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We sold this share at around £1900 some time last year when it traded at a premium. May be time to come back in, especially if it drops to the £900 or less range. We only buy stocks that are very low or out of favour. Really starting to look interesting.
We are well in to FFWD an I.T. that costs 7.4p and has a NAV of 12p. However with some of its holdings increasing a lot, the new NAV may be around 24p One of those shares which has very few followers, but its holdings are very very interesting, with block train and cannabis being involved along with others waiting to shoot up. STAY AWAY if you have a nervous disposition and prefer safety rather than possible big profits
Now at a small discount to NAV which stood at 1,085 last week and will probably be higher now. NAV increased by 32.4% over 2019 but the share price has gone down slightly. The premium fluctuates wildly because investors cannot work out what LTL is worth. I agree with TalygarnTom as to the reasons for the fall and would also add that the performance of the funds haven't been quite as good recently because of the relative underperformance of so called defensive stocks.
I do however think this is likely to be the floor as Nick Train has always said he wants to increase his stake but won't whilst there is a premium to NAV as this would be implicitly stating he disagreed with the valuation method for LTL which he said he doesn't.
In the long run this will come good again. Nick Train is one of the best investors out there and this fund holds a 25% stake in his management company. How many opportunities are there to own a piece of something like that? I am sure that in a couple of years time people will look back at this and wish we had taken advantage of a rare moment when you could buy in for zero premium.
I'm holding.
Now this is really seriously not funny Its down 7.5 today.
LTI has just got so pants.
A lot of fund’s saw significant withdrawals, up to 10%, from June onwards last year spooked by a combination of Woodford fallout and Brexit jitters. The off the back of the initial Woodford reports Train was hit with liquidity concerns. Personally, I think it’s all a blip and as long as the NAV continues to perform this trust is as good as any. https://www.trustnet.com/news/7461001/nick-train-brushes-off-liquidity-concerns-after-ratings-downgrade
In 2019 Funds under Management grew 41% to £21.9 billion. Not bad.
Does anyone know if Lindsell Train are taking new money in or are their funds seeing redemptions? Just want to know if the business is growing or shrinking
Well, I sort of meant not way above NAV.
A true price?.
That also depends on how popular the funds are?
Well hargrieves took lti off the reccommended list because lti holds a small slice of hargrieves who, I am sure would not want to get into further misselling trouble after the woodford scandal. Perhaps now lti has found its true price level and we can grow steadily from here. I hope so anyway.
Oh dear, what's happening here?.
Ah, I see now. Thanks. This is seriously not good.
Below net asset value is a first for this one. Nick Train said he would start buying it if that ever happened.
It seems to be under pressure every day. I am down and take today - down 6%.
Its lost its way for sure.
Any one know why LTI is under pressure today? can't see any news out there.
We trade ITs a lot but do generally avoid those few with a premium. With a discount they give you a better yield. We do acknowledge that some always trade at a premium and this did hit around the £19 mark so if it drops to £10 or £11 with the same premium it may be worth buying as some of its holdings may be out of favour, therefore worth buying. We go for stocks / sectors out of favour as they usually come back and often give a decent dividend in between.
4% premium and 2.4% yield, this is now looking like a sensible investment
7% premium now! I’ve never seen it so low. Topped up. Shame about my paper loss though......
I feel confident I will be in profit eventually though. NAV has gone up over the last couple of months
when will the pain end !
The long term success of this Trust will be determined by the success of the funds management by Lindsell Train Limited which now represents 50% of NAV. If the funds perform well more people will invest in them and therefore the earnings of LTL will grow. In 2019 Lindsell Train Global, its biggest fund, was the 2nd most popular fund on the Interactive Investor platform. Not surprising given its annual return is 20% over 5 years. Not even Fundsmith beats that.
Nav is frequently updated. Present situation premium 13%. I'd sooner trust Nick and co at a premium than most others at a discount.
I'd avoid. Spread is nearing 4% and no one has a clue how much it's really worth.
Ah, that could explain the big price drop again today. I would be surprised if it keeps its morningstar rating at this rate. My loss is hurting.
So looking at the half year report yesterday I thought it interesting to look at the investment our Trust has in Lindsell Train Limited (LTL) as this now represent 50.87% of NAV. LTL made a PAT of £28mil on Turnover of £50.5mil. This is a growth of 43% in Turnover and 47% in PAT. Our 25% share of LTL was valued at £109m mil for the purposes of calculating NAV. This works out at a PE of 7.8. This is incredible low for a company growing by 43% and explains why there is a such a large premium on NAV. How much is LTL worth? I have no idea.
Ah, now I see. Thank you OliG. I always have a rant at the broker when they make excuses. But not this time.
Is it my imagination or has performance declined since the July selloff? I guess there is high correlation with FTSE and perhaps some seasonal factors at play.
But more generally, if say a global IT has no correlation with the FTSE 100 but there happens to be a general selloff would I be correct to assume that even global IT's do not really provide exposure to other markets as these are ultimately traded on LSE...