ZPG Share Discussion Threads

[soysoy] 03/10/2005 18:35

tiltonboy

HAVE YOU CHANGE YOUR TUNE NOW
DOES NO 3 EXIST






For Growth Share holders to receive anything, Net assets need to rise from 9.8m to 10.66m, which, barring a big fall in the market, should be achievable. However, this is where life becomes difficult. The growth needed to repay various asset classes is known as the "hurdle rate". In trying to calculate possible future values for the Growth Shares, have a look at the hurdles ahead of them:

1)Management Fee - 0.4% per annum(if growth in assets is above 5.5% per annum)
2)Secretarial and Administration Fees - £44k per annum (0.3%)
3)Management Performance Fee - 20% of the growth in assets over 8.25% per annum
4)Management Terminal Fee - 12% of the final NAV distributable to Growth Share holders.

To achieve the current share price at wind-up in three years time the assets of the company would have to grow by 21%, before deducting charges. When you consider 1 & 2 above add a considerable amount to the required GRY, 3 & 4 will take a huge chunk out of any further growth.

Hope that all makes sense.

tiltonboy

[tiltonboy] 03/10/2005 14:45

I have had a couple of long chats with John Holder today, re ZPG. I haven't got a great deal to add, but I remain impressed by the managers to drive value, with their flexibility on investments, and the gearing used therein.

One point I was corrected on was one of the Management Performance Fees (no 3 in my reply to tiraider, some time back). This no longer exists, but is still on the funddata fact sheets.

tiltonboy

[tiraider] 01/10/2005 13:31

Consistent performance - that's what I like.
Soysoy , you're right to be thinking about 6p though, it's only a matter of time....the chart looks set for another rise as indicators turn positive. 1.75p - that's a cool 41%!

[soysoy] 29/9/2005 18:39

Net Asset Value(s)

THE ZERO PREFERENCE GROWTH TRUST PLC

The Company announces that the mid price Net Asset Values at 27 September 2005
were:

per Ordinary unit 61.52p

per Growth share 8.08p

per Zero Dividend Preference share 53.44p

Gross assets less current liabilities £14.52m

[tiraider] 23/9/2005 09:50

Net Asset Value(s)

THE ZERO PREFERENCE GROWTH TRUST PLC

The Company announces that the mid price Net Asset Values at 20 September 2005
were:
per Ordinary unit 61.39p
per Growth share 8.07p
per Zero Dividend Preference share 53.32p

Gross assets less current liabilities £14.50m

Fair value of the debt is not materially different from the par value, so no
additional Fair Value NAV is required.
END

[soysoy] 22/9/2005 12:26

i think so, should be least 6p
they will after move higher to get me to sell

[tiraider] 22/9/2005 11:41

Maybe there's no big trade coming? MMs just moving the price up as the gap btw NAV and price has widened.

[soysoy] 21/9/2005 10:47

Net Asset Value(s)

THE ZERO PREFERENCE GROWTH TRUST PLC

The Company announces that the mid price Net Asset Values at 13 September 2005
were:

per Ordinary unit 61.19p

per Growth share 7.99p

per Zero Dividend Preference share 53.20p

Gross assets less current liabilities £14.46m


Fair value of the debt is not materially different from the par value, so no
additional Fair Value NAV is required.

[soysoy] 20/9/2005 11:52

yes- i see a rally until march

[tiraider] 20/9/2005 11:49

I agree, all the navs are up + large buy being worked I reckon.

[soysoy] 20/9/2005 11:45

good news, but about time

[tiraider] 20/9/2005 09:24

Get up! 3.75 - 4.75, up a quarter, and it's broken upwards for a new 12 month high. Recent increased volume suggest further as well.

[soysoy] 12/9/2005 16:30

THE ZERO PREFERENCE GROWTH TRUST PLC

The Company announces that the mid price Net Asset Values at 6 September 2005
were:

per Ordinary unit 61.08p

per Growth share 8.00p

per Zero Dividend Preference share 53.08p

Gross assets less current liabilities £14.45m

[tiraider] 03/9/2005 12:20

chart indicates next move will be upwards though...

