Utilico Emerging Markets Share Discussion Threads

[krishall] 10/11/2005 17:04

Well,now No Premium, NAV = share price So it's found it's true level as shouldn't move to any significant discount.

[praipus] 04/11/2005 13:15

Thanks rambutan2

[rambutan2] 04/11/2005 12:32

ords...

they bought them off of nikko, the pe backer...

[praipus] 04/11/2005 11:41

hi rambutan2, is asset value investor's PD Ports holding convertibles or ordinaries?

[rambutan2] 04/11/2005 00:17

hi praipus, your figs interesting. on top of which, imho, the strategic value of the most southerly brazilian container port could be considerable to a big predator.

what really drew my attention to pd was asset value investors (british empire trust) taking a big stake not long before the takeover talk. they've done v well out of property and ports over the years. in any case, with mr saville owning nearly 50% of cnvs, he's got a v strong hand in what unfolds.

[praipus] 03/11/2005 17:30

Thanks rambutan2.

Interesting OCN net tangible asset value £3.83 enterprise value I calculate crudely at £5.80!! I.e. Market cap + £71 million cash or equivalents. So they look very interesting.

PDP/PDPA (take it youve noticed the approach that PD Ports has had recently), share price £1.335 enterprise or theoretical takeover value £3.03 taking the ADVFN figure and dividing it by number of shares in issue.

[rambutan2] 31/10/2005 17:05

i chatted to them about ocn at the uil agm. we both agreed that they potentially v cheap. theyd been out to have a look earlier this year. imho it's a lovely play on china and on being bid for.

note that hansa trust (han/a) has 20% of its port in ocn.

[praipus] 31/10/2005 16:58

OCN purchase showing on RNS

[krishall] 07/10/2005 12:29

nav up today whilst share price down. Interesting non-correlation ! At least now bid price equates to nav value - so no longer a noticable premium.KH.

[krishall] 18/9/2005 09:30

Well.. with NAV rising at a slow but sure pace then the $ premium is gradually being eroded. So if it continues like this then we should start to see some increae in the actually share price within a few weeks. A long term play ... so ... plenty of time to watch the paint dry whilst watching the share price. KH.

[ben gunn] 07/9/2005 11:17

Interesting new fund.

[praipus] 03/8/2005 09:03

The JDT free BB entitled "FTSE calls paying good dividends" has good posters usually, as does Mangals warrants thread above and I post on the ECWC BB though most of the information like NAV can be found on and as you know

Did the same as you with Utilico warrants and ordinary shares (UIL,UILW)sold too early, selling the warrants for 19p thinking i'd made a good move...now 70p!.

Investment Trusts's that hold utility assets are apparently known to outperform the market over the longer term (Benjamin Grahams book Intelligent Investor) partly because of their underlying assets and steady income but also because Investment Trust's do not have to pay Tax on profits unlike a PLC!

So as you imply the argument is for buy and hold whenever possible. P.

[krishall] 03/8/2005 03:27

Praipus... thanks for your latest posting. Always interested to read some informed postings (i.e. factual - instead of the often seen ramping / cheerleader type postings). Will take another look at ECWC. Did hold Utilico warrents for a period. Got in whilst they were grossly undervalued and sold with a nice profit. However, they have shot up further recently. So I definitely could have had better timing with those. There seem to be quite a few oportunities around now ... so it's a little difficult to buy / keep all of them ... unless you have unlimited funds. KH

[praipus] 02/8/2005 21:51

Interesting observation although I feel bound to point out that Ecofin have just raised an additional £50 million in share capital and changed the share structure such that a .9% increase in asset value causes the capital (ECWC) shares to outperform both the Income (7.4% yield (ECW)and the new Ordinaries (5 % yield(ECWO)). This is due to ECWC being highly geared, not to be overlooked if you like utilities.

Also whilst ECWC share price has had a good run some 310% since September last year they still trade at a significant discount and are liable to substancial growth in assets and subsequently share price. The restructuring also decreased the impact of debt on the Capital shares so there is reason to believe the discount could narrow a lot more or even go to a premium like the UEM/UMEW's.

