Sequoia Economic Infrast... Share Discussion Threads

[hugepants] 14/11/2024 11:34

Just quite quickly.

[cwa1] 31/10/2024 11:43

I've been in and out of here a few times in the past but have decided to join you bunch of reprobates again this morning with a few at 75.5p. Hoping it won't prove to be a mistake TOO quickly...

[mpage] 31/10/2024 10:07

I attribute the recent decline thus:

1: Around half the portfolio is in US high yield.
2: There is growing concern about private credit in the US.
3: This comes at a time when credit spreads are as tight as 2007.
4: The 10yr UST yield has recently backed up quite rapidly to around 4.3% in the run up to the election.

Assuming there is no problem with the underlying credits(and we have to rely on what management tells us) then this looks like a simple market adjustment to higher reference yields plus a bit of pre-election jitters. Longer-term, we know the YTMs are likely to decline a bit. Don't think it has anything to do with the UK budget - by which I mean the SEQI moves in the run up to it. This morning gilt yields 2yr + 10yr are up by around 0.1% to 4.42% and 4.44% respectively. That isn't helping.

[cocopah] 31/10/2024 08:59

Hmm … as I feared Wednesday’s muted reaction has turned into a sour Thursday. I am consoling myself with the knowledge that SEQI is fundamentally sound and a long-term divi holding. Some of the rest of my portfolio looks even less clever. 🫣🙄

[chucko1] 28/10/2024 19:10

Yes, I thought that might have been the meaning, but there will be a reaction from the moment of announcement - or at least any announcement that has not already been signalled.

Personally, I would hope to have my thinking - and positioning - largely complete even before the budget, in the same way that expected higher levels of debt have over the past few weeks led to a widening of the yield of Gilts over comparable government securities (i.e. Bunds and USTs).

Inflationary pressures resulting from increasing the minimum wage and other public sector pay settlements may be announced formally on Wednesday, but I think they are largely discounted by now.

[zeppo] 28/10/2024 18:32

A considered reaction to Wednesday may be Thursday.

Good or bad.

Added a few Micklemersh Brick (MBH).
Housebuilding target should benefit and there is a decent divi.

It was strong today.

US election may move markets next week after dust has settled on our budget.

[chucko1] 28/10/2024 18:13

"budget on Thursday"

Are there two budgets? I know of one on Wednesday - at 12.30hrs!

[cocopah] 28/10/2024 17:09

Struggling to make any headway here at the moment. The risk-free 5yr Gilt, which is probably a reasonable comparator, has moved from around 3.72% to 4.2% since September which won’t have helped along with the ‘panic’ over the budget. I don’t think there’s a lot more that the board can do except keep on buying the shares and retiring them. Last time I looked there was about 1.06 dividend cover so I don’t think we can expect too much there in the near future. I have trawled for any information on non-performing loans but can’t find anything. Let’s how the markets react to the budget on Thursday! 🤷‍a94;️🙏🏻

[pjmurf] 28/10/2024 09:26

A rising share price, perhaps.

[zeppo] 27/10/2024 14:00

Excellent quarterly dividends, frequent share buy backs, share price below net assets value.

What more could anyone ask for???

[greybroath] 27/10/2024 12:20

(And at least, unlike some of my other lacklustre investments, I'm being paid to hold it.)

[greybroath] 27/10/2024 12:20

This is possibly my biggest disappointment - not my biggest loser, but the one that's most underperformed against my expectations.

I'm holding, as I'm holding onto a hope that this is a macro-cyclical issue and at some point - like a broken clock perhaps! - I'll be right on this one.

[panshanger1] 24/10/2024 10:56

Ex div today

[gemlotte55] 24/10/2024 10:30

Not sure if this news is new ?

Rachel Reeves handed £1.5bn ‘profit’ from Bulb rescue in pre-Budget boost
The Chancellor has been handed a £1.5bn “profit” from the rescue of Bulb after it bailed out the energy supplier.

