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Share Name Share Symbol Market Type Share ISIN Share Description
Volta Finance Limited LSE:VTA London Ordinary Share GG00B1GHHH78 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 6.20 6.00 6.40 6.20 6.20 6.20 0.00 07:45:50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 0.0 38.7 106.0 5.8 227

Volta Finance Share Discussion Threads

Showing 401 to 422 of 550 messages
Chat Pages: 22  21  20  19  18  17  16  15  14  13  12  11  Older
DateSubjectAuthorDiscuss
23/10/2020
07:32
See below the Hardman report posted by RAM on 15th September. Seems to me that the best DCM is just to keep raising the dividend. The Market won't ignore the yield forever! Dividend: In early April, Volta cancelled the dividend payment due on 28 April until there was more visibility on likely cash receipts. On 11 May, a reduced dividend was declared (€0.1 vs. €0.155), to be paid in June. On 30 June, a dividend of €0.11, to be paid at end-July, was also declared. Looking forward, the intention is to pay a dividend equivalent to 8% of NAV, which, with the group at a 25% discount, implies a 2021E dividend yield to shareholders of 12.1%. If sentiment does improve, investors will benefit not only from the capital appreciation in the NAV, but also from a reduced discount to NAV, and also a higher dividend. The value investors will give to the dividend will also reflect its cover. In the six months to July, Volta received €17.7m of coupons/interest from its investments. The annualised equivalent is a 17% annualised yield on the end-July NAV. This cash receipt is after €1m of technical effects, which are known to reverse in October, and €1m of effects, which will reverse at some stage, when interest rates normalise. Adjusting just for the former implies €37.4m of annualised cash receipts, which takes the yield up to 18%. While we cannot be certain of future cashflows (see Risks section below), it does suggest 2x or more coverage of the currently planned dividend level of 8% NAV.
skyship
22/10/2020
22:57
I think Fair recently gave more support/visibility to their dividend? But yes shouldn't explain the large difference in discount, but could explain recent trend It seems that some stocks are permanently at a discount or other at premium. I guess due to structural lack of demand. If i remember well, volta did a listing in UK to reduce that discount. Then you have some others example where the trust was providing poor yield, not achieving it, but still trading at a premium until recently (eg MGCI). Dont really see a catalyst to have discount reduction, but would be glad to be wrong
yieldsearch
22/10/2020
15:08
I see FAIR trading higher, yet VTA still marooned in the depths on a 35% NAV discount. Any views?
skyship
13/10/2020
12:27
Yieldsearch - well yes, you named some. Non-retail property debt, funds of CLOs, home mortgages, funds of consumer debt even. The fiscal response is materially beneficial to any lender, and low interest rates also as they increase the pool of new money to support prices and businesses. I am also in RECI and haven't owned UEX as I did not get timing right. Mallinkrodt bankruptcy over the weekend pushed leverage loan default rate up to just over 4% from just below, and expectations now are for that to top out at 6.6%. httPs://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/us-leveraged-loan-default-rate-expected-to-peak-at-6-6-lcd-survey-60554195 VTA is 47% CLO equity, which gets impaired much before CLO debt. If we model that half the CLO equity ended up being worth nothing, and 10% of the debt*, then that would make a 35% loss of capital. Income would fall by lets say 50% as the equity will be the lions share. That would mean for a VTA holder a dividend of half as much (5% at purchase), still twice covered. The share price would of course drop in those circumstances, indeed the discount would likely widen, but that is immaterial to the long term return of the circumstances I outlined. As it is the NAV of our underlying already to an extent discounts anticipated losses. My understanding is that there is effectively no bid for impaired instruments that fall below 80% until investors in distress get interested at 60% so there are potentially step function changes, but otherwise the NAV of the collateralised unit incorporates loss expectations. Actually what the month to month NAV changes show is that overall loss expectations are actually retreating. *From what I can see in the asset list our CLO debt is quite a long way down the stack too, so perhaps 10% is optimistic if equity took such a big haircut. It is step functions all the way down.
hpcg
13/10/2020
09:40
hpcg: re pools of debts could you elaborate? I am in ukml and reci. sold uex i think fully priced. bought vta at 3.93 recently
yieldsearch
13/10/2020
09:11
Skyship - I think there are pools of debt that are materially underpriced. We can see this exhibited in several investment trusts listed in London. I have seen some fund manager commentary saying the same. It is fear of the unknown, and I think flows to big tech equity that are providing this opportunity. The good thing about it from our point of view is that we are paid handsomely to wait. Indeed we are paid handsomely even if the market is correct about NAV.
