Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
To generate an attractive total return for shareholders consisting of dividend income and capital growth through investments in specialty lending opportunities.
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Well 31st March approaching and a big fall today (hope it’s not related to SVB) so no way discount is going to average 5%. So it’s a 25% exit option (which they’ve indicated won’t work (why offer it then?) or Run Down so imagine we will hear before June and it will be agreed at AGM
Bought again today 77p
Just bought at 79p. A product of decent day volatility. Very good price. But need to stop buying.
The one fintech I watch which appear to be comparable to the Company’s in which vpc are invested in has been going up up up.
Have to keep resetting alerts.
International personal finance
Decent fall today picked up a few on a limit order.
Should expect an increase in dividends soon.
Lending at 10.5% in December 21 now at 13.8%
May Start paying it as a special dividend.
From AIC
“According to the October factsheet, 64% of assets were in debt, with 7% in equity, 16% in preferred stock, 3% in warrants, and 9% in convertible debt. The weighted average remaining life on loans in the portfolio was 17.6 months.”
Dividend unchanged, some good news here for once.
Agree and another divi due next month
Hopefully we've not heard anything because they've changed their minds.
I would not be surprised if it was delayed until the AGM in June. After all, this would have been when they would have had to propose the "25% exit opportunity". Expect there's a lot of work going on about the wind down strategy and implications that needs to be concluded before circulating to investors so June seems reasonable.
Prospect of improving economic outlook as the year progresses should be a positive for disposal of the unlisted holdings. I'm sure most are happy for the income until then.
I haven’t seen any indication of a timeline for the wind down GM and vote. A circular was promised in the December release, what’s the hold up?
Share price Moving in the right direction even if the NAV isn't.
"As at 31 December 2022, the unaudited estimated NAV (Cum Income) per Ordinary Share (ISIN GB00BVG6X439) was 98.19 pence"
No move in the share price?
Have been watching a share of a fintech in what I consider a very similar area. Namely International personal finance. A big recovery in share price over the last month without any news.
Good chance of a recovery in NAV moving forward. Mind as we are looking at long old wind up (an assumption based on past wind ups) then there was always a good chance of it happening.
Next nav announcement should hopefully show an improvement.
Still no share price rise. Trading roughly below the price at which the wind up was announced. Although the there's been no vote yet.
Tipped in the Telegraph's Questor column today. Some consider this the 'kiss of death' but might explain all the buying this morning.
https://www.telegraph.co.uk/investing/shares/new-holding-yields-10pc-offers-chance-capital-gains/
This new holding yields 10pc – and it offers the chance of capital gains
Questor Income Portfolio: we’ll deploy the proceeds of a matured retail bond into a specialised fund that is narrowing its discount
The fund is VPC Specialty Lending, tipped in our “trust bargains” format in October last year. It makes loans to businesses, mostly American, which typically lend the money on to their own customers. While that may sound risky, it secures its loans against its borrowers’ assets, limits the amount it lends relative to the value of its collateral and scrutinises its borrowers carefully on a continuous basis.
The yield was more than 10pc when we tipped the fund, although a slight rise in the shares since then has trimmed it marginally. It is still more than we would get from any retail bond of tolerable risk, although we should acknowledge that the fund too poses risks, such as that borrowers may default if interest rates continue to rise or if America experiences a serious recession.
There’s more to the story, however. The trust has proposed that it be wound up, following pressure from activist investors.
This should not only limit the scope for damage should there be a deep recession, as maturing loans would not be reinvested, but offer the chance of capital gains too. This is because the trust currently trades at a steep discount to its net asset value; if the managers can realise their assets at or close to book value and organise the wind-up without incurring undue cost, investors should receive back a sum much closer to NAV, even if they have to wait for it.
We will be happy to receive the generous yield for as long as the trust remains in business.
I'm holding for now, really frustrated at the decision to wind this up. Good steady dividend payer going along nicely, then some greedy II comes in & kills the golden goose. Happening all too often now because the UK market is undervalued more or less across the board. If this had been based stateside it would have been valued at £1+ & everyone would have been happy. Hey ho, waiting to see how it plays out now.
Good discussion and info already on this thread - thanks everyone. I too am pondering course of action.
Simplisticly, a potential 25% capital gain if book value of assets realised (81p share price --> 101p nav).
I'd expect loans to realise at close to book value. Imponderable is the unlisted stock though, like Broomtree, think sentiment has turned here and we may see NAV rising as a result.
However, need to assess the time frame this will play-out over and the cashflow:
- What dividends and when
- how they'll tail off as loans run down
- how long will it take to shift the unlisted stock
- inflation outlook over next 2-3 years
I feel there are too many unknowns at this stage to make an informed decision. Will wait to see what transpires from the GM and subsequent info from the trust. Preference would be for VPC to continue.
Likewise I bought for income and it has been great at maintaining the divi through many difficulties. As to what to do? It’s on a nearly 20% discount so in theory if it could be run off at net then there’s a clear 20% gain. The loan book is circa 67% and fairly short term (less than 5 years) so I would see that being run off/sold at pretty close to net. The grey area is the 33% unlisted stocks, very much out of favour this last year or so but I do detect a change in that with trusts with similar holdings making steady improvement - so I’m hoping for the divi but will keep an eye on discount and monitor the unlisted side
This was a dividend/income hold for me. Can’t work out whether to hold, add or sell now. What are others views?
Bakkt up 94% will help, still some way to go though
From today's rns
" The average interest rate on the portfolio was 13.9%, up from 13.3% in October 2022"
Interest rate in December 21 was 10.5%
Terrym1
Price is definitely going the wrong way at the moment.
Not sure about pollen it is on huge discount though. It might end up in wind down.
Biopharma looks like good option. Regular special dividends as well.
Coming to the end of a similar process for RDL which is now private, almost all money returned with a reasonable amount hopefully still to come.
The process has been going on for about 3 years but has been slowed down by covid.
If all goes well I would expect VSL run down to return a reasonable profit but would prefer to if they kept going with good dividends.
Was also in PSSL which got taken over at a decent profit, the problem is the markets undervalue these companies so are ripe for takeover or wind down, I think only Honeycomb (now Pollen) will be left.