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Agricore, thanks for the update. LUCE updates was telling on the UK in general this year!
Mr Flibbles, you'll be pleased to note then that the discount has narrowed to "only" 40.2% today = £3.68 NAV vs £2.20 buy price.
The less positive news is that NAV has dropped by 19% from 31/1/22 to 30/4/22. Though, to be fair, the FTSE all share is down more than this.
I'm neutral on the prospects here; while these are turnaround plays they are also reliant on growth. It's debateable whether a reduction in discretionary expenditure could affect some holdings..... or am I regurgitating the general negativity and we are just talking ourselves into a recession!
The positive is the past 5-year 10-year track record which is extremely good.
As of 26th March 20022, ESO sits on around 45% discount and the Fib 0.168 retracement level.
I am sitting on a hefty and large loss, looking forward to a bounce and brighter future. *Could* easily be multiples of the current share price.
Thanks for that post -a very detailed analysis.
The price dropped dramatically because their biggest holding Luceco, had an accounting issue..and the Luce price cratered, and dragged ESO with it. the FD left because there were issues about stock and margins from China. Now fully resolved and share price of both around all time highs. As has been pointed out previously the current SP is covered by value of the Luceco holding and they have a lot of net cash. A discount to NAV approaching 30%..but there is the question of where the Luceco SP should be. Luceco holders should arguably switch from LUCE to ESO, but there are liquidity and dealing spread issues. Question has to be what do they do with the cash? More share buybacks or actually buy another business? They are always looking for a good deal..but there is a lot of fund money looking for good investments...
I'm looking at buying into this fund, but I notice from charts that the share price dropped about 80% at the end of 2018. Is this correct or did they do some corporate action such as a share split or paying a special dividend? Thanks in advance.
The Net Asset Value ("NAV") per share of the Company as at 31 January 2021 was 437.63 pence per share.
EPE holding in Luceco alone is valued in excess of £100m more than entire EPE Market Cap.
Direction is very good. Luce keeps going up, more buying from the main shareholder and huge discount with NAV rising month by month. Share buy backs. Looks like one to tuck away for a couple of years and see what has happened.
Interesting moves. Sold 9% of Luce stake for £10M (12.5% of Market cap of whole business) and started to buy back shares. The massive discount has a chance of being unravelled if they buy enough shares - 10% of share buy backs would support a bit of a rerating and then still a lot of potential. This could be a great long term hold - spread as always is really offputting
Interesting to see that their 27% stake in Luceco has surged (currently worth in excess of GBP 100m at the time of writing) but I do worry about their other investments:
1) 40% stake in David Phillips. Audit report was qualified due to unreconciled sales, Net Liabilities of GBP 11m and losing around 5m a year.
2) 1.9% stake in Pharmacy2U. Latest accounts show still making a large losses of c. 15m but I could see potential. Stake is pretty insignificant.
3) 85% stake in Whittard of Chelsea. Accounts only available upto 2018 showing it was just scraping by and had 9m net liabilities. Hard to see 2020 as doing them any favours...
In total these investments have a carrying value in the financial statements of c. 25m GBP, supporting by a 7.8 multiple of EBITDA (increased from 5.6 in the previous report) which feels pretty optimistic given they have been hemorrhaging money.
Disappointing, but it has done this before. No one interested in this IT so a few trades quickly change the SP The large 10p spread does not help. Thinking of adding afew more shares to our holding
Big discount of around 42% on sell price and 38% on buy price. Value here if we only knew what they had invested in. We must be missing something.
CURRENT SPREAD IS 10% SELL AT 15Op BUY AT 165p
THE MMs ARE NOT HELPING EITHER.
It appears that the EPE holdings are not available anywhere, with their web site a waste of time.
We have a small holding in the IT but would have been interested in increasing this holding if more information was available (looks impossible to get less information!!!!)
The spread also puts investors off. You have to buy at a very low point to be able to just break even when there is a rise in the SP.
We used to get a list of their holdings, but that has dissapeared. They are not interested in the shareholders, which puts investors off.
APOLOGIES THAT LAST POST WAS MEANT FOR ANOTHER COMPANY.
AS SAID PREVIOUSLY THE SPREAD IS OFF PUTTING HERE.
Note they are not buying, at least not in their names, for a long time. If it is cheap why do they not add to their holdings?
Problem here is the spread of nearly 11% that is what has stopped us buying more. This is not an uncommon problem in Aim, however a lot of reasonable spreads. 146 -149 would attract business.
Surprised there are no trades today,
Sitting on £14m cash and a NAV of 216p :-)
RNS for 216p NAV here:
http://www.lse.co.uk/share-regulatory-news.asp?shareprice=ESO&ArticleCode=55qr3ida&ArticleHeadline=Net_Asset_Value_and_Disposal
A NAV of 216p here now. About +50% higher than the midprice this morning. Sold off a company for £14m.
The company expects the suspension from trading to last for about six business days while it obtains a Bermudian ISIN.
GOING TO BERMUDA, THEN SUSPENDED, SO NO TAKE OVER, AS THE BERMUDA CHANGE WOULD NOT BE ON.. WHAT ARE YOUR GUESSES? NONE I SUSPECT AS NO ONE READS THESE FOR EPE (ESO).
WE WILL BE AVOIDING THESE WITH A BIG BUY/SELL SPREAD IN FUTURE, LIKE THIS AT 7.7% YOU NEED A YEARS PROFIT TO TO BREAK EVEN.
NOTICED A SMALL RECOVERY IN LUCE, STILL HOLDING ESC WITH A LOSS, TOUCH AND GO WHETHER WE SELL, IF WE DO SELL IT WILL RECOVER!!! ANY FURTHER DOWNSIDE THEN WE WILL SELL