Definitely interested in learning about what less volatile options you find interesting.
Pete’s thread about investing is focussed on high growth companies which can do spectacularly well or the opposite.
Can someone define value shares for me please?I've a few different definitions in my head.
Hopelessly naive but the more research I do, the more mistakes I make. So now I'm basically just throwing darts, given the above.
“Just one in four active fund managers that invest in large US-listed companies beat Wall Street’s S&P 500 share gauge in 2021, as stockpickers again struggled to match the returns delivered by cheap index trackers following the US equity market.”https://www.ft.com/content/d1f96d83-1a72-47d7-a4af-2483bd49b024
I'd be interested.. I've never invested until this year, now beginning to dabble. Mostly trackers but also some funds that invest in companies owning/developing renewable energy assets (which may fit with your preferred style).
Quote from: kelvin on February 23, 2022, 09:08:43 pmCan someone define value shares for me please?I've a few different definitions in my head.Great question! In the generic sense every shareholder believes that there is sufficient value in their investment that the share price will rise otherwise they’d sell. However, value investing has a more specific meaning and weighs up the value of the tangible assets owned by a company (cash, property etc) it’s dividend payout, its earnings (profit) record and its level of debt. The key metrics are P/TNAV (share price to tangible net asset value ie assets minus debt) PE (share price to earnings) and Dividend Yield (share price to dividend).
Not very racy but VLE (Volvere) is a cautious turnaround operation with a great track record of buying distressed companies cheaply turning them around and selling them for multiples of the purchase price. They have recently raised a lot of money through a placing so have a sizeable war chest to take advantage of the current market conditions. There is a lot of downside protection as their market cap is roughly equivalent to their ‘true’ NAV. There is a great thread on ADVFN if you want to look into it further. Because of some recent stupid rules it’s classed as a complex investment (it isn’t) so you can’t buy it in an ISA. I hold mine in a SIPP. It’s by far my largest holding.
Quote from: shark on January 15, 2021, 08:39:04 pmNot very racy but VLE (Volvere) is a cautious turnaround operation with a great track record of buying distressed companies cheaply turning them around and selling them for multiples of the purchase price. They have recently raised a lot of money through a placing so have a sizeable war chest to take advantage of the current market conditions. There is a lot of downside protection as their market cap is roughly equivalent to their ‘true’ NAV. There is a great thread on ADVFN if you want to look into it further. Because of some recent stupid rules it’s classed as a complex investment (it isn’t) so you can’t buy it in an ISA. I hold mine in a SIPP. It’s by far my largest holding.Good results from Volvere today and it’s up 7.5%. It’s main investment (80% holding) Shire Foods has increased revenue by 13% to £30.6m, and PBT is up a 18% to £2.14m - an excellent result in the face of general rising raw materials, energy, logistic and staff costsIt’s more recent smaller turnaround investment - Indulgence - increased revenues by 21%, but made a £1m loss so still work in progress.They have cash of £21.9m for new investments and the Shire investment is likely to be worth in excess of £18m against a market cap of £31m so plenty of downside asset protection and upside opportunity when they flip Shire but patience is required.
Mine is in an ISA, by the way, so you can get it in one.
Guess I’m talking to myself with regard to boring value plays but further to previous posts on LDG the proposed changes to the investment policy and the share buyback has been approved. An exemption has been approved such that the reduction in shares from the buyback won’t automatically trigger a takeover requirement for DBay and concert party if the threshold is crossed. The proportion of equity held by them is a concern and the risk of a future stitch up for private investors is concerning but given their activities reputational damage is important. The announcement has triggered a small rise today but only to 13.8p whilst the current cash per share stands at 18.7p (I think). That cash per share figure will rise as they buyback shares at a discount to cash. The change in investment policy now gives DBay in its role as investment manager virtual free rein to invest in a wide range of sectors in unlisted and listed companies. Their track record in this respect is excellent. If the buyback clears out disaffected shareholders such that the gap closes between the market SP and the Cash per Share then I’ll most likely sell out. If not I’m happy to wait and see how they invest the remaining cash.