Starvest Share Discussion Threads

[zedder] 26/10/2020 19:27

It's been a tax efficient vehicle to store my wealth as well. Even though it continually lags the value of the portfolio, it is still up 682% since 1st January 2020!

[ptch] 26/10/2020 18:50

I'm also a frustrated holder of SVE hoping to see the share price rise more than it has done based on the success of GGP. However, I am not convinced that this will happen any time soon. We must appreciate that SVE is essentially a financial company that provides working capital to small resource companies (minor miners!) hoping that they strike lucky. Callum Baxter is the chairman and CEO of this £10M market cap company and he owns just over 13% of the shares. Callum is also the CEO of GGP (£884M market cap) where he owns 2.6% of the shares (worth over £23M) directly. SVE has a 2.1% investment in GGP. Mr Market will never fully price SVE's holding in GGP (and other company holdings) as SVE has running costs, management fees etc. The last half-year report for SVE clearly acknowledges that performance of GGP is the major contributor to SVE's success, i.e. it helped grow the NAV, the market cap and earnings/share. The other holdings barely register, so what would SVE be worth without GGP - would it even be a viable company? Why would Callum (acting in his SVE capacity) want to sell out of GGP? It's a tiddly amount in the grand scheme of things. The only reason will be when he has a new and better prospect to invest in. SVE is basically just a tax efficient vehicle for Mr Baxter to store his wealth.

[zedder] 26/10/2020 09:33

The buys today have been at 19.3p, so that is actually closer to 50%.

[qs99] 26/10/2020 09:33

wow, that is some discount....DYOR

[zedder] 26/10/2020 09:30

Hopefully it will, but there is more often than not a lag. Basically we need buyers. Potentially the company could sell some GGP and do a share buy back and that would almost certainly help. However, their position is that why would they sell the crown jewels (their GGP shares), as if GGP is ultimately taken out by a cash bid from Newcrest we will see the full value then. It's just frustrating when you know you are sitting on an investment valued at £x but it consistently shows in your portfolio as being valued at £(x-40 to 50%). As I type, GGP at 24.6p and AAU at 5.7p (both sell prices) gives NAV/share of 37.8p. So the current discount is 45%+.

[come on] 26/10/2020 08:02

But why isn't it following the nav?, got to catch up surely

[qs99] 19/10/2020 10:20

thanks zedder

[zedder] 19/10/2020 10:16

NAV/share with AAU at 5.9p and GGP 22.75p is 35.2p

[srpactive] 19/10/2020 09:38

ggp moving again, should see another increase shortly. dyor active

[qs99] 16/10/2020 07:39

Have bought more last few days as GGP ticked up and this didn't DYOR

[srpactive] 16/10/2020 07:26

come on Yes agree, ggp's chart looks wonderful and ours here is similar, I am expecting ggp to get towards 40p on the next leg up, so 30p here minimum, we shall see. All got to happen first. dyor active

[come on] 15/10/2020 14:20

This is undervalued with ggp moving up this has to follow

[tyranosaurus] 15/10/2020 14:15

GGP moving upwards but nothing happening here. Even my 50k buy made no difference. Hoping for a delayed reaction.

[zedder] 12/10/2020 16:12

There will be a 150k sell from this morning to show at some stage (at 18.85p). I'm not getting out of SVE but have just bought a Renault Zoe R135 Rapid Charge electric vehicle and the proceeds will pay for it outright (with a trade in). Given that these shares were bought at 4.995p on 17th February this year (£7498.50 invested) that's a result!

[telbap] 10/10/2020 08:13

@rban......When they post there annual accounts even if not realised they have to provision for profit/loss

[yorkie52] 09/10/2020 19:34

I think a good accountant should be able to offset considerable losses on investments in the past against potential future gains so I doubt this will be too much of an issue at current prices however if Ggp were to have a substantial appreciation in value then it could be an issue. A nice one though lol.

[starinvestinvestor] 09/10/2020 07:07

I believe that is correct and there may also be a reduction against prior period losses. I think it is useful to consider though as it may explain 4.27p in the discrepancy between a forward looking share price and a current value nav.

[rose_by_another_name] 09/10/2020 06:25

Do companies pay corporation tax on capital gains? If so, surely only when the gain is realised?

[zedder] 08/10/2020 17:18

I've got holdings in CORA (90k shares) and AAU (270k shares) as well.

[starinvestinvestor] 08/10/2020 16:50

Yorkie52. It’s unlikely that illiquidity is the issue as GGP makes up around 90% and AAU 5% of overall value. I thought that some of the discount could be to do with corporation tax ie in this tax year the share price of the 82 million GGP shares has risen from 4.32 (03/04/2020) to 20.10 (39/09/2020)producing a profit of 12,94 million for SVE in this period. However with this tax at 19% at worst this would only reduce the nav by 4.27p. Whilst a decent theory as to why the discount is so large presently eludes us all. I assume that many of us are relying on and see value in the Company’s “commitment221; to pay 50% of the realised profit by way of a dividend sometime in the future.

[yorkie52] 08/10/2020 16:05

Thanks. I guess most of the shares are fairly illiquid for selling in large volumes. Ggp is possibly the exception being a near billion pound capitalisation. Hoping the next news for Ggp continues to be good so that we get the next leg up. I'm keeping my eye on cora gold and Arianna resources to further add to my portfolio. However it would be nice if SVE could do something to cut the discount from around 45% to at least 20%

[zedder] 08/10/2020 14:59

Mine are based on sell prices. I thought theirs were too. In fact in the early days, with some holdings, they used to do sell price -10% using the argument that in illiquid shares that was a more representative way to value the portfolio.