Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
To realise value through exiting the investments over time, the Company invests in early (but not seed) or later stage investments in unquoted fintech businesses.
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Etotheipi, don't worry too much about it. Fintech is looking good this for 20% annualised for a year or two. This has not reached my buy price so I am leaving this forum for a while as I don't think I will get my price.
Thanks, clearly I should have paid a bit more attention to the RNS.
The fund raise was in the results RNS on 7th that they would raise money. Raising money to invest in new companies is great but it will always be done around the NAV price. The company never provided regular NAV updates and the share price simply got way ahead of its self. On the 7th investors knew this, hence they excited for the door.
I should declare that I don't hold here but I do hold CHRY (and used to own GROW and HGT). But I would buy at the right price.
Mr Fibbles, it turns out the offer price is going to be 135.5p so I've taken a bit of a hit. May I ask, why was it obvious they were going to announce a share issue today?
Yes Alan no point selling now as it is clear from the share price that the placing will be cr 142p
Guidence that has been provided is for the NAV to be released in June.
This is a very young IT and although it has quite an impressive record since launch, it is not yet enough to smooth out wild variance in market value. Sure, yesterdays drop was painful, but, I would contend that it is consistent with recently listed equities in a relatively new nd unknown sector.
Happy to hold and await documents showing the fundraise which will be considered with the benefit of the declared results
The drop was predictable and the fault is with AUGM bod for not releasing a NAV. AUGM wanted to raise money and this is sensible but as we did not know the NAV the share price would be heading that way when the placing is announced.
Alas_Smith, interesting overview of ITs. I was shocked by yesterday's 7% drop. Maybe a delayed reaction to the rns about share issuance but I thought that was on Tuesday when I topped up. Odd that a big drop would occur a few days before the annual results.
Today AUGM has punted the notion to raise cash from shareholders. We know that the shares have risen 16% this year so the expectation is for decent numbers presented in the financial statements. Institutional investors might or might not participate in the fund raising, it depends on how good the numbers are and the pricing for succesful admittance of new shares.
Usually new shares are admitted at a discount to the prevailing SP, so it is actually to advantage if the SP does not get carried away in the run up to a fundraising placing. I have sufficient cash to be able to participate to a limited extent, if, for no other reason than to avoid dilution.
If the results are pedestrian, for me there is a compelling argument to sell. I’d prefer to participate in a fundraising especially if the terms are attractive but until there is news on which to base a decision, I will hold and await documents.
I’ve been thinking about the question of “buying the dip” a little more so here goes. My original answer was intended to address from a common sense perspective whether shares in an investment trust are expensive or cheap when compared with the assets on which valuation is secured.
The share price of this IT have fallen since your question was published but it might not mean that the valuation of the IT relative to the NAV has fallen. It might have actually risen. For this, or any other IT, the current NAV should be compared with historic average NAV to determine if a divergence exists. A change of manager might, even with unchanged underlying assets, cause a major shift from discount to premium or vice versa.
Your question is thus very sophisticated and intelligent.
I am not qualified to give financial advice but investment trusts (IT) have different rules from open ended funds. For a start shares are bought and sold much like equities, next the IT is able to lever assets can go long or short etc.
The assets are published from time to time so that not only are they open and verifiable, but investors can see how the fund moves within assets. Most assets are publically quoted and thus have known values. These form the Nett Asset Value (NAV) for the IT. This figure is usually published daily and may show if the IT is trading at a discount or premium to the NAV.
If at a premium, it might reflect the ability of management of the IT to grow the IT, but at a discount, the potential illiquidity of the assets. Where the discount is greater or at a higher premium than is typical, focus might be given for the cause which, in turn, might help in any investment decision.
I hope this provides a little flesh from which to begin to understand whether this IT should feature in your portfolio. It does feature in mine, though my purchase was made last year. It represents about 1.6% portfolio though at the time was 2.5%. Not, because it was a poor choice, but because other holdings have performed very well. I do not like to have any holding representing more than 4.5% of wealth so tend to sell the turgid holdings and re-invest the proceeds. More often than not it means selling 3 holdings, buying 2 and reinvesting any cash thrown off as dividends. I am currently sitting on under 1% cash having transferred some of the remaining holdings from my dealing account to ISA accounts for self and wife.
Noob question but this will dip won't it? I wanted to invest here but the share price seems to only rise and I can't work out when to "buy the dip"