Vpc Specialty Lending In... Share Discussion Threads

[2wild] 10/6/2024 23:09

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

[wilwak] 10/6/2024 22:24

2wild…. Which broker are you using?

Many have now blocked buys in VSL.

[davebowler] 10/6/2024 20:32

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 14:09

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 12:14

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

[2wild] 07/6/2024 20:49

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 20:29

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

[wilwak] 07/6/2024 19:19

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 17:36

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 14:30

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 14:21

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 14:05

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 13:59

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 13:24

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 13:09

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

[wilwak] 07/6/2024 13:07

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 12:27

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 11:50

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

[smidge21] 07/6/2024 11:47

Not helped yesterday by HL banning buy orders

[rogerrail] 07/6/2024 11:45

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

[wilwak] 07/6/2024 10:24

The price keeps slipping. A little worrying.

Starting to feel like SLFR!

[wilwak] 22/5/2024 09:46

It’s pretty normal for even very promising tech companies to run out of cash and therefore face administration without regular injections of funds from shareholders.

Without the funds they would fail but with the support they could grow to be extremely successful.

Often shareholders are ‘expected̵7; or even ‘contracted217; to partake in future funding rounds to maintain their stake. This is most likely the explanation for the follow-on investment.

Hopefully we’re backing a winner! Fingers crossed. Although it’s already being valued well above cost so let’s hope that valuation is conservative.

[riskvsreward] 21/5/2024 13:25

Often they put more money just to keep the same share of a pie. It is good when the pie is growing but absolutely stupid when it is shrinking fast

[cc2014] 21/5/2024 11:31

Presumably it's an opportunity cost thing. Putting in £400k enables them to extract something more than putting in zero.

I'm keeping this on my avoid list. the market tends to push the share price far below what is reasonable in these situations.