Vpc Specialty Lending In... Share Discussion Threads

[skyship] 09/3/2020 14:10

ahh - sorry...

[waterloo01] 09/3/2020 14:09

I got that, hence the lol.

[skyship] 09/3/2020 14:03

waterloo - I think CWA1 was making a deliberate play on words...

[waterloo01] 09/3/2020 13:16

Lol. Pawn not porn. Spell check!

[eeza] 09/3/2020 13:14

Wot a prorn.

[cwa1] 09/3/2020 13:10

Not surprised those porn brokers do well with everyone inside and not much else to do...

[waterloo01] 09/3/2020 13:08

Looked up some articles on what does well during recessions and porn brokers etc do very well. As long as they maintain lending discipline, these should do well IMO.

[redhill9] 06/3/2020 13:02

waterloo01, while the buybacks are increasing NAV per share they are also reducing cash available for dividends so I see a direct offset there.

I too am unclear how VSL may be affected by a severe recession but am holding for now and trusting the management, although do they have a lot of leeway to manage the assets?

[waterloo01] 06/3/2020 11:31

Ex divi of 2p yesterday

With all the buy backs, they could end up paying an even higher divi next year. The question I'd like to understand is how a recession effects the business. It will suffer higher defaults but equally probably also a big increase in business. My initial view, as long as they keep discipline in making sure the companies in the portfolio keep good quality underwriting, this could do well going forward, so potential both for increased share price and increased divi. Management is certainly aligned.

[skinny] 06/3/2020 09:27

Or a sirloin steak!

[chucko1] 06/3/2020 09:26

Yes, it’s red meat to many investors.

[2wild] 06/3/2020 09:23

Much rather management have a high steak than no steak

[davebowler] 06/3/2020 09:13

No problem Skyship
Liberum.
Strong start to 2020

Mkt Cap £244m | Prem/(disc) -16.1% | Div yield 10.1%

Event

VPC Specialty Lending Investments' NAV per share at 31 January 2020 was 94.2p, representing a total return of 0.9% for the month. Income from the balance sheet investments has continued to drive performance, with revenue return generating 0.8%. January's NAV also benefited from a capital gain of 0.1%. VSL has started 2020 strongly, carrying on from where it left off in 2019, which was a record year for NAV returns (11.3%). The trailing twelve month NAV total return is 11.6%. The current discount to NAV at which the shares are currently trading is attractive in our view given the high dividend yield and strong performance of the portfolio.

[skyship] 06/3/2020 08:45

db - thnx for posting the above.

"shareholders may have differing views on management owning an uncomfortably high but not controlling percentage of the company"

Well at least we get a 10% yield for holding.

[davebowler] 06/3/2020 08:23

Stifel;
VPC Specialty. Last week, VPC announced that a fund controlled by them had purchased c.17% of the company, taking its total interest to c.18%. The fund, SVS Opportunity, is 90% backed by a US insurance company with the remaining 10% coming from insiders. SVS is structured as a typical GP/LP structure, meaning VPC management effectively control the entire stake. So, what did the insurance company receive in return for giving away its voting rights? Supposedly nothing, as it was more concerned about the treatment of the capital charge on its investment. In an environment where shareholder engagement and responsible investment is gathering steam, we find that surprising. However, the transaction has clearly suited both parties as the continuation vote, scheduled for this year, is now largely academic, although we believe it deserves to pass. So, while the short-term impact is positive as the risk of Invesco dropping the stock has passed, shareholders may have differing views on management owning an uncomfortably high but not controlling percentage of the company. (Analyst: Sachin Saggar).

[eeza] 06/3/2020 07:38

RNS
NAV = 94.16p.

[eeza] 04/3/2020 11:34

537,000 thro at 80.50p. Seller cleared?

[badtime] 04/3/2020 09:33

Ex div tomorrow morning

[waterloo01] 03/3/2020 16:12

In which case it will drop by 2p on the 6th. Free dividend if bought yesterday.

[badtime] 03/3/2020 16:09

...on the share price today..that and a bounce in the market

[badtime] 03/3/2020 16:09

I know..what I meant with these turning exdiv shortly peeps back in for the div possibly having an influence on the sp

[skyship] 03/3/2020 15:27

XD this Thursday - 5th March.

[eeza] 03/3/2020 15:26

It wasn't yesterday.

[badtime] 03/3/2020 15:21

Ex div due must be an influence

[eeza] 03/3/2020 14:18

Sellers slowly taking the boot off the throat?