Vpc Specialty Lending In... Share Discussion Threads

[2wild] 11/1/2020 16:33

I've sold out of SQN due to continuing falls in NAV and increased VSL.
Over 12 months SQN nav fell 3.81p from 97.49 to 93.68p.
7.25 Div-3.81 = 3.44.
3.44/83 = 4.1% net adjusted annual yield.
Over last 6 months nav fell 2.76p from 96.44 giving 2.1% net adjusted annualised yield.
Although SQN NAVs declines could reverse, given the falls have excellerated over last 6 months this seems unlikely.

[chucko1] 10/1/2020 18:53

I’m more inclined to focus on the recent performance numbers, but it’s all heading in the same direction.

SQN looking ready for a move higher as well. Both of these have been suffering from an excess of risk aversion. The REITs (some of) became rich in comparison.

[skyship] 10/1/2020 16:44

Happily topped-up @ 79.05p when I read the "Holdings" RNS stating a close associate of Richard Levy had bought 61,301 @ 79.0p

Chart suggests a break through 80p takes us into a new trading range up to 84p:


free stock charts from uk.advfn.com

[2wild] 02/1/2020 20:14

These still look good value with 10% yield and 14.3% discount to a rising NAV at the closing offer price.

[playful] 02/1/2020 19:03

Not sure a 15p profit is enough...

[wskill] 02/1/2020 09:06

Wouldn't like to lose this 10% yielder but I suppose for a quick 15p profit many will be tempted,its difficult for management to reduce this discount and they have made a sterling effort to do so.

[rambutan2] 02/1/2020 03:22

Noted, from last year's annual report. I was intrigued as to why Weiss (also LIM) had taken a position and why the board were buying in such large amounts so rapidly:

Viability Statement
In accordance with provision C2.2.2 of the UK Corporate Governance Code, published by the Financial Reporting Council in April 2016, and as part of an ongoing programme of risk assessment, the Directors have assessed the prospects of the Company, to the extent that they are able, over a three-year period. This period is appropriate since the Company is a long-term investor, the Directors have chosen a three-year period as this is viewed as sufficiently long term to provide shareholders with a meaningful view, without extending the period so far into the future as to undermine the exercise.

Whilst the Company’s Articles of Association (the “Articles”) require an ordinary resolution for continuation of the Company to be proposed at the Company’s Annual General Meeting in 2020 the Directors have a reasonable expectation that the continuation vote will be supported by shareholders, and thus have considered a three-year period from the date of this report, subject to shareholder approval in 2020, appropriate for the analysis instead of a one-year period up to the continuation vote.

The Directors confirm that they have a reasonable expectation that the Company will continue to operate and meet its liabilities as they fall due over the next three years. In making this assessment, the Directors have taken into consideration each of the principal risks and uncertainties on pages 24 to 27, their mitigants and the impact these might have on the business model, future performance, solvency and liquidity. In addition, the Directors considered the Company’s current financial position and prospects, the composition of the investment portfolio, the level of outstanding capital commitments, the term structure and availability of borrowings and the ongoing costs of the business. As part of the approach, due consideration has been given to the uncertainty inherent in financial forecasts and, where applicable, reasonable sensitivities have been applied to the investment portfolio in stress situations.

The main risk to the Company’s continuation is shareholder dissatisfaction through failure to meet the Company’s investment objective, through poor investment performance or through the investment policy not being appropriate in prevailing market conditions.

The Board has given this particular consideration when assessing the longer-term viability of the Company. Performance and demand for the Company’s shares are not things that can be forecast.

Based on the foregoing analysis, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the three-year period of their assessment.

[wskill] 01/1/2020 18:25

I would look at FRES gold and silver miner it has a market cap of £4 billion gold reserves 39 million ounces around $60 billion and silver reserves of 2.2 billion ounces around $35 billion at today's prices it's profitable pays a dividend.
Also after investment in new mines next year costs will fall and production will increase .
If there is an increase in gold and silver prices profit will increase last time the gold and silver prices were at this level FRES was above £10 today it's £6.40.

[skyship] 01/1/2020 17:42

Specto - not a true gold bug. I hold silver through PHSP; but the two tips of GGP & BMV are down to the fact that both are approaching gold extraction, so no real exploration risk. As you will read - both are very special cases and both could very easily double this year.

eeza - would like to think so! 😊

[spectoacc] 01/1/2020 17:21

@Skyship - thanks for your kind words, & HNY. Safe to say I've been a fan of VSL for slightly longer than it's been a good investment :) But very happy to sit on it for 10% & some future closing of the discount.

(Re JDT thread - had no idea you were a gold bug! Recently out of ROCK & GPM, currently long PHAU, will look at suggestions tomorrow).

[eeza] 01/1/2020 17:15

"Every year since 2005 I start a new thread under the epic of JDT. No-one goes there now"


SPLITs Followers’ Thoughts for 2020


Perhaps needs changing to 'Skyship's winners for 2020'.

[skyship] 01/1/2020 17:06

A0002577 - BBB easier perhaps! - Thnx again for introducing me to VSL

Taken a look at your Buying Opportunities thread over at LemonFool - will contribute when something useful to post.

Every year since 2005 I start a new thread under the epic of JDT. No-one goes there now, but a few I know do so just to view my Tip of the Year & my Spec of the Year.

Last year RGL (+31.5%) & BMV (+30%)

This year can be seen here:



A Happy New Year to one and all...

[apollocreed1] 31/12/2019 21:10

I took note of this trust when I saw the Director's dealings - Richard Levy regularly buys large amounts of stock every few months. Still a good deal at today's price.

[a0002577] 31/12/2019 14:19

My pleasure SkyShip - did you read this thread on 'FALLING KNIVES' which I started in September? All bar Global Ports are doing quite well. Gore Street was sold for a reasonable gain and the proceeds put into VSL making me somewhat overweight in this one.

with kind regards - BBB

[skyship] 31/12/2019 11:29

Joined you all for 25k @ 78.2p this AM, after hearing of it on the RGL thread at LemonFool - thnx BusyBumbleBee.

Pleased to see some familiar posters here - DB & Specto inspires confidence; now I see chucko here too.

I had a serious concern with P2P, so missed that bullet. Glad to read that VSL totally changed their modus operandi - and all the better for it too it would seem.

[chucko1] 31/12/2019 10:44

This appears to have much further to run. It’s been a question of how many REITs to exchange for this.

[wskill] 31/12/2019 10:30

Well done to management in turning it round very happy with my 10% yield with even some capital growth on top this is an excellent investment and I am sure it will be in the future.

[spectoacc] 31/12/2019 07:24

I'd be first to admit it wasn't always, but VSL has become a class act. Pushing another 1% monthly return, NAV 92.65p (end-Nov), thumping yield.

[2wild] 09/12/2019 20:06

Invesco sold 0.27% of the company last week.

[a0002577] 09/12/2019 16:51

This is worth a read - gives an insight as to how they work

[spectoacc] 06/12/2019 16:10

500k bought back by the co today, great for NAV & all, but reckon I could have got them cheaper.

[chucko1] 04/12/2019 12:29

I’ve been buying a chunk of this recently. The pressure on the NAV the past 4 years seems to have now abated and likely annual returns of circa 11% on offer.

Good enough for me. Who needs cold fusion, anyway?

[davebowler] 04/12/2019 12:07

Liberum;
Mkt Cap £241m | Prem/(disc) -16.7% | Div yield 10.5%

Event

VPC Specialty Lending Investments generated a 0.95% NAV return in October 2019, bringing the YTD NAV total return to 9.6%. Income from the balance sheet investments has continued to drive performance. The balance sheet investment in Branch International was fully repaid during the month. October's NAV also benefited from a gain on equities of 0.32%. VSL has maintained a strong level of performance from the beginning of 2018. We expect an eventual re-rating in the discount given the ongoing high monthly returns

[2wild] 03/12/2019 10:46

NAV increased to 93.75 at 31st Oct. Based on current 77p offer price, yield is 10.4% and discount to NAV of 17.8%.

[2wild] 15/11/2019 16:00

Picked up a chunk at 77.752p today. Look great value on a 16% discount to NAV and 10.3% yield. Usually go Ex Div 3rd or 4th week of November, so 5 x Ex 2p in next 54 weeks = 12.4% annualized.