Sqn Asset Finance Income Share Discussion Threads

[horndean eagle] 27/7/2018 15:15

They had a lot of cash which they could also have returned. They didn't and promised they would be fully invested in a couple of months. All along they have lied about about timelines on investment. Larger holders should have pushed them to liquidate C. Liquidity in the shares is dire. They should buying back shares there rather than ords.

[spectoacc] 24/7/2018 06:37

@HE - they did return cash on the C's though, and something of a mea culpa. Not sure what that says about the business model in general.

[spectoacc] 23/7/2018 10:27

That RNS seems generally positive to me - they've FINALLY impaired a little of Suniva, as well as FINALLY explaining how they expect to recover (most) of their money:

"The Company has examined the minimum expected recovery under the lease or sale of the Suniva equipment and, considering the potential time required to realise the guarantee, the Company has reflected an impairment of GBP2.4m to the Suniva investment to account for the risk adjusted time value of money on such proportion of the investment should a full recovery not be achieved through a sale or re-lease. "

[makinbuks] 08/5/2018 14:01

Obviously 200k is a drop in the ocean compared to 357m shares but it shows intent. I must admit I am a puzzled by the recent price movements. Is it drifting lower again due to concerns on Suniva again?

[spectoacc] 04/5/2018 08:20

200k buyback yesterday.

[scburbs] 29/3/2018 17:04

If they are confident in the NAV and discount remains then share buybacks would be sensible use of any surplus cash. If they are too large then they can right size in a NAV accretive manner.

[spectoacc] 29/3/2018 15:23

I agree (& also says something about SSIF's intention to grow in size) but - it also shows they're not chasing the market and that they'd rather give back the money than sit on it.

[makinbuks] 29/3/2018 14:10

Not being able to complete the c share cash call is not only bad for the manager in terms of fees but raises questions on whether they will be able to churn repayments into new loans at a constant rate and thereby sustain their model.

[andyj] 25/3/2018 02:26

Great update and goes a long way to restoring trust in the management. The premium may have gone forever, but I cannot see sustained downside from here and they might finally do what we all hoped they would do, provide an excellent yield and a safe harbour. I will add this week.

[scburbs] 23/3/2018 14:50

Good update. Cash return on C shares at NAV certainly very a welcome profit in a short period. I assume a lot of investors have been asking for their money back given the slow deployment and rating of the shares.

Share buy back also interesting for ordinary shares if they don’t fully rerate and have surplus cash.

[spectoacc] 23/3/2018 13:20

Indeed, though they also acknowledged that the June deadline may slip.

Was a good update overall I thought - for a co on a fat yield and trading at a discount (without going into the lack of write-down on Suniva etc).

[horndean eagle] 23/3/2018 13:16

I think they had 18 months to deploy the cash. The fact they won't be able to in time means its perfectly sensible to hand it back. May end up being more than that given how slow they have been thus far. They are hoping for full recovery on Suniva by June it seems. Ords should bounce back if they manage it. Their reputation will be partly restored. they will end up with problems along the way but dealing with those situations and managing to get either a full recovery or thereabouts is what is important.

[spectoacc] 23/3/2018 13:04

Is it? Thought the C's were very low yielding so far? The intention to return £40m to the C's is very interesting - not nearly enough ops out there for them it seems. Not sure what that says about SSIF (@makinbuks).

@scburbs - good call on the C's the other day, as it turns out.

[hiddendepths] 23/3/2018 12:58

Great statement. I hold both for the longer term and am happy enough despite the share price falls. The income's the same.

[scburbs] 21/3/2018 15:04

C shares currently looking better value given the large discount to NAV and the absence of exposure to Suniva (and intention not to convert until clarity on Suniva issue).

[spectoacc] 21/3/2018 09:10

@joy - I think SQN (and, for that matter, HICL, ESP etc) demonstrate what happens when an IT moves from premium to discount. Yes, all have had some "issues", but the underlying businesses haven't changed all that much.

What's changed is that the market has gone from valuing them at a big premium, to a discount.

If you're in for the long haul, it matters less. Or at least - that's what I tell myself, holding all 3 :))

(And also it's been a good reminder - "Never buy at a premium").

[joy division still] 21/3/2018 09:03

Since i jumped in - expecting a long term holding to provide a nice divi - I'm down 15% (inc divi reinvestment) I mean i accept volatility in Inv Trusts and shares but this was one of my 'dependables'.

I'm sticking 'n holding - but i just couldn't have called this more wrong. Can anyone off a reason to cheer me up? Alternatively i'll go back the the Joy Division playlist (i'm used to it)

[spectoacc] 21/3/2018 07:41

Fantasy NAV is out:

"Net Asset Value
SQN Asset Finance Income Fund Limited (the "Company"), the leading diversified equipment leasing fund listed in the UK, is pleased to provide its monthly net asset value ("NAV") update.
As at 28 February 2018, the unaudited estimated NAV per ordinary share (cum-income) was 99.00 pence. This includes the 0.6042 pence per ordinary share dividend announced on 21 February 2018 that went ex-dividend on 1 March 2018 and was paid on 19 March 2018. On a pro-forma basis, the unaudited estimated NAV per ordinary share, adjusted for the payment of this dividend to holders of ordinary shares, is 98.40 pence. "

[makinbuks] 20/3/2018 22:02

No sign of the February factsheet. SSIF published on 16th. Are they waiting on something? To be fair SSIF was earlier this month than normal

[makinbuks] 20/3/2018 22:00

Something just below your brokers recommended price , Jardinero, is probably the true NAV taking a more prudent view of a couple of loans which are well documented above. Whether 85p therefore represents value depends on the quality of the rest of the book. Were last years mishaps unusual or the sign of things to come? A rising interest rate environment isn't going to help alternative income stocks in general. Its possible this was a fad which has run its course

[belgraviaboy] 16/3/2018 07:29

Read the above posts and change your broker !!

[jardinero] 15/3/2018 20:34

This stock was pointed out to me by a broker as a recommended buy at 92p, and I have been watching the fall ever since! Is it a buy or are its inherent investment risks too high? Any advice welcome.

[andyj] 12/3/2018 13:07

This is becoming an apocalyptic chart.

[spectoacc] 05/3/2018 13:19

They did say this:

"Additionally, since the Company's announcement on 23 January following the White House's announcement regarding the implementation of tariffs to support the United States solar cell manufacturing industry, a number of manufacturers have made public plans to re-start or establish operations in the United States. This was the expected market reaction and, consistent with this, Suniva has been engaged with a number of parties with regard to resuming production."


But as I say - I think they'll lost out on Suniva whatever they're saying, & some of their others not too pretty. But is it in the price now? Who knows :)