Shires Income Share Discussion Threads

[brwo349] 15/1/2024 14:47

Just about every commentator I read says the UK market is undervalued so this is my fund to take advantage of that supposed anomaly.

[essentialinvestor] 15/1/2024 14:45

I got 10'k worth a £2.15 and a bit.
That's my lot now. Middle East conflict blowing up now a definitely maybe.

[brwo349] 15/1/2024 14:42

I'm in again at 216.43p

[essentialinvestor] 12/1/2024 15:26

Picked up another few under £2.20.

[essentialinvestor] 02/1/2024 14:16

XD for 3.2 pence on 4 January,
with a further 3.2 pence this April to come.

[essentialinvestor] 29/12/2023 16:04

Dave, POLR is akin to a geared play on wider equity markets - at least the way I would look at it.

brwo, if you read back on previous posts, some reasons are dissused re share price performance/discount to NAV- your preference share point is also valid. That part of the market looks to be turning upwards on price.


Bought a few HHI before the close.

[davethehorse] 29/12/2023 10:11

Could try POLR, its finally breaking out now....10% divi and PE of 9....looks very under valued and a AuM update due on the 12th Jan, ripe for a re rate...;-)

[brwo349] 29/12/2023 09:16

Why has this stock performed so poorly this year - down 14%. The discount to net assets value is 10% with the yield more than 6%. It is at odds with UK ITs in general which from my research are now at worst flat for the year. Is it because of the preference shares component, but these are less than 30% of the total. I think this is an opportunity.

[essentialinvestor] 28/12/2023 15:45

UK preference shares are starting to be rerated, early days yet. I bought some LLPC before Christmas


Shires gives some nice exposure to this area of the market.

[citytilidie] 21/12/2023 16:49

Agree, but I think it will be sooner rather than later. NAV was 237p a couple of weeks ago and it’s now 252p and the share price has only risen 1 or 2p. The market will soon realise that a 12% discount is far too wide, and I think 235 bid is certainly reachable before this month is out.

[essentialinvestor] 20/12/2023 15:42

With today's UK inflation read and Shires' significant slug of UK preference shares and smaller company holdings, £2.40-£2.45 should be very achievable (with a fair wind) over the next 12 months, coupled with the 6% + dividend income on top.

IF we get a few weaker days (may not happen) intend to add further here.

[aleman] 19/12/2023 16:14

I think the aim of going for a US listing when the time was right was first mentioned 2 years and 2 months ago at DEC's Capital Markets Day. It's estate of wells has grown since then.

[essentialinvestor] 19/12/2023 14:31

DEC has been the largest owner of US wells for 2 years and only now do they have an OTC listing stateside.

To me that appears a tad unusual?.

In any case to paraphrase Mr Livermore - we can all hold opinions but the daily stock price is truth.

[aleman] 19/12/2023 14:07

DEC had $70m of assets and $43m debt as it arranged its AIM float to raise $60m at the start of 2017. It was a tiddler at the time so an AIM float would not seem unusual.

[essentialinvestor] 19/12/2023 13:18

On a very rough calculation, DEC, at the current price (time of post) is approx 1.75% of total portfolio assets, so not that significant fortunately. Their dividend will represent a higher % on the total income side, however with cash to invest they could buy a few more pref shares, if needs be.

[essentialinvestor] 19/12/2023 12:55

Spec, here is a question.. why would the largest owner (following the 2021 acquisition) of older gas and oil wells in the US, list their shares (firstly on AIM) In the UK...?.

That for me was a red flag. Others may see it differently.

Shires had a great opportunity to exit previously.

[spectoacc] 19/12/2023 12:39

Not sure why DEC has gone off a cliff, just the US listing?

[essentialinvestor] 19/12/2023 09:56

As mentioned about Diversified Energy (one of their larger holdings) last week ..I would not touch that with a..

Oh my.

[essentialinvestor] 15/12/2023 13:49

Ah, not sure about that!, UK macro may well disappoint in the new year - although listening to the November update from Iain Pyle, he considers the Trust to be fairly cautiously positioned.

I trimmed a couple of single stock positions this morning, including Serco. Will have a look back here on the FY announcement. Luck to holders.

[citytilidie] 15/12/2023 13:35

Good timing EI. 6p jump of NAV today to 249 from 243. Re-rating has to be due soon, especially as fixed income shares have risen a little again today.

[essentialinvestor] 15/12/2023 08:39

Added another few this morning, that's my lot now. Intended as a longer term holding. Hopefully it's a reasonable(ish) 2024, let's see.

[essentialinvestor] 14/12/2023 20:19

Yes, £2.186 for most.

Will e-mail about the discount, sometimes gets a scant response, but the lead Manger at BNKR today sent me a detailed reply and also offered a telephone call to discuss further, I hold a few of those tbf.


Would much prefer Diversified Energy was dumped, would not touch that with...and they also missed a great opportunity to exit.

There may be an overhang on some of those who rolled over in to Shires and have decided to now exit. Might be available lower down, as mentioned.

[citytilidie] 14/12/2023 19:23

I take it that those were your 5k’s just before the close EI. I thought it was just me that had a holding like that, which is why I was not happy with the reasons for the merger and the huge spike in the discount rate following the announcement. Infuriating when things happen out of your control. Happy to hold though, and hoping for a slight cut in interest rates sooner than later.

[essentialinvestor] 14/12/2023 17:07

I don't forsee major buy backs And ASCI a lack of liquidity issue, trust simply not big enough.

Yield at the current price is around 6.5%. Shires traded at the premium for some of Q1 - tbf before the spring/summer major gilt yield moves.

I added over 35,000 shares today, so there are plenty on offer - multiple trades, so a bit fiddly.

Might be an opportunity lower down, who knows etc


AEI trades near NAV, less than - 1.5% atm, arguably Shires 'should' be a lot closer to that % discount.