Member Info for Beachhouse

The way I understand it, the managers buy back shares to reduce the discount to nav, and sell them again to reduce the premium to nav, they started the buy backs when the share price was in the 600s and they are selling them at a good profit, any money they make belongs to us share holders at the end of the day. Surely that's a good thing isn't it, or am I not seeing correctly.

Something just caused the price to jump in the last few minutes

Just bought some more this morning, no saying how low it will go or for how long, but in my experience, things move quicker nowadays with the information superhighway and electronic trading. I think large investment trusts are a safe bet, and like most things they tend to go up in price over time, I will be buying more.

Investors who bought SMT in November 21 will be feeling it was a bad investment, but they were following the advice from pundits and newspaper articles at the time. This downturn doesn't even make the top five for SMT there have been worse, yet it has always gone on to make a new high, and usually it takes less than six years, we are three years in to this downturn, it's my largest holding, I'm not worried

What I do before buying shares is look at a historic chart of past performance and see if I had bought at one of the peaks how long would I have needed to wait after a downturn before it made a new high and I would be in profit, going back around fifty years the longest SMT took to make a new high was after the dot com crash when it took six years to make a new high. I know people will say you can't go by past performance, you will all know the feeling when you have bought shares and the price drops, but SMT has an upward bias, it has been making new highs for over a hundred years, over time most things go up in price, houses, cars and SMT.

I've always used cum fair nav, I did read somewhere that's the one to use.

Nice to see a new yearly high today

The way I see it, with listed shares the share price is based on the last trade, private equity is not actively traded so they say it is difficult to value, but by selling some of the holding you get a price per share that you can use to value the rest of the holding.

SMT, Elliot and us, we are all in this to make money, if they make money then so do we, they are professionals and I am a private investor, I have to trust that they know a lot more than I do about how these things work. I'm happy with the way things are going, as long as the world keeps turning and in a few months time we get interest rate cuts here and in the US then the upward trend should continue, Moderna might pick up later in the year, they have some good stuff coming through.

I've been reading many articles about Elliot, they seem to know what they are doing, they have bought over five percent of SMT the UK's largest investment trust, that's a significant investment and they will be expecting to make a good profit. One thing they mention is they think SMT have undervalued the private equity, that makes sense to me, over the past year the pundits have been negative about the private equity saying it is risky, hard to value and up to the thirty percent limit, it's possible SMT have undervalued it to keep below thirty percent, Elliot may have done their own valuations and think they should be higher. I'm happy how things are going, many investment trusts are trading at large discounts, but Elliot chose SMT, and they will have had good reason.

The impression I get is that Elliot think SMT are undervaluing the private holdings, so by selling some of the space x holding it creates a definite valuation for the remaining space x that they still hold, maybe Elliot know that if SMT do this for some of the other private equity as well it will give them definite valuations that can then effect the NAV.

SMT would be top of the list if it was near it's high like the three above it on the list, SMT would be almost double it's present value.

The NAV is rising nicely, the share price is cheap at the moment.

The sellers are selling to people (and automated trading programs) who think it's the right time to buy.

It's good to have a plan

Let's see what happens this year. When the FED or even BOE make the first interest rate cut, and one of the private companies ipo, which should happen this year, then some of the pundits and analysts who were telling us to sell in the low 600s will be advising us to buy SMT again. As for the world in general, I am hoping for peace to prevail, that benefits everyone.

Last year Tesla went down to around 100, then went up to 300, it's down to around 200 now, these kind of price swings are normal for the high growth companies that SMT invest in. NVDA and ASML are flying high at the moment, but they too have similar price swings. Wait for the stars to align and a higher percentage of the holdings will be flying high, then SMT will fly high again for a while, it's what it does, over and over and over again.

1200 is my next target, timescale depends on outside forces, but it will get there and beyond, I'm glad to be a holder right now.

New yearly high again today

SMT made a new yearly high today, the NAV is rising, the discount is narrowing, the price has broken out above a rising 50 day and 200 day moving average.