Member Info for theoldmansdoneit

According to Trustnet the yield is now 8.41% and the discount to NAV is 29%. Surely the SP can’t go any lower than this? Or can it?!

No, I’m as flummoxed as you! Obviously some drop is due to the rise in interest rates making any GCP borrowing at floating rates more expensive and making equity relatively less attractive as an investment, but the recent fall seems to me to be disproportionate.

Yield now >10% and according to Trustnet, the discount to NAV is 28.7%.

Clearly the big boys in the market have doubts that the dividend is sustainable at this level. It would be reassuring if the Directors could issue an RNS to reassure investors that there’s no reason they know of for this drop. Also not much in the way of Director share purchases other than a modest 20,000 by Alex Yew on 6 October. If they were such a bargain, surely they’d all be piling in. I’m rather nervous but certainly don’t intend to sell any at this price. Hopefully all bad news is priced in!

You’re right, the Hyundai investment is a great vote of confidence in what is a significant constituent of HGEN’s portfolio.

I see that on 6 October, the chairman, Arthur Copple bought 50,000 at 94 pence. That’s a decent vote of confidence. Surprised it’s not had any impact on the SP. Pretty much the whole market went up today (FTSE All Share index was up by 1.8%) but we went down 2%. Time to check MTU’s holdings!

“Of all the tomatoes we buy in the UK, British growers currently produce around a fifth – around 100,000 tonnes. During the summer, this goes up to around half the tomatoes bought. The rest are mostly imported from elsewhere in the world (some 400,000 tonnes).”

Source: https://www.britishtomatoes.co.uk/tomato-facts

Clearly growing tomatoes in the U.K. is viable.

Suthy, please could you explain the rationale for your conclusion? Why do you think they will be raising money when almost everything is rented out at good rates, the majority of which are index linked?

Disappointed that ASLI have again failed to increase the dividend despite their largely index linked income. Hopefully they are saving up for a bumper final dividend in Q4.

I couldn’t read the article due to the Telegraph’s firewall but found this article which is accessible to all

https://www.midyorks.nhs.uk/news/first-nhs-pilot-of-nasal-photodisinfection-for-the-prevention-of-postsurgical-infections-starts-at-mid-yorkshire-teaching-nhs-trust-2945/

Well the market has enjoyed today’s RNS even though it seems rather underwhelming to me. Hard to understand why the SP is still at such a large discount to NAV. Look forward to hearing the outcome of this strategic review “in due course” as they vaguely put it.

Just added up the cost of Iain Ross’s holdings and he’s spent almost £90k on them. However, considering how much the SP has fallen recently, if he’s not tempted to buy a lot more at these prices, then I don’t hold out much hope for the company. Just one deal would transform sentiment and the latest results still suggests that deals will follow over the next year. I do hope so - I’ve lost a shedload!

ASLI have today announced that the 1st dividend of this year will be 1.41 euros which is the same, in euro terms, as last year’s amount. Given that we apparently have 68% of rents inflation linked, our income should increase and so it’s disappointing that there hasn’t been even a tiny increase in dividends to acknowledge this. Once we see the effect of rent inflation feeding through to dividend inflation we should also see some SP inflation. Come on ASLI!

That's a decent vote of confidence which has encouraged me to add a few more to my holding.

This morning's RNS states that 1607 Capital Partners now have a notified holding of >5%. Just had a look at their background and they specialise in buying closed end investments that have a discount to NAV. I feel very reassured that these professional investors see value in ADIG. The current discount to NAV according to Trustnet is 27% which does seem to indicate there's a lot of value to be had here.

GCP, due to the significant discount to NAV, have today issued an RNS about their share buyback plans. While I’m pleased to hear this, it has perked up the share price on the very day that we receive our quarterly dividend. Given that many shareholders (me!) have automatic dividend reinvestment plans set up, this means I’ll be paying more and getting less shares. It would have been much better if they could have delayed this announcement by a day or two!

TerryMC, please could you let us know your motivation for your posts. Is it a selfless act because you are worried that people you don’t know might lose some money? Or are you relentlessly posting a negative view to try to drive the price down for your own selfish ends?

Well there do appear to be quite a few chunky sales of 50,000 or so this morning, hence the further strengthening of the SP. Hopefully a sign of good things to come!

I see that our executive Chairman Iain Ross has bought 100,000 shares today. It only amounts to c. £10,000 so not an overwhelming vote of confidence. If he’d bought a million I’d be more reassured. Still, if we could get a commercial deal or two over the line, it could easily be a ten bagger for him from these lowly levels.

In today's RNS, ADIG announced that their unaudited Portfolio Holding Summary as at 31 December 2022, is now available on the company's website, within "Literature Library" under the Key Documents section. Assets are valued on a fair value basis using bid prices, or, if more appropriate, a last trade basis.
Just had a quick look at this and was surprised to see that they have 626 assets listed, albeit 6 of them with 0 value. I like the fact that they diversify (it certainly lives up to the fund name!) but that does seem a heck of a lot. In my humble opinion, that's too many to be able to properly focus on. For example they hold £2,774 of LGEN shares.
What do others think?

Unlucky, but as you say, they still look good value at 75. I thought they were looking good value some months back when I was buying them at over a quid!

In today’s Sunday Times, Oliver Shah tips SEGRO as the ‘only listed player of real scale’ in the logistics property sector, arguing that ‘property companies have been oversold in general’ and that with a 37% discount to assets, ‘SEGRO is looking very cheap in particular’.
By my calculations, with an SP of 68.5 and the latest update giving a NAV of 114.1, ASLI are trading at a 40% discount to NAV.