Uncle Doug
26 Feb 2015
Re: Strong buy 2.given that the asset value is going up on very little movement of its top 10 shares why do you not think that the short term 90% rise of TEP did not effect the NAV?Picking out one share (TEP) in a portfolio of 40+ underlying shares that AIF hold has no meaning if the other 39 are doing badly. All those 40+ shares affect the NAV not just TEP. I noticed back last summer you expected a big rise AIF because ACL had risen - but AIF has since fallen badly. DYOR - but it is not an advisable way to value an investment trust basing it on one or two shares.
Uncle Doug
26 Feb 2015
Re: Strong buy 1. Why would you want to set a target price on an income fund?I always set a target regardless of investment type. These targets are based on appropriate indices, similar investments and sectors and my research and experience. My target is around 340 by end of 2015, but if they keep revisiting the 280s then I can't see this happening. 315 by end March would be bullish. If my targets are not met then I switch my money to somewhere that will work better for me. AIF is at the riskier end of the investment spectrum and I set targets accordingly and will have more patieunderstand there can be blips but I still set a time limit of how long I will accept under performance.
trivaskus
26 Feb 2015
Re: Strong buy Re or are you happy to take your 4% divi while the sp falls 15% - 20% in a year?Answer - No Uