If you would like to ask our webinar guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund a question please submit them here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
FWIW, I am extremely bullish and increased my risk last November when it became clear there was to be a change in political leadership in USA.
Why, you might ask? There is an awful lot that can go right and it started with the announcement of viable vaccine, then Brexit out of the way, the inauguration of a US President more comfortable with "traditional" diplomacy, rollout of vaccine(s) and the broad pathway for a return to a more normal way of life, without masks and able to travel.
Coupled with this is the HUGE amount of money that UK, Europe and US are chucking into markets to return their deliberately trashed economies to prosperity. And although bond yields increased a tiny amount last week to send some scurrying to their wet nurses, that wall of money is not going to cause rampant inflation (well, not just yet).
Sure, once lockdown is lifted for all accross UK and Europe it will encourage some spending and compared with a coiled spring being released. But coiled springs might kick start things off, but they tend to return to stability. The relief will be short lived as the reality of redundancy will emerge.
I am not a fan of continuing the furlough scheme without good cause. I am very sympathetic to those businesses that are prevented from re-opening and would continue the furlough scheme for a full 6 weeks after they are permitted to re-open. The country is rich and can pay for the damage that it is done over a decade or more.
With any luck we will have a realistic budget tomorrow, though I fear that the ground will be prepared for belt tightening in later years. Perhaps the cap removed on NI for instance, the scrapping of Stamp Duty as a land tax and an increase in Stamp Duty on bargains from 0.5% to 0.75% would not be unreasonable. I would also extend it to cover all bargains on the LSE or its junior market, AIM.
Clear that reform to business rates is needed - a turnover tax, fledgling businesses (1st year), pay nil, £100, 2nd year and £350 in year 3. Micro-entities, regardless of the industry (under £500,000) pay £500, tiny businesses (£500,001 to £5m), £500 per £500,000 increment, medium businesses £5m-£100m incremental £1,500 per £1m and large business 1% turnover.
I've just plucked these number from the ether without any serious analysis. Emphasis needs to be given to small startups, especially those consequential on pandemic.
Hi
I reduced my holding in BG US and bought into this friday obviously delighted with today’s result and in for the longer term
Just wondering how people saw the next few months going ?
I am not a chartist by any stretch of the imagination, but the share price has a habit of putting in a decent rise off the 50 day moving average. That happenned in late December, Early Feb and again today (ish). My short term target is 960p.
FWIW, my purchase today for one of my sons is showing as a sell.
Yeah new share issue and panic selling due to Bitcoin madness and inflation fears. Emerging markets are still a safe bet this year. This will bounce back quickly, great opportunity to buy the dip
Something to do with the issue of new shares?
We've been getting clubbed like Nancy Kerrigan's knee for about a week now, but down 8.5% today????
WTF's going on?
Yes, SMT is a behemoth now, you picked the right time to get in. All top ups now into PHI for pure value growth, some excellent holdings like Sea Ltd. I noticed more holdings now in some miners to pick up on Commodity and infustructure surges in the emerging markets.
I too am in both but only 18 months in smt and 2 months in phi. Percentage wise, I reckon a larger increase with phi over the next few years.
Thought I'd give PHI a bump. I've been fortunate to have been in PHI, alongside SMT since the beginning, long wait but bearing fruit now. Excellently managed and some real gems in its holdings. With Emerging Markets being big this year, anyone for over 10 by December?
So why was the equity issue price (as stated in the RNS) significantly higher than the SP on several occasions in December?
I notice this isn’t the case in January btw.
Noone is going to buy shares ABOVE the market price,that doesnt make sense.But buying above NAV does make sense if there is a premium which might be sustainable.It s good for the company because its the only way to increase there portfolio
Yes, the RNS is retrospective but you’re still right that they are being issued at a premium to the price on that day. I’m learning as I go here, but I think the way it might work is that certain brokers will be used by PHI to offer the new shares to current investors, whether these are institutions or high-net worth individuals. They might be willing to pay more than the SP simply to ensure they don’t see a significant dilution to their % holding. The rest of us are excluded it seems, but we can judge whether the investment still makes sense according to our own objectives.
OK, got it now. It,s the time of the rns that.s confusing me. I assumed the shares were being offered at that time for sale the following day, whereas they had already been offered and presumably sold earlier on the day of announcement.
Happy now I understand it because this is one of my largest holdings and I needed to be clear.
That's as I see it Reckoner. Thanks for your post.
The only query I have is saying "sold" or is it "offered" at since the initial 3 tranches were priced well over that days, and the days since, market prices. Have they been sold and cash received or are they laying there awaiting sale when and if the market price catches up
The shares are sold at a premium to NAV, not to current SP. As the SP was at a substantial premium to NAV prior to the announcement of the prospectus, this premium has now reduced significantly, thereby also reducing peoples’ holdings last week by 12%. And there will be continued pressure to prevent the SP from getting very far from NAV again as more shares are issued over the coming year. And it is dilution as the company themselves have stated.
As long as they issue new shares at a premium to NAV, and the underlying assets - i.e. the investments themselves - perform well, I guess it should be ok. But it will take a little while to recover that 12% drop.
But the company gets cash for it and the cash is more than the share value because they are sold at a premium so shareholders are better off in total.Simple maths
I suppose when they say dilution they are referring to the % holding you have in the trust. When you say it, you must mean the value of the holding.
Liitlened, the prospectus itself says it will be a 50% dilution if you don’t participate in the share issuance programme.
So are you saying they have investors, market makers or whoever lined to to buy these extra shares for cash, creating a cash pile for future investment,as opposed to them buying existing shares on the open market which would not result in anymore cash for the managers to use?
Just trying to understand how it works.Who pays the cash, it's not a placing or rights issue?
In fact shares can only be issued at a premium to net asset value so it is the opposite of dilution so is to the advantage of current shareholders.
It brings in more cash for the company to invest.They are issued at market price so no dilution
I missed the RNS when it came out last Friday but have since read the share issue prospectus on the Baillie Gifford website. Can’t see any benefit to holding as I’m not intending to be in this for 5 years or more. Had a good run with PHI this year. Just disappointed that such a large share issue is underway. Might be my ignorance of how Investment Trusts work, but a dilution of 50% with the doubling of shares over the coming year is too much for me.
I'm still not following the reason for "issue of equity" benefiting existing shareholders. Surely it's just dilution, so how does that benefit?
Check the date when I posted this! At that time it was not doing well