Sqn Asset Finance Income Share Discussion Threads

[a0002577] 26/3/2019 10:33

Results published today see

Not bad and they seem to be delivering. Hadn't realised they had lent so much money to Green Infrastructure projects (Anaerobic Digesters, Wind Turbines etc)

[horndean eagle] 12/3/2019 10:08

They sat on my money and did nothing with most of it for over a year. They should have just handed most of it back rather than carry on with the pretence. I wouldn't be sat on such a large loss otherwise. You have to factor in opportunity cost as well. Its the continual lying that really bugs me. Ill get shot if they can generate a bounce on any suniva recovery. No one will give them more money in future.

[chucko1] 11/3/2019 22:26

But HE, surely there are more important things? I am a little surprised you would be quite so irritated by what they did.

[horndean eagle] 11/3/2019 20:04

I was referring to them not handing back much larger chunks of the cash early on. They kept as much of it as they could to invest at a later date. The number of misleading announcements they put out about deployment was horrific. 5-6 at least.

[scburbs] 10/3/2019 20:38

They refunded the fees on the capital return.

[horndean eagle] 10/3/2019 15:40

They took cash on the C shares and told investors they would be fully invested within x months. Then carried on lying about when they would be deployed. They should have handed it back rather than peddle the bs they did. They have made no efforts to support the C shares. They could have brought back stock when it was trading at a big discount. Instead they wanted to keep what they could to rack up fees. Wish I had been cuter and dumped the position on the Baron ramp.

[spectoacc] 09/3/2019 15:39

Went XD, but also went up previously on a John Baron ramp. With that out the way, they've drifted back (thanks John, for the selling opportunity).

[chucko1] 08/3/2019 18:44

HE, rather harsh! These legal things drag on longer than expected - always. I've never really understood the beef about the C shares, either! They took peoples' cash for longer than they thought - so what? No one was earning anything on it or would have done had it been returned sooner. Better that than to be rushed into sub-par deals.

For now, I think this is doing pretty well what it says on the tin - you don't get high yield asset-backed by doing deals with Shell and gliding to an earned yield of 7.2% (now 8%). It's as choppy as I would have expected.

[horndean eagle] 08/3/2019 18:22

They were supposed to have resolved Suniva but no sign of it. Complete mistrust of the scumbags. Deservedly so given what they did with the C shares.

[makinbuks] 08/3/2019 17:18

I am somewhat surprised at how low this has fallen since it was back close to NAV around October last year. There's no news flow to support this and no announced large seller. Interest rates are stable. Maybe someone expects another default?

[makinbuks] 12/11/2018 12:41

I see John Barron added to his position

[chucko1] 14/9/2018 16:40

@SpectoAcc, I have been doing precisely the same. I have sold one half of what I had a week back.

98.935p seems unnecessarily high - must have been late for the airport.

[spectoacc] 14/9/2018 16:27

Been some decent buys on it, not just John Barron-inspired muppet money (eg 118k shares at 98.93p earlier, tho that does look a bit of a muppet price).

Been selling into the strength, still hold about half.

[spectoacc] 12/9/2018 07:11

I think he p*sses in the wind to some extent, using his two IC profiles to promote his (subscription only) website, where at last glance there were at least 5 IT portfolios running. Lot of holdings in common but still - maybe 20 UK-listed ITs in each.

GPM would be a good example - he bought in, I thought "why on earth", then recently he quietly sold out again. Has to be a near constant churn in his portfolios (changes every few weeks, in & out) to keep it "moving".

(GPM is far too small - suffers from high relative charges on it's poxy few millions of assets. That was never mentioned by JB. Also no yield. I hold ;) ).

Is a fair point about him presumably looking at both SQN and SSIF, but if in say 6 months time he swapped one for the other, it wouldn't surprise me in the least. Fair point re P2P too, I'd have thought eg VPC is pretty similar.

One thing JB does have - thanks to his IC publicity, thanks to his subscription website - is a following, which presents some opportunities up & down (hence me being in GPM I guess).

[makinbuks] 11/9/2018 18:17

I think JB's entry point stated as 93p might prove well timed. Interesting that he would run the rule over SQN and SSIF and reject the apparently superior return on offer from the latter currently. I think that probably reflects his cautious approach and the relative size of the two funds and the number of loans in each. He did an IC podcast recently on alternative strategies and specifically ruled out investing in P2P as it was too early. I appreciate neither SQN or SSIF are P2P but I had thought he would have grouped them in that category (or certainly SSIF particularly from the platform stuff)

[spectoacc] 07/9/2018 16:15

And that's with a couple of mistakes that they (hopefully) won't make again. Mind you - none of these been tested in a downturn yet. I hold both.

[chucko1] 07/9/2018 15:37

@speedsgh, yes - but in the meantime 22p of dividends. So about 19% total return or about 6% per annum.

[speedsgh] 07/9/2018 15:33

Had a quick peek at SQN this pm. Not impressed at erosion of NAV over the past couple of years...

NAV 30/9/15 = 100.16p
NAV 30/9/16 = 99.57p
NAV 30/9/17 = 99.40p
NAV 31/7/18 = 97.35p

[chucko1] 07/9/2018 15:22

Yes, SQN is much more liquid than SSIF (trades 25x the volume per day on average). No comparison. However, SSIF is at an 8% discount, whereas SQN at 3%. Div yields very similar.

[spectoacc] 07/9/2018 15:09

@speeds - SSIF worth a look in comparison, possibly the better buy right now (but rather illiquid).

[speedsgh] 07/9/2018 14:21

specto - I don't really have an opinion on JB, although interesting to see how he has constructed growth/income portfolios with risk/exposure spread across various sectors/themes. Merely use his updates as a source for generating ideas for my own research. SQN has been added to the melting pot; will look at it more closely when I can find the time.

[spectoacc] 07/9/2018 13:35

He could have added buy-back too, which IMO is what boosted the price recently.

Not hugely a fan of JB in truth, but do like SQN.

[speedsgh] 07/9/2018 13:30

from IC John Baron's Investment Trust Portfolio...



...During the second half of August, both portfolios sold European Assets Trust (EAT) while the Income portfolio sold Aberdeen Smaller Companies Income (ASCI). Their replacements were BlackRock Throgmorton Trust (THRG) in the Growth portfolio, and Invesco Perpetual UK Smaller Companies (IPU) and SQN Asset Finance Income Fund (SQN) in the Income portfolio. Prices achieved were £1.21, £2.85, £5.43, £4.94 and £0.93, respectively...

...SQN’s aim is to produce regular dividends and capital growth through investment in business-essential equipment. Its 200 investments yield over 9 per cent and this covers the 7.25p dividend – representing a yield of 7.8 per cent when bought. Recent concerns about some holdings missing repayments are now receding. Speaking with Neil Roberts, the lead manager, SQN’s dividend would continue to have been covered regardless, which highlights a margin of safety. A discount to NAV, respected management and director buying all suggest support...

[makinbuks] 30/7/2018 15:27

Yes both here and SSIF they announce that they are fully committed but the time it takes for loans to draw down seems interminable. To be fair their approach to the legals is clearly pretty good judging by the way they have been able to recover monies from problem customers so perhaps they should be cut some slack