/2022 16:06

Bought back in at 88.2p today. Difficult to see whether this is near the bottom but I think that the next monthly NAV update will steady the share price. We shall see. The charts point to a further short-term drop but I can’t see this being sustained for long. Here’s hoping!🤷R05;♂️🤞🏻

[catch007] 06/7/2022 09:28

Current estimated NAV 98.99, Discount to NAV 10.29% (12 mnth ave premum 3.29%) Yield 7.04 - source Morningstar

[cocopah] 05/7/2022 14:50

#Gateside that's the 88p the charts pointed to and now the question is will the knife keep dropping? The trend suggest somewhere between 82p and 86p! Hopefully the next NAV update will be positive and this will catch some positive sentiment. It must be trading at a 10-12% discount now.

[cocopah] 29/6/2022 13:58

I think that all of the news around Bulb is factored into the share price now. The other two bad loans are minor in comparison however IMHO I think the market is probably more concerned about other potential issues. As far as I’m aware the dividend is pretty well covered so shouldn’t be at risk.🤷‍;♂️

[gateside] 29/6/2022 07:22

Dividend yield is 6.8% now.As long as that's safe, it should add a good floor to the current share price

[williamcooper104] 28/6/2022 17:24

Yep - it's not huge on NAV - but helps validate underwriting standards They had a few admins recently which did raise questions

[catch007] 28/6/2022 16:35

If the bulb issue can be resolved by repayment that would be a major step forward for SEQI.