hpcg
13/10/2020
07:58
So at E4.13 the discount is now 32%! Allied to the 10.65% yield, surely some institution or other will recognise the value here and buy a few. Not holding my breath; but certainly holding my stock.
skyship
12/10/2020
21:29
Sept. monthly perf: +4.8%
yieldsearch
07/10/2020
16:27
The discount certainly covers a multitude of bad outcomes. Worse than any seen in the CLO space after the GFC.
hpcg
07/10/2020
16:09
hpcg - XD now. I've made a small top-up today @ 413c (377p), available due to that 30k sale at 400c. At that price the discount is 28.8% and the yield a remarkable 10.65% The only problem is the immediate markdown in the portfolio due to the wide spread; but that's a bit of a short-term irrelevance.
skyship
30/9/2020
17:09
I bought some this afternoon and will look to add more in October assuming the price comes down by the dividend. My hypothesis is that the dividend will increase for the next quarter's payment. I was tempted to get the Dutch shares where the spread is more transparent but they have seemingly dozens of initiatives around withholding taxes at the moment.
hpcg
30/9/2020
16:31
Interested in his comment that if VTA had a mark to modal at the moment their NAV would be 10/15pc higher.
cerrito
22/9/2020
02:44
SKY, likewise I don't hold many as wary of the economic outlook, the leverage and the mkts distrust of CLO vehicles. Would be happy to add if became really oversold though ie was able to pick up a few FAIR in march when it looked too cheap and now up over 50% with chunky div.
rambutan2
21/9/2020
08:56
RAM - I remain very much on the fence with this one. In spite of the 25% discount and fantastic 10% yield I still hold only a 3.8% allocation. I'll seek to add on a dull day......but with the Market down 2.5%, VTA, as ever, unchanged!
skyship
20/9/2020
20:15
But remember, BGLF nav is mark to model, not mark to mkt, so deserves a bigger discount. imho
rambutan2
20/9/2020
12:28
Interesting that it highlights BGLF on a larger discount to NAV and yet the BGLF board on Advfn has only 4 posts on the last 6 years...
stemis
15/9/2020
21:19
Update from Hardman: htTps://www.hardmanandco.com/wp-content/uploads/2020/09/200915-Hardman-Volta-Finance-Value-added-by-active-portfolio-management-1.pdf
rambutan2
13/9/2020
14:31
Cerrito - at the EuroNext offer price of 436 the discount = 24.8% and the yield assuming 44c annual dividend = 10.1%. Think I may seek to add at that EuroNext price, as currently on only a 2.5% allocation.
skyship
12/9/2020
22:49
I note that the discvount at the end of August between the LSE price(I assume the mid price and note of course wide spread)and NAV of about 25% is the highest iun the three years that I have been monitoring this yardstick.
cerrito
12/9/2020
22:45
Good that the August report came out earlier in the month than normal and even better to read that apart from one minor historical position all equity positions received their Q3 coupon payments and that in October the amount of these payments is expected to be higher.
cerrito
24/8/2020
11:07
Thanks as ever Dave for the broker updates; here and everywhere else you post!
hpcg
24/8/2020
09:10
Liberum; Underlying loan pools performing well Event The CLO funds have reported NAV figures for July with the majority reporting modest mark-to-market revaluation gains. Loan markets were relatively strong (US +2.0%, Europe 0.7%) on the back of favourable technical factors (low new issue supply and steady demand from CLOs). The US 12-month loan default rate (by amount) rose to 3.9% in July, the highest level since February 2015. Loan downgrades have continued, although the pace has slowed. 37% of the US loan market has been downgraded so far this year. According to S&P, the three-month rolling downgrade/upgrade ratio was 8x in July, compared to a peak of 43x in May. All of the funds have reported relatively strong cash flows from the July quarterly payments. According to Wells Fargo data, 24% of US CLOs suffered a breach of their interest diversion tests. Within the portfolios of listed funds, only one US CLO position (Volta) did not receive cash flows due to an interest coverage test breach. Returns in the month ranged from -1.2% for Volta Finance (partly due to FX) to 4.6% for Marble Point Loan Financing.
davebowler
Chat Pages: 22  21  20  19  18  17  16  15  14  13  12  11  Older
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