Sqn Asset Finance Income Share Discussion Threads

[spectoacc] 05/2/2020 06:58

Hope so! Still no RNS on holding. I reckon SDR (assuming it's them) out of about half?

[eeza] 04/2/2020 18:40

6 mill late reported today. - in the C's.


2 mill from 0845 @ 71p.
4 mill from 1300 @ 70p.

Where is SDR finding the buyers?

[spectoacc] 04/2/2020 16:59

Agreed - are SQN technically in an offer period due to this Strategic Review? Surely 1% threshold if so. If not, we may not see a holder cross 3% (or 5%, or whatever it is here).

SDR are a strange beast.

[eeza] 04/2/2020 16:51

Don't disagree, spec.
Ordinarily the C's would be a good buy here, but I very much doubt that Schroders would dump all the Ords and keep the C's. Surely will be offloading both classes, so see the C's having further to fall to allow SDR exit.

Very interested to see a holdings RNS from the new buyer.

[spectoacc] 04/2/2020 16:38

Without talking own book too much, C's are a steal IMO (but yes, may go down more on selling).

98p NAV, covered divi, as yet no nasties, and available c.25p below NAV on a 9.7% yield.

Ords NAV is - what? Who knows, but say c.93p less 10p Suniva less perhaps all the AD (which is extremely conservative in fairness) = perhaps 53p NAV. Decent divi but uncovered. Far longer loan duration than C's if/when they do go into wind-up. FV at 50p, but no steal.

[eeza] 04/2/2020 15:28

Yes, agree with that spec, but think the C's have further to fall before they are 'real value' & a good buying op.

[spectoacc] 04/2/2020 14:55

Thanks @eeza. The 500k today at 71.14p looks like a buy then, if the others went through at 71p. Unless 2x1m and 2x500k (which is what I can see from last trading day) were each a sell and a buy.

Ords paying partly out of capital so am def taking the deduction ;)

Still a fan of the C's but agree that Schroders may be trying to slot the lot. Am convinced that's a buying opportunity, tho not a no-risk one, even with the Ords (at least) current price discounting all we currently know to be problematic (Suniva & the AD).

[eeza] 04/2/2020 13:51

2.5 mill late declared in C's from yesterday 1630.

[eeza] 04/2/2020 13:13

Only fair, spec.

[spectoacc] 04/2/2020 12:57

Can I take that off my 50p Ords buy target @eeza? ;)

[eeza] 04/2/2020 09:22

XD on Thurs so another small lurch down in share price

[cc2014] 04/2/2020 09:08

It seems to me someone is determined to get out of the ordinaries in a hurry as if they believe there is more bad news in the pipeline.

Whereas someone also wants to get out of the 'C's not because the NAV has been ripped apart but because they worry about credibility and there might be something down the road. In other words happier to take their time and get the best price they can. Liquidity is low but a turn in the share price of the ordinaries might provide some support on the 'C's

[spectoacc] 04/2/2020 07:36

I maintain SDR aren't selling the C's - but happy to be proven wrong. Is possible they want to sell, but just too thin a market for them.

[eeza] 04/2/2020 07:30

And still a shed-load of C's.

[spectoacc] 04/2/2020 06:57

Ah yes, 2m at 50.1p I see - getting very close..

Wonder who's buying. Bet SDR selling, with a lot more still to go.

[eeza] 03/2/2020 17:31

Almost 9mill traded today. Must be due a holdings RNS soon.

[eeza] 03/2/2020 12:10

2mill gone thro @ 51p in the ords.

And another few mill gone @ 50p.

[eeza] 02/2/2020 12:32

Schroders are adept at selling at the worst case price after buying expensively.
Every bit as bad as Woodford.

SQN management obviously also Woodford devotees !

[spectoacc] 02/2/2020 10:32

Which, ironically, they do at the SQN-managed SSIF - see the RNS.

I don't really understand how the C's have no AD exposure - none whatsoever - yet it got so huge in the ords.

I'm fairly certain something will come back on Suniva - just that it isn't going to be all they expect.

God only knows how long the AD will take to work through - and there simply isn't the time IMO. Again, isn't going to be zero, and maybe 13p/share even turns out to be adequate, but why take the risk? As a buyer, you want to buy at worst-case price, "cheap". Not at fair value price. Not sure why Sifel can't see that.

Or Schroders.

[eeza] 01/2/2020 18:34

Well I also think it is prudent to write off the full value of Suniva & the AD assets - until such time that the management can show what value they have.

Management's credibility is in shreds atm. I fail to see how they can be incompetent in one portfolio & not in the other. Unless they employ Mr Jekyll & Ms Hyde.

[spectoacc] 01/2/2020 16:46

Thanks @eeza, tho I started getting much less favourable prices later in the day, so might be temporarily done.

And:

"No one was more frustrated than Stifel analyst Anthony Stern, calling the hit to net asset value of 5%-14% the ‘last straw’ after a bumpy ride since the Guernsey investment company was launched six years ago, with the fund having also struggled with loans to Suniva, a US solar panel producer brought out of bankruptcy.

However, he believes the fall may be over done, saying ‘it appears that the market is almost writing off the total value of all 11 anaerobic digestion plants and Suniva, which is equivalent to 47% of the portfolio. This looks extreme to us.’"


Er, yes. That's exactly what I've done.


"...Although he noted that the de-rating of the C-shares indicated ‘wariness of what may lurk in the portfolio’."

Fair enough.

[eeza] 31/1/2020 17:25

1.25m & .75m (2m total) late reported trades, for 1200hrs on C's.

[chucko1] 31/1/2020 11:23

I also checked out the trading volumes in the Cs. On 20th and 21st combined, about 3mm traded. Yesterday alone, about 4mm. Average daily volume of 184k. Clearly someone is having a tantrum.

[eeza] 31/1/2020 10:43

Ords going up - C's going down.

[spectoacc] 31/1/2020 10:02

Thanks @chucko1, can't make sense of that. I had c.14m held in the C's, yes, but none sold. The 23rd Jan sale was in the Ords, and RNS'd as such, leaving c.49m of those. Suspect they've sold a few more since, but not crossed another 1% and hence no further RNS.

Price action (and last night's trades) suggest a seller in the C's, but I'll eat my hat if SDR can offload 14m.