Vpc Specialty Lending In... Share Discussion Threads

[2wild] 09/4/2024 12:06

With all the record all time highs, increased corporate activity and successful IPOs in USA, during last few weeks. Suspect equity portfolio will show at meaningful increase at end of March, if not end February, due imminently. I think decent chance of 80p NAV realisation plus Dividends.

[chucko1] 09/4/2024 10:33

WC, VCP almost go out of their way to produce reports that are difficult to calibrate to known metrics. It makes it difficult to go super long, no matter the arithmetic.

I was hoping this would be a better opportunity than it has so far availed, but there is a long way still to go.

At the current price, even though I remain moderately sceptical, I have reinstated a long position greater than when I sold out a few weeks back - greater in nominal if not current value.

Yes, GABI is relatively straightforward. Even SLFR/X is/was easier to get to grips with, and as car crashes go, only DGI9 comes close to that in the current era.

[williamcooper104] 09/4/2024 09:45

No shortage of investment trusts at a discount and being wound up Prefer API, GABI and even DGI9 as easier to understand

[wilwak] 09/4/2024 09:34

I wondered if the share price would jump on the first sign of a capital repayment but no significant change yet.

I’m scratching my head as to whether to bang this year’s ISA allowance in to it.

Um…

[waterloo01] 09/4/2024 09:08

SpectoAcc, indeed,and I hold most in tax wrappers, but I still have capital in my trading account, and while I use the max GCT allowance, I still need income. These are classed as interest payments, so getting a decent return, even if one has to pay tax. Outside of wrappers, would get hit with income tax either way.

Edit: and agree wish they had never gone into wind down. Voted against but it's a done deal now.

[dodger777] 09/4/2024 09:05

I don’t think anyone knows how much we get back least of all the management. The ‘best interests’ of shareholders wind down as claimed is anything but..best interest of someone I’m sure, management in the money they take in to ‘manage’ probably.

[solarno lopez] 09/4/2024 08:43

Some on here appear to be saying we will get back a lot less than the 83p NAV more like 53p.

[waterloo01] 09/4/2024 08:42

Gold held via ETF.

[solarno lopez] 09/4/2024 08:27

As I thought Specto and thanks

[spectoacc] 09/4/2024 08:21

Legal tender physical gold is CGT-exempt, inc sovs.

ETF will be CGT'able.

Silver's the one they get you on - 20% VAT for bars etc.

(VSL outside a tax wrapper would be painful - years of 8p pa taxable income distributions, followed by a 10%/20% CGT loss).

[solarno lopez] 09/4/2024 08:17

Physical gold I would suggest is not subject to CGT or is it ?

[waterloo01] 09/4/2024 08:14

AV. up 65% since purchase, Physical gold up 80% since purchase, between them a £20k plus profit, and a few others

[solarno lopez] 09/4/2024 08:08

Which is that WaterlooO1 ?

[waterloo01] 09/4/2024 07:59

lol. Well as the allowance is now only £3k, can use it on a stock in significant profit

[chucko1] 09/4/2024 07:55

(!) if that's your idea of an upside, I would hate to be with you on a bad day.

[waterloo01] 09/4/2024 07:51

Another upside are the tax loses (outside an IS/SIPP), when eventually sold.

[chucko1] 09/4/2024 07:39

Well, I am scratching my head a little! The leverage is stated as 0.27x in October and 0.15 x as of "now". The October update states the leverage as 0.25x then, and the January 2024 update cites 0.10x. So I cannot determine the definition they are employing for this release.

Anyway, 5.12% of the 83.18p January NAV is 4.2588pps, and although that may appear to be small beer for a capital return, they have repaid half the debt (gearing facilities) and so we are likely to see some higher repayments in due course. From a value perspective, I am interested to observe the fall in share price upon this going ex-cap, and whether the theoretical increase in discount were the share price to fall by 4.25p offset by value investors (like myself) or ignored by those with more pressing concerns about whether or not to continue holding a liquidating IT.

Much more to travel on this one.

[grahamg8] 09/4/2024 07:36

The ongoing share price is a bit of an unknown. As assets turn into cash then the discount should reduce. But if assets are sold at a discount then future value of remaining assets will be seen as doubtful, the discount will increase. Or near term assets are returned at full value, then future asset disposals seen as more secure and the discount will reduce. This is the risk/reward conundrum for holding any share in run down.

The first return will be May (EDIT appx 4.25pps), a month earlier than I expected. And we are clearly being given a steer that we will not have to wait too long before the next one.

[nicholasblake] 09/4/2024 07:32

EV is properly calculated using net debt, so using cash to pay down debt makes no difference to it.

[spectoacc] 09/4/2024 07:13

Am awaiting the @Chucko1 view ;)

[waterloo01] 09/4/2024 07:11

1st of many? While NAV might reduce by same amount, the repayment of debt should increase the enterprise value?

[spectoacc] 09/4/2024 07:09

Looks a bit cr*p to me, any views? 5% of NAV..

[cwa1] 09/4/2024 07:08

Initial Return of Capital through the B Share Scheme

After taking into account the contractually required reduction to the Company's gearing facility as well as preserving liquidity for foreign exchange hedging and working capital requirements, the Board has decided to make an initial distribution to shareholders of $15 million, equivalent to approximately £11.9 million as at the date of release, through the issue and redemption of B Shares. The capital to be returned represents approximately 5.12 per cent. of the Company's Net Asset Value as at 31 January 2024.

Pursuant to the authority received from shareholders at the General Meeting B Shares of 1 penny each will be paid up out of the reserves of the Company and issued to all Shareholders by way of a bonus issue pro-rata to their holding of Ordinary Shares held at the Record Date of 6p.m. on 18 April 2024. The B Shares will be issued on 19 April 2024 and redeemed at 1 penny per B Share. The Redemption Date in respect of this initial return of capital is 25 April 2024. The proceeds from the redemption of the B Shares will be sent to uncertificated Shareholders through CREST or via cheque to certificated Shareholders on or around 10 May 2024.

[wilwak] 05/4/2024 23:40

I’m tempted to buy too! Good news about the first return of capital coming soon.

[2wild] 05/4/2024 12:14

Confirmation first B class return will be announced next week. May also get NAV updatenext week for February. Added at 52.95p, following the announcement this morning.