Your term legacy holding is interesting with many utilities and inparticular UK utilities the regulator encourages investment in infrastructure to reduce cost to the consumer and encourage competition. The spin off for investors is that this increases the value of regulated assets and profitability thereby increasing dividends. So the longer a utility is held the more its worth our GDP and new housing starts also help utilites.

Hope I havent gone on too much. My thoughts mixed with a bit of research. Best regards P.

[krishall] 02/8/2005 15:42

Praipus... thanks for the observation on ECWC. However, the price of ECWC has nearly quadrupled over the last 12 months. Therefore it's not likely to continue at that rate with existing investments. UEM have the advantage of starting now with a 'clean slate' (no legacy holdings) to buy in to relevant companies. Just my thoughts anyway... KH

[praipus] 02/8/2005 15:31

Utilico (the parent/management company) also have a significant holding in Ecofin via its Capital shares ECWC. These currently trade at £2.31-£2.37 a 25% discount or thereabouts to undiluted NAV of £3.19 and hold a mixture of Electricity, Gas and Water stocks in the UK, USA and Europe another good buy IMHO.

[mangal] 02/8/2005 09:15

The warrants of these, UEMW, are now listed on the "Equity Warrants List (WT)" thread.

[krishall] 02/8/2005 05:22

For info. Latest info available on top holdings lists the following:

1/. Grupo Aeroportuario del Sureste S.A. de C.V. (ASUR) (Mexico)
11.7% Operator of Cancun Airport plus other regional airports in south-east Mexico

2/. Ocean Wilsons Holdings Limited (Brazil)
7.3% Ports operator and provider of shipping services

3/. Companhia de Concessoes Rodoviarias (CCR) (Brazil)
4.4% Toll road operator

4/. Beijing Capital International Airport Co. Ltd (China)
1.8% operator of Beijing International Airport

5/. Zhejiang Expressway Co. Ltd (China)
1.7% Toll road constructor and operator

6/. Datang International Power Generation Co. Ltd (China)
1.7% Electricity Generator

7/. Hainan Meilan International Airport Co. Ltd (China)
0.9% Airport operator

8/. Luka Koper,d.d. (Slovenia)
0.6% Port Operator

9/. Companhia Energetica de Minas Gerais (CEMIG) (Brazil)
0.5% Electricity utility

[krishall] 02/8/2005 05:15

Warrants were issued on admission to ordinary shareholders on a 1 for 5 basis. 15,004,447 warrants were outstanding on 20 July 2005.

Each warrant entitles the holder to subscribe for 1 Ordinary Share at a subscription price of 100p. Warrants can be exercised on 31 July and 31 January each year from 31 January 2006 until 31 July 2010.

For full details please refer to the prospectus dated July 2005

[mangal] 01/8/2005 23:43

What are the warrant terms please?

[krishall] 01/8/2005 23:38

Purse... Yes, I've noticed that Utilico seem fairly 'switched-on'. I've found that often buying in to the right specialist Inv Trust with the right Inv Company is very rewarding (and less stressful than dealing in individual 'specialist' companies that fluctuate greatly on each rns). Given present small size this fund, then if the managers select the right companies to invest in then we should see some nice gains.

Although it is a specialist fund then I like the diversification in both industries and geographivcal area. The top 10 holdings seem a nice mix. So as you have said then expect much more. I bought in on the ordinary shares. Came across them by chance when doing some research. The warrents look a little over priced to buy in to given risk/reward ratio and the fact that there is less than 5 years to run on them. KH.

[purse] 01/8/2005 21:19

krishall

If its run as well as the main Utilico stocks it will do well.
I bought some on day 1 and am in profit (just).
But I expect much more.

[krishall] 01/8/2005 16:07

Seems to be an interesting Investment Trust that came in to the market last week. Utilities in the Emerging Markets. Somewhat specialized but also diversified as 'utilities' cover a range of industries including airports. Earliest scheduled wind-up meeting is 7 years away. Therefore should be able to realise it's long term potential. Unfortubately trading at about 10% premium now - but even so there seems to be a trickle retail buys of a reasonable amount going through. At least spread is reasonable. Can get inside the bid/offer prices to obtain a spread of just over 1%.

And here's the AIC information on it: