Member Info for oldandtired

Whether you think that the discount here provides a buying opportunity depends on your assumptions. The zdp shares have a 7% nominal annual yield which is a pretty high hurdle to overcome for a trust which intends to buy small value based companies. However, if you think that British small companies are cheap at the moment, this could be a very good investment indeed given the level of gearing. I don't like the bid/offer spread at the moment but if the spread narrows and liquidity improves, this might be worth a punt.

Since the trust has a planned life of only seven years and given the small size of the trust, I don't anticipate the company buying back shares. The existence of the zdp shares would mean any share buyback would further increase gearing. The discount looks odd since the discount will be eliminated at the end of the seven year period.

The shares are now at a 7 year low. The Chinese stock market is now incredibly cheap and looks fantastic value. The fall appears to be caused by awful sentiment, not fundamentals. A buy for the brave.

The trading update looks pretty good. With four more outlets opening in the next year and costs under tight control, profits could rise sharply from here on.

I used the some of the proceeds from the Fidelity Emerging Markets tender offer to buy more shares here. The discount has actually increased making the shares even more attractive. Sometimes the stock market behaves irrationally when pricing shares and I think that this is one of those times. In a couple of years, I expect these shares to be much higher and trading at a lower discount and people will be wondering why they didn't buy at this bargain price.

The discount here is now over 16%. This is out of alignment with other Asian small company trusts. Asian shares look good value compared to shares in the western world and Asian small companies look very good value given their growth prospects.

60% of management fees and finance costs are charged to capital, not income. Given the gearing of 8%, a 5% yield on nav does look as if it is covered by income.

The managers have said that the dividend yield is covered by the income received from their investments. I see the dividend yield as a sign that Asian shares are too cheap. Remember that the dividend yield is calculated on the share price which is at a large discount to nav.

The discount here is much bigger than comparable investment trusts. I think that Asian shares will outperform shares in the western world over the next few years after a long spell of underperformance. Asian shares look much better value and have better growth prospects.

It looks as if there is going to be a tender offer for up to 15% of the company at nav less 2%. This should certainly support the share price.

The costs associated with the listing were £13m. The seasonality of the business means that 60% of revenue occurs in the second half. After allowing for these factors, I expect the underlying pre-tax profit for the full year will be about £100m. With the market cap of less than £700m, the shares look far too low for a growth company.

The half year results are due next Wednesday. This will allow credible estimates for annual earnings to be calculated. The current estimates seem to be little more than guesses.

Please don't contaminate this thread with charting drivel. Most studies show that technical analysis doesn't work. Investors who use it tend to underperform because they overtrade which increases their costs

I have started buying shares here because of the discount. I regard a discount of over 10% here as a temporary aberration which will eventually be corrected. Of course, "eventually" might take a while, but I am prepared to be patient. Bankers has a very good long term record and is run quite conservatively which I like.

Liberum has now tipped CAB payments. It looks as if word is getting around.

Krull, I like your optimism. The amazing thing is that you could be right.

You can see batches of reported trades from 11 am onwards today. They look very odd. A lot of the trades are for very similar numbers of shares.

The published trades are misleading. Most days, batches of trades appear with the same execution time. So the number of trades can jump suddenly from very small numbers. There is usually a big batch late on every day. These trades all seem to be labelled automated trades. I am not completely sure what causes this. It may be an artifact of how CABP trades are reported by trading systems.

Krull, I beat your post by 4 minutes. Great minds think alike.

CABP will be promoted to the ft250 index at the next rebalancing of the ft indices. Since there are a number of ft250 trackers, this will force some buying of CABP shares.