I do not regret selling ASL but made a big blunder buying VED. Now down 31% on what I paid on 2 Mar, curse Indian tax authorities. Your link has some relevance if Indian tax authority likened to a corrupt sheriff. Wish I waited until today to buy VED :-(
It is hard and unusual to be able to make 30% CG in under a month but surprisingly easy to lose 30%.
Was that wise, m8? Albanese has a job somewhere in VED, don't he? Giving some spurious sense of solidity to that Indian feller? I remember Albanese when he was in the C suite at RIO, and the feller had an unerring ability to destroy shareholder value at an alarming rate.
I hope you don't end up like Chevy Chase in American Vacation after his encounter with the sheriff!
If SP gets to around £11, my break-even price, I am going to sell. I am not impressed with their stock selection. I feel I could do better picking my own. About 6 smaller companies would give me enough spread to reduce risk and could avoid a load of dogs that ASL have.
Before I bought ASL SP was rising nicely. Bought in Jan this year and since the end of Feb SP has drifted down. Now sitting on a small loss of 1%. Thinking there are better homes for my cash. I looked at the top 20 companies they invest in and it looks like they just buy all smaller companies instead of concentrating on better companies. I suppose it is tracking an index that is not doing well.
Obviously my timing was bad but I think I will sell. Hope it goes up a bit so I can break even.
SP has risen about 6% since Wed when a no vote from Scotland looked likely.
I wonder if discount is in part because of anticipated rise in interest rates. Smaller companies are more dependant on cost of loans than large ones and tend to under perform when interest rates go up.
Looking at top ten companies they invest in. JD Sports, FirstGroup, RPC Group, e2v technologies, Spirit Pub Company and Flybe Group are under performing FTSE 100.
A month after I bought ASL at the end of January SP has under performed. Before I bought was doing great.
Scottish situation may have had an effect, though, as the discount is now over 10%, so I think, still cautious, that a further top up would be in order. If Madame hasn't spent it all on handbags. Sentiment has moved against smaller companies, for reasons given below. Of course in the long term they should come good. However an oil tanker as big as this one may take a little time to turn round.
From an investment perspective, I wouldn't worry too much either way about the outcome of the Scottish Independence vote. All investment companies based in Scotland seem to be taking steps to re-register and(or) co-register in England. Far too much of their customer base is south of the border for them to risk fall-out by being in the wrong legal domicile!
It was pointed out in this weekends FT that there is added financial risk attached to companies registered in Scotland. This may weaken SP up to independence vote. I think they will stay in the union but it is certainly not a given.
SP of ASL has been volatile recently perhaps influenced by data from USA showing a big fall in value of smaller cap companies compared with S&P 500 driven by rate rise fears, Smaller companies often need to borrow to grow whereas a lot of larger companies do not need to borrow and anyway can raise capital more easily on the money market, such as bond issues.
Since 28 Feb to yesterdays (Tue) close SP has fallen 11.6%. I assume driven down by fall in NAV. Longer term it looks good so perhaps now a good buying opportunity. On the other hand kakram could be right with his TA. I think on balance as it is an IT with broad spread it will revert to mean and so a buy. Perhaps it would be worth looking at the shares in their largest holdings to see if there is a serious problem with any of them.
fyi I'm buying this for Mrs Scashtin, because it is favourite small cap trust of Charles Stanley, and she has no small cap exposure and I think small caps are a good place to be in the long term. Here I am hoping for steadt growth, a bit of yield and no fireworks or I'm in trouble! However I think the whole market is pretty high so fear and greed pretty even for me at this time, therefore putting in about 1/3 of final intended investment.
I have held this and Aberforth Geared Income for about two years and as the charts would show they have both done very well. Geared Income is the better of the two with over 4% dividend and 12% discount. As the name suggests it has higher gearing(borrowings) however, Trustnet web site rates it as lower risk as well.
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