Hargreaves give a discount of about 19%, which seems to offer value. Also, a couple of big boys bought in a short while ago if I remember correctly. Another good sign. However, didn't management state that they could not see anything worth investing in at present? The fact that they are not prepared to put money in unless they think it worth their while is also a good sign. However, how long will we have to wait until they think they do? And what about the dividend? I'm looking for a bit more clarity here.
The optimum words are exactly "does any body know " after the banking debacle of RBS, lloyds and recently Carillion, does anyone really know whats going on behind a balance sheet, i bought in all the latter in good faith, as a sound longer term buy, just like ELTA, if your judgement is made like mine on the clouded evaluation of possibly deceitful accounts, then basically hard luck and try a Zebras tail, some other more irrational method of deciding what to buy, as accounts are not necessarily the safest route. regards
I've just bought into ELTA on the basis i see more not on offer than is actually being put out as information from the company, there is a good margin against asset value to share price and SIGB still hold a large number of shares , a good indication of a substantial amount being left on the books as far as value goes or else they would have sold out, add to that the opportunity to be involved in a potentially growth company when they relinquish trust status, and you might have a reason to buy.
Although i consider the portfolio overweight in certain areas generally it offers good value for the future in my opinion. i have every intention of increasing my holding and missed that opportunity with the recent falls
I sold all my holdings a while back at 9.41 and now have the dividend of £9.14 too waiting for the share price to fall lower before buying everything back. Is that a decent strategy ? Is the discount at current price of £9.20 REALLY giving a discount to NAV of 53%. Seems too good to be true to be able to buy at 53% discount
AND a yield of over 11%
Any advice as to the truth would be greatly appreciated Thank you for any insights.
With the management saying they do not think anything is worth investing in at present, and hence the lack of news here of any kind, I can see this shareprice drifting further. Worth watching and getting in if they become cheap.
Recent news shows that both Witan Investment Trust and Prudential have been buying recently. Their research will have been serious and professional. This tends to encourage me and I have bought today.
Today's report to the market is short on data and detail but also provides a note of optimism. The shares also offer a useful bit of variety to a portfolio.
I intend to keep clear for the time being. First of all, we don't know what the market/brokers will do with the discount. It may take a while to settle down. And, secondly, I for one, am still not clear what the new management intend to do with the company. They say there are no good investing opportunities at the present time and, depending on how long they take to find something worth investing in, the sp could drift until they do.
So, going from memory, another special dividend of £9.14 per share, leaving a NAV of £11.14? Which, if the sp falls by the dividend, will leave the sp at a discount of about 34%? Have I got that right? More tax for me to pay, unfortunately, but a good deal, no doubt , if you are in an IDSA.
I think, as it stands ELTA is a good opportunity. The businesses they still owe are valuations, just, and not until sold will we know the P/L and then one has to wonder how bad this valuation may be to eat away the NAV discount ? I think this is a gem but Mr Market seems to have his own opinion and we never argue with Mr Market.
Numis (as reported by Trustnet today) takes the following view: 'after a series of realisations, there are now a relatively small number of investments remaining in the portfolio with around half of assets now being cash.
The board began the second phase of its strategic review in June and anticipates announcing the findings in Q4 2017. In our view, the likely outcome is a managed winddown and return of cash (Sherborne, the largest shareholder, has a policy to return capital on divestments to its own investors), Numis said.
The share price has been weak since the change in management and the current price of 1,670p represents a discount to estimated NAV of 17.1 per cent, although this rises to 34.3 per cent netting off the cash on the balance sheet. In our view, this offers value even though there are clearly question marks over the valuation of the remaining portfolio.
Electra Private Equity has ongoing charges of 0.51 per cent, which increases to 1.20 per cent when its performance fee is included. It is not geared.'
There is so little known of this company that "us real investors" are in the blind. We have no idea what's been happening and we cannot call it an "opportunity". We can always call investor relations maybe they are forthcoming with some information but I doubt they'd say anything over what's on the website already, and there is nothing on the website. How can you elaborate on "nothing" ?
Oh.... I see that I missed the further 900p per share paid in July, so by my calculations NAV is Circa £20, still a pretty good discount but not spectacular. It's about time this lot - new management - updated us real investors.
In June they published a pro-forma balance sheet ( see RNS announcements about that time) which reflected all asset sales and the last large special dividend. This showed NAV per share of some £29 and split this between the approx 10 large investments they still hold. Does anyone know if this position still holds?
If so £29 vs SP of £16/17 seems a bargain, but have I missed something?
They also said they were going to update the market with the results of their latest strategic review in the 3rd quarter, which of course we are now in.
The company has made no announcements since Srping I think, all we have is the position/assets as of March or something. No one knows what's going on, and it could very well "be steady as she goes" however complete silence has been harming the share price. There were some good director deals back in early summer I think, and that's the only noteworthy news I could find.Is "no news" good news?
Just over half of those assets are cash, lets hope they have a good plan for it, but in mean time the Discount seems a bit high, but managment want to look good under their control so a period of a low share price gives them plenty of scope to make a good return to claim the credit for. Just eliminating the discount equals £3
No, I don't think so. iii haven't updated it. HL gives a figure of about 16%. Personally, I'm not going to put any more money into this share until I know where they plan to take this co. Do they plan to liquidate it? If not, when are they going to make some new investments?
Does anyone know if the 69.5% discount still showing today on iii and Trustnet (information websites for this fund) is kosher ? I have been reinvesting all the dividend windfalls paid out recently into the same Electra fund, rightly or wrongly (?)
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