Vpc Specialty Lending In... Share Discussion Threads

[chucko1] 12/6/2024 08:09

In the monthly, they have taken only a first write-down on WeFox, citing market equivalents. But they refer to further material write-downs in the months to come as more information comes in.

I suspect this will cap any share price rise where buyers are excited by the fact that you can now write off the non-lending assets entirely (including WeFox, clearly) and still make a 30%+ return. If you write off half the stuff, return is more like 50%, and on this basis, I bought a few back this morning. Only around a seventh of what I already owned, and still much lighter than previous positions based on the needlessly high price post capital return and material NAV drop. But 43p or so rather than the ex-cap 53p is a different proposition.

[wilwak] 12/6/2024 07:17

Thanks. I’ll open an account with them.

Quarterly report released today shows a lot of loan maturities pushed out from 2024 to 2028.

I guess this is to be expected as a lot of these loans would normally be expected to renew or roll over. VPC can’t just pull the rug out from debtors so are forced to roll over in to a new loan.

So long as they’re performing and the interest rates are good they should be saleable to a new lender.

It’s slightly alarming to see the new maturity graph but I guess it’s no surprise if being realistic.

[papy02] 11/6/2024 08:15

Ditto, bought another slice with II just now for 42.596 + Stamp Duty

[2wild] 10/6/2024 22:09

wilwak. Interactive Investor. Pay £3.99 commission. Plus commission free regular monthly investing.

[wilwak] 10/6/2024 21:24

2wild…. Which broker are you using?

Many have now blocked buys in VSL.

[davebowler] 10/6/2024 19:32

The Oak Bloke... On his Substack..VSL posted a positive +0.64% return in March (positive both for loan revenue and for equity) but the share price has fallen yet further. VSL holds high interest secured loans and equity positions in mainly US Fintech/eCommerce companies. It's fallen to the point where the entire Fintech/Ecommerce equity holdings could be wiped out and worth zero and there's still 25% upside from the loans. Loans where VSL is Senior and Equity where VSL has preference.A 44% discount where dividends and capital returns over the next 12 months alone should be a further 8p+16p = 24p.On a simple returns basis that leaves you owed 16.5p a share, while the remaining NAV could be around 60p a share net assets.... a 72.5% discount to NAV.With further capital, dividend returns, and equity holdings which might surprise to the upside, I reckon you could get to a

[meanreverter] 08/6/2024 13:09

As a continuing holder, I object to the company making any payment to departing holders at a premium to market price. If the company is going to spend its (i.e. shareholders') money on buybacks, it should maximize value by buying at the best price: namely, at market price.

[brucie5] 08/6/2024 11:14

Just over 40p was the 2020 Covid low. Not sure if that's significant, but this looks oversold.

[2wild] 07/6/2024 19:49

Next dividend is for the period 1 January to 31 March, so probably maintained at 2p. Perhaps they will reduce following one depending on revenue reserves.

Picked up 10000 at 42.365p just before the close.

Latest nav -4.26p return is 73.8p.
Take off an arbitrary 15% = 62.73p.
Potential 48% capital upside. Plus dividends.

[rogerrail] 07/6/2024 19:29

Perhaps you should suggest this to the investment managers,[e-mail] fao Mr Richard Levy CEO

[wilwak] 07/6/2024 18:19

Yes, the income being generated is now well down. There’s no guarantee that 2p per quarter revenue dividends will continue.

All the talk was that VPC were a sizeable respected manager but this is all a complete fiasco. There’s no exit route for investors given the huge discount so we’re all tied in and hoping for NAV+ eventually.


I’d like to see a buyback policy even if it’s at 15% discount to NAV. That should benefit ‘holders’; and also allow exits for those who are desperate to get their hands on their money.

[feddie] 07/6/2024 16:36

The foeward yield is unknown as the quarterly dividend will be reduced after the return of capital. Should be declared soon.

[riskvsreward] 07/6/2024 13:30

One sure factor, as I pointed out some months ago, is that no insider buys at all which indicates the NAV is not to be trusted,just like the managers and directors of this fund.

[dodger777] 07/6/2024 13:21

I assume is very naive of me to expect the managers to make some comment re the share price collapse, I assume they just don’t care.

[brucie5] 07/6/2024 13:05

It does seem extraordinary. Thankful to have sold on my own behalf a few weeks ago but I still hold a rump on behalf of a thankfully well diversified third party passive folio. It's now down some 40% and each time I look I think that must at least present value at this level!
Can anyone share some more profound analysis than than the one that goes:
-45% discount to NAV + 18% yield = bargain.

TiA.

[riskvsreward] 07/6/2024 12:59

People at this forum used to praise this fund management house was a reputable one. By the performance it looks like they are no different from other disgraceful ones. How can a responsible and respectable credit fund lose so much capital!

[spectoacc] 07/6/2024 12:24

Reliably walked down.

Edit - a decent 500k on the bid at 41.5p holding it up now, seller might be done.

[panshanger1] 07/6/2024 12:09

At least we have an end game here the question is how reliable is the NAV

[wilwak] 07/6/2024 12:07

I invest through iWeb and Barclays who both have a habit of blocking purchases on more ‘unusual’; shares which is really frustrating.

Ironically I’ve recently opened an account with HL so that I can trade such shares. I’d got the impression that they didn’t block shares! Duh!

[spectoacc] 07/6/2024 11:27

Odd how in this big rally, some haven't been involved whatsoever. Eg VSL, RESI, LABS.

You can bet they'll get involved when it all turns down again.

Seems to be a big seller at VSL, with (as @smidge21 says) no buys now possible via HL clowns.

[dodger777] 07/6/2024 10:50

This really has been a disaster for shareholders. Management I assume still raking it in.

[smidge21] 07/6/2024 10:47

Not helped yesterday by HL banning buy orders

[rogerrail] 07/6/2024 10:45

More jobs for the boys, you would think in the circumstances they would be trying to reduce expenses.