Octopus Energy revealed it has paid £3bn to the Government following its acquisition of the failed utility company.

The Government was forced to step in when Bulb went bust in November 2021, selling it a year later to Octopus Energy.

The final payment was made on September 30, concluding the bailout without loss to taxpayers or billpayers

[gemlotte55] 17/10/2024 16:06

Ok thanks for your post Cocopah.
Would be nice if it went up a little at least on line with inflation.

[cocopah] 17/10/2024 15:53

#gemalotte55 I asked Steve Cook a while ago whether they would increase the dividend and he was focused on more share buybacks. I think Randall Sandstrom was an advocate of increasing the dividend but this has not happened since earlier this year. As we approach 200m shares in share buybacks, I would hope to see some movement on the dividend front in 2025 but I guess that for the time being they will continue to use buybacks in an attempt to narrow the share price discount. Of course, it will also depend upon interest rate movements so we will have to wait-and-see. 🤷‍a94;️

[gemlotte55] 17/10/2024 06:32

Do they review the dividend payments for the year when results are out?

[rik shaw] 17/10/2024 06:09

The Directors of the Company have declared that an interim dividend of 1.71875p per share will be payable to holders of Ordinary Shares as follows in respect of the three-month period ended 30 September 2024:
Ex-Div:24 Oct 24
Payment Date:22 Nov 24

[hugepants] 15/10/2024 10:36

NAV and portfolio update.


Looks relatively solid.

[cocopah] 04/10/2024 15:57

#gemlotte55 I noticed that and the fact that we had crossed the 50 day moving average too. By my reckoning, we haven’t got long before 200 million shares will have been bought back (and no doubt those shares which are still in treasury will also be cancelled).

I have every confidence that at some stage the discount will narrow but we are stuck in this range at the moment.

I would like to see the dividend increase a little bit more and the dividend should be amply covered at 7p to 7.5p. Ideally, I’d like to see it at 2p per quarter.🙏
27995;🤷̴5;♂️

[gemlotte55] 04/10/2024 07:04

See a Non ex director bought some yesterday.

[cocopah] 26/9/2024 15:48

I follow SIMCo on LinkedIn and yesterday they shared a post from the chairman of Zoa about the sale of Zoa (the firm behind the Bulb technology) to a Centrica owned technology business.

My understanding is that we retained an interest in this so I’m not sure whether this means we have now recouped some more money or not. See the extract below:

Andy Cox … “I’m excited to share that we have sold Zoa to ENSEK! This marks the culmination of a two-year journey in which we’ve developed an incredibly exciting and innovative technology for the new era of energy⚡️;. Along the way, we’ve navigated a long list of challenges and like anything truly meaningful in life, it required a lot of blood, sweat, and tears ;) But I reflect on this chapter as one of the most rewarding in my career, thanks to the incredible people I’ve had the privilege to work alongside at Zoa.

A huge thank you to our amazing executive leadership team—this one is going to be hard to beat: Eloise Taysom, Crystal Hirschorn, Bina Khatwani, and, of course, Tom Fraine—the best partner and co-CEO I could have wished to work with. I also want to say a huge thanks to our fellow board members our Exec Chair Andy Cox who has been a constant support and partner, Steve Cook & Sequoia Investment Management Company (SIMCo) and Jonathan Percy for your dedication and support!”

So far no comms or RNS from #SEQI but we should get an update in the next monthly fact sheet. 🤷‍a94;️🤔

[wassapper] 16/9/2024 13:14

Great update today. Very nice yield and diverse income streams

[spangle93] 10/9/2024 14:28

Cicopah - great interview, he did a great job to clearly explain what SEQI does.
Much appreciated for sharing the link

[gemlotte55] 08/9/2024 12:15

Yes thanks for sharing cocopah.
A very good insight into the setup and workings.
I hold a fair few of these in my sipp for the good dividend and quarterly payouts, may top up again soon.