[tiraider] 03/9/2005 12:14

Looks like value was taken from ZPG to prefs.

2 x large sells yesterday. Although big buyers can buy cheaper, so possibly buys.

[tiraider] 03/9/2005 12:13

Net Asset Value(s)
THE ZERO PREFERENCE GROWTH TRUST PLC

The Company announces that the mid price Net Asset Values at 31 August 2005
were:
per Ordinary unit 60.85p

per Growth share 7.87p

per Zero Dividend Preference share 52.98p

Gross assets less current liabilities ?14.39m

[tiraider] 30/8/2005 11:16

They've got their knickers in a bit of a twist with that RNS.
Looks like this line should have read ...26 August 2005... NAVs are up from valuation on 23/8

The Company announces that the mid price Net Asset Values at 23 August 2005
were:

[tiraider] 30/8/2005 11:11

Correction : Net Asset Value(s)

The attached announcement amends the Net Asset Value announcement released at
16.42. The announcement should have read that the Company has currently drawn
down ?4,520,000 under its ?6,000,000 loan facility with Bank of Scotland.

All other details remain unchanged.
THE ZERO PREFERENCE GROWTH TRUST PLC

The Company announces that the mid price Net Asset Values at 23 August 2005
were:

per Ordinary unit 60.79p

per Growth share 7.95p

per Zero Dividend Preference share 52.84p

Gross assets less current liabilities ?14.39m

The Company has currently drawn down ?4,520,000 under its ?6,000,000 loan
facility with Bank of Scotland.

[soysoy] 24/8/2005 10:41

tiltonboy -your proberly right but i hope your wrong
50,000 trade gone though is it buy or sell @4p

[tiraider] 23/8/2005 14:52

THE ZERO PREFERENCE GROWTH TRUST PLC

The Company announces that the mid price Net Asset Values at 16 August 2005
were:

per Ordinary unit 60.57p

per Growth share 7.85p

per Zero Dividend Preference share 52.72p

Gross assets less current liabilities ?14.35m

The Company has currently drawn down ?4,501,000 under its ?6,000,000 loan
facility with Bank of Scotland.Fair value of the debt is not materially different from the par value, so no additional Fair Value NAV is required.

[tiltonboy] 23/8/2005 11:26

soysoy,

Homework is vitally important in making investment decisions, none more so in the minefield of split capital structures, where what you see isn't necessarily what you get.

ZPG is a highly unusual one, because the hurdle rate is a whopping 12%. I feel people have focused too much on the quoted NAV of the Growth Shares, and all I have tried to do is point out the reasons that the share price stands at a large discount.

tiltonboy

[soysoy] 23/8/2005 11:03

tiltonboy - you seem to have done you home work a lot more hen me
and you given plenty of doubts of my investment
but Ii still see plenty of trades going though @4.5p and even directors buy
so I am fairly happy to hold to next March

[tiltonboy] 22/8/2005 10:53

tr,

Therein lies the problem. If you have a look at the GRY's on splitsonline, you will struggle to find many yields of 7.5% plus.

With the fee structure aforementioned, I think you will neeed yields of nearer 9% just to achieve parity in three years time.

"recent outstanding performance" has been driven by a substantial rise in markets which has helped their holdings in uncovered issues. There is a limit to how much further that level of performance can continue.

Gearing only helps at the margin, perhaps by nicking 1% per annum over and above their cost of borrowing. In a falling market, that gearing can become expensive.

tiltonboy

[tiraider] 22/8/2005 10:29

Well, 21% + fees required so that's 3 yrs x 7.5% (say), with gearing and careful stock selection we're in with a good chance then?
(given the outstanding recent performace anyway)
rgds

[tiltonboy] 22/8/2005 10:18

tr,

The ZPG NAV is worked out on the mid market share price of it's underlying holdings.

The big question going forward is whether debt is paid down, uncovered stocks are bought(which gives growth opportunities, but also lays the trust open to falls in the market), or if they play it safe, but yields are only 6.5%.

The managers have played the market well so far, but will need to continue in the same vein.

tiltonboy