LIC & LIT Listed Investment Companies (LICs) 2019

Discussion in 'Shares & Funds' started by Nodrog, 1st Jan, 2019.

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  1. mtat

    mtat Well-Known Member

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    Look through their latest annual report, it would definitely list all their holdings (at least as at 30 June)
     
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  2. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Downside of a LIC wind down is how much you paid above post-tax NTA. Given you paid below the ~$1.11 post-tax nta, you're actually ahead ~13 cents per share before fees.

    I've also been buying chunks of QVE ~0.98. if SCV comes back this will be a winner.

    I noticed a share buy back cancellation announcement for QVE. Does that mean they've ceased buying back?
     
  3. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Thank you.
     
  4. Anne11

    Anne11 Well-Known Member

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    Since you left i picked up drinking beer last week, ordered a 200ml at Felons Brewing Co and took me an hour to finish:) hope you are proud of me:)
     
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  5. Snowball

    Snowball Well-Known Member

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    No I think it means they have now cancelled the shares they bought back as I believe is typical with on-market buybacks. Now there are less outstanding shares available. Feel free to correct me anyone...?
     
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  6. The Falcon

    The Falcon Well-Known Member

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    Spot on, buy-back results in share cancelation increasing shareholders effective ownership on a pro rata basis
     
  7. jimmy

    jimmy Well-Known Member

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    Seeing as though URB may be merging and contact possibly selling the management rights off, anyone have any thoughts on what that means for BKI and whether we may see a reduction or increase in the MER. Might have been a nice little pay day for @The Falcon ’s good mates ;)
     
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  8. Nodrog

    Nodrog Well-Known Member

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    Me too, at least for tonite. A Spanish red of some description.
     
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  9. Nodrog

    Nodrog Well-Known Member

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    Yes, you will find share cancellation announcement periodically on ASX:

    https://www.asx.com.au/asxpdf/20191002/pdf/4494sktscj0pmv.pdf

    The buyback has only been in operation for a few weeks and it appears that it is being undertaken very seriously. At this rate it will be quite accretive for shareholders. Not without risk but QVE contrasts nicely with momentum / growth driving the index and more speculative funds.

    I’m a contrarian value investor by nature so value being out of favour fits well. And being in my favourite environment (LIC Sector) I feel I get even better value opportunity given the unique NTA discount opportunity. An additional margin of safety.
     
  10. Nodrog

    Nodrog Well-Known Member

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    Go away, it’s all mine:mad:.
     
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  11. Nodrog

    Nodrog Well-Known Member

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    Almost brought a tear to my eyes:cool:. Drinking is like an athletic endeavour. With practice and dedication you will improve your times:). Before long it will be like a sprint, down in 10 seconds or less.
     
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  12. Nodrog

    Nodrog Well-Known Member

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    I’ve given up on young Milner entities. MLT of the older internally managed variety is enough Milner exposure for me now. URB signalled young Milner and Co had lost the plot.
     
  13. Froxy

    Froxy Well-Known Member

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    But at some point Rob will hand over to Tom. Hard for him to screw up BKI or MLT too badly but SOL and BKW....
     
  14. mistercoffee

    mistercoffee Well-Known Member

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    Last year I bought a bunch of AMCIL shares at a big discount to NTA. AMCIL is the only lic in the AFIC stable that persistently trades at a discount - even now. Thanks to the labour party threat to franking credits, AMCIL paid a very nice special dividend in February ... it normally pays only one dividend per year (in August).
    The legendary Bruce Teele (and AMCIL chairman) is the only major shareholder.

    My question is: why is there so little love for AMCIL compared with AFI, MIR & DJW?
     
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  15. Froxy

    Froxy Well-Known Member

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    I recently held Amcil. It is the orphan of the stable.

    All the other funds have a clear purpose.

    AFI blue chip plodder paying a stable increasing dividend

    MIR small cap growth/value

    DJW pure yield play

    AMH half small cap / half large cap, annual dividend (last year an exception), no clear purpose IMO

    I think they could narrow that discount easily by:
    1. Share buy backs, one in place but cant see that its been used (im prob wrong)
    2. Semi annual dividends with some sort of attempt at consistency, even if paying out some specials when surplus
    3. Marketing and clear stated purpose

    Agree though that it actually should be doing better discount wise as it has a reasonable fee and good management.
     
  16. orangestreet

    orangestreet Well-Known Member

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    Was reading BKI’s September quarterly report and found this statement:

    “BKI is benchmark unaware.....”

    Curious to know if this was their previous position (published elsewhere?) or have they followed Milton into this territory?

    The full report can be accessed here: https://www.asx.com.au/asxpdf/20191017/pdf/449l2cq49mv4qz.pdf
     
  17. Froxy

    Froxy Well-Known Member

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    "We prefer not to know how far behind the index we are"
     
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  18. Snowball

    Snowball Well-Known Member

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    They all say this to some degree, doesn’t seem new. I take it as essentially... “We’re not just sitting here drinking lattes all day and copying the index, we do pick and choose what stocks we want to own.”
     
  19. Redwing

    Redwing Well-Known Member

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    u

    You can't underperform or outperform an index if you don't benchmark against one
     
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  20. SatayKing

    SatayKing Well-Known Member

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    With that in mind it must mean both my personal holdings and those of the SMSF are in deep do do's.

    Purists are likely to be most unhappy with that approach to which my care factor is....

    May as well keep on strumming.

    [​IMG]
     
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