LIC & LIT Listed Investment Companies - Fundamental Analysis

A rat rat rat rat rat rat ratty!

 

Welcome back and thanks for the analysis. .. and the story too.

 

I am listing these a bit differently from now on. I am putting the analysis onto my blog. The reason for the change is that if I post it here and there is an error or a change to the spreadsheet I cant edit it here. So over time I foresee that there could be two or three versions of an analysis on this site.

If you view it on my blog you no it is the most current and there will be only one version.

The first is Clime Asset Management - CAM What a shocker and it telling something about the software product they flog "Stocks in Value which one would assume that they use.
https://www.blogger.com/blogger.g?blogID=7858471206199967552#allposts

I have added a document management field at the bottom which will record any changes made to previously published analysis

 

Not that it may interest you now but I think the "RESOURCES" section here allows you to edit stuff.

Looks like a google account is needed to access your blog.

Good luck with your blog.

Cheers

 

Can you try this link and let me know if it works. I have logged out of my Google account and this works for me.

LIC Fundamental Analysis

 

Beauty, yep can get there now.

Thanks

 

There appears to be a mismatch. You've got CAM as the Headline Title but CDM data by the look of it?

Might just be me but is it possible to reduce the font so the width of data is a little easier to take into field of vision?

 

Both are total duds so the outcome is the same! Avoid

 

If you scroll down you should see all.

 

Check the heading:

 

He, he. Yes.

@The Falcon, a man of few words.

 

It renders OK on my screen taking up about 2/3rds of the screen on resolution 1920 x 1080

 

Fixed

 

Just published the analysis of Australian United Investment Company – AUI

LIC Fundamental Analysis

A very conservative index hugger punished by more than 50% of portfolio in big four banks, mining and energy combined with a reluctance to sell or use options to protect the portfolio when the outlook looks bad.

 

Just looked at your CAM analysis. I knew they were bad but yes "shocker" is a more appropriate word.

 

Over the long term AUI has been quite ok. Dividend reliability and history is good. The ability to pick this one up at a discount and participate in very attractive offerings such as SPPs, Bonus issues, Rights Issues more so than some other LICs has given the investor an opportunity to do better than what the numbers suggest. But that could be said of a number of LICs. For numerous reasons I have only been prepared to purchased this one when it was at a noticeable discount. I no longer hold however.

The inclination for the board to favour Resources overtime is a concern. As for options etc Volatility I can live with. Although the board making investment decisions keeps the fee low I'm not confident they are being proactive enough. I tend to favour buy and hold but there are times when some action is required even if there is CGT. Not my preferred choice but purchased at a discount it's unlikely to cause it's investors any grief over the long term.

 

Thanks team for all this amazing info! I look forward to working out what it all means and how I can use it

 

If you read the introduction to this thread, that will be a good start. Here is how I use it.

With equity investments I aim for a portfolio return of 6% plus inflation post tax over the long term
First thing I do is look at line 31 (Portfolio Return Earnings %), 5 year return. If it is greater than 40% (Ie 8% per year) that is a tick. Bear in mind that these results after after all taxes have been paid or provided for. Then I look at the 3 and 1 year return and if they are around better than 24% and 8% respectively that is another tick because it implies consistency in return and may justify paying a small premium for the stock, if necessary.

Then I look at line 32 (Portfolio Return Dividends %) for the same 3 periods. Ideally this % should be around 2/3rds of the portfolio earnings which means the manager is retaining part or the earnings for future growth. It also enables the manager to deliver increasing dividends without eroding the capital of the business. When dividends exceed earnings, the dividend is coming out of the NTA. This is OK as a one off, particularly if the business has a history of retaining part of earnings. If it is a regular occurrence it is a dud business.

I dont pay much attention to NTA because line 31 tells the whole story. If you are old school and wish to add NTA return to Dividend return you will get a number close to the Portfolio Return but note you will be mixing NTA pre tax with dividend post tax

 

Works for me.

 

Just added the analysis for PMC.

An interesting one. Here is my take

* Overall performance is satisfactory, but how they get there is a bit lumpy.
* Sensible manager, stopped paying div's when div's would be paid out of share capital with no franking credits.
* Usually offers fair value, share price frequently trades for around it's NTA.
* From a high of $1.90 this year SP down about 25% and appears to be over done. But

* Current SP is weak, low volumes with twice as many sellers than buyers.​

* There is a perception that the manager's fees are excessive. Compared to many others with a lesser pedigree, not so for the segment they invest in.
* If I was seeking a steady increasing dividend this one is not suitable.
* If I was seeking capital growth from an international exposure with the bonus of a decent but at times irregular dividend, fully franked. This one ticks the box
* I think I could get this one for around $1.3? it will offer potential good upside.

LIC Fundamental Analysis