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Oh dear, Resimac fell about 10% to A$ 1.05 yesterday building on a recent downtrend, I don't know why. As this will affect the NAV here significantly I have speedily got fully out again at a small loss. It looks like I am not the only one selling today with no buyers apparent.
OK, I'm back in modestly as NAV seems to be improving now 263.33. Of course if no one buys in here the discount will just increase. Company share buybacks looks like a forlorn hope.
Some ghastly looking falls in portfolio companies in May revealed in the monthly factsheet. Also revealed that UIL and others are going to take over Somers, I don't know if that is a good move or not given the existing relationship between the companies. In the circumstances I am now fully out, as there appears to be absolutely no buyers around I can't see the share price rising, at least it hasn't fallen with the market over the last few days as aside from me there are almost no sellers recently either.
NAV for 10/6 down to 287p and Resimac fallen a further 7.25% today in Australia so I expect a lower NAV to be reported tomorrow here. It is looking like UIL could manage to have closed the discount to NAV here soon to near the target of 20% not through any of their own efforts but through the poor recent performance of the fund.
February Factsheet shows an annual fall in share price of 9.1% NAV fall of 3.2% as against a rise in benchmark FTSE All share of 16% however the fund has significantly outperformed in earlier years. I don't know how relevant the benchmark is given the significant investments in Australia and Bermuda. Also the NAV is at 34.1% discount when the stated aim is to get to a discount of just 20% and there is little movement in fund holdings despite many being listed companies so are presumably liquid enough. Just saying that seems to be the nature of the beast.
3 recent share purchases by the company aggregate 64,000 shares done little to move the share price or close the wide spread quoted by the market. Still I hope for more purchases which must move the price eventually, as there is very little selling by investors.
Resimac has announced a share buyback programme effective from 29 December as they think their share price is too low. Resimac shares up 10% today. This should be good for UIL as it is a big readthrough underlining holding
Correction: Resimac is a core holding of Somers which is a core holding of UIL. Apologies to any reader who was misled.
Resimac not Resume (autocorrect).
Resume Group Ltd ASX:RMC finance company and big core holding (Duncan Saville NED) seems to have fallen by 2/5ths in the last 6 months dragging UIL NAV down with it, don't know why as at a glance finacials look good and it represents a useful diversification to my portfolio on a read through basis. But I have been too overweight on this stock and I am rapidly losing patience so have just sold down to a more sensible level.
Edison research note doesn't appear to have attracted any buyers but it looks like there were big sellers on Friday. Just my own aide memoire stating the obvious in the absence of any other discussion on this board.
Two recent RNS show Duncan Saville responsible for a purchase of 25K shares and the company has sold into the market 800K 2026 ZDP shares. Could something be about to happen? I guess that I will hold on a bit further.
Still at 30%+ discount to NAV and little movement in share price, not much in the way of recent company share buybacks either. All looking sleepy here. should I continue to hold or could I get more action elsewhere?
Good uplift in NAV reported today together with the company continuing to buy back and cancel shares should result in the share price still climbing at a strong rate. Still trading at more than a 30% discount which is crazy compared to the majority of Investment Trusts.
As I said a month ago this is great value even though it has risen from 210p then to 242p today. With a net asset value of over 350p I think the gap will continue to close giving lots of scope for a rise in the share price. Keep buying. I have a large holding and am confident in getting good returns.
OK: so we've had a great start to the year (+25%) but I'll admit that, looking at the wider market, I just don't see what drives this day-to-day. I appreciate this is the utility sector & is counter-cyclical, but I find myself completely unable to either predict, or even retrospectively explain the moves in the share price.
Is anyone able to explain what's going on? TIA.
60% gearing is a concern, as is 1 year: -12.5% but 3 year 142.5% is sector leading (AIC). Z shares look interesting, certainly worth a look. A bit cautious having been burnt by TGS reducing dividend for no valid reason.
With a net asset value of 355p this has to be great value trading at 210p. Dividend paid as well. Lots of scope for a big rise.
With yet another share purchase, could this comapny be taken private?
Purchased another 100,000 shares.
Via various funds it looks like he owns more than 70% of available shares.
A restructuring of existing entities that indirectly hold ordinary shares in the Issuer has resulted in Mr Saville now having an interest in the following shares:
Holder Shares %
General Provincial Life Pension Fund Limited 56,001,533 62.58%
Permanent Mutual Limited 6,629,977 7.41%
Azure Limited 217,061 0.24%
The Saville Foundation* 93,750 0.10%
* As Trustee
Great divi's
post here
And it continues...
Has anybody seen a reason for the fall in the last two trading days? Especially last Friday.
Utilico Emerging Markets, which invests predominantly in infrastructure, utility and related sectors, said Thursday that the investment environment remains challenging and is likely to remain so, but declared a third quarterly dividend of 1.525p per share, up from 1.375p the previous quarter. In the final quarter of 2012 market confidence remained weak, with attention fixed on the US, as the "Fiscal Cliff" deadline approached. During the period, the group's net asset value cum income total return was up 4.3%, which it described as a solid performance broadly inline with the MSCI Emerging Markets Total Return Index (Sterling adjusted), which was up 4.9%. UEM's gross assets less current liabilities (excluding debt) at the beginning of the period were £387.0m and increased by £4.9m to £391.9m at the end of December. Ordinary shareholders' funds increased by £12.7m to £382.8m. During the quarter the company reduced its bank debt from £12.2m to £9.1m. The bank debt was drawn £5.0m in sterling and £4.1m in euros. In its interim management statement it said: "The investment environment remains challenging and is likely to remain so. A great deal of uncertainty still surrounds the US and the Eurozone. However, UEM and emerging markets generally continue to outpace the major developed markets in terms of growth and we are positive on the portfolio's long term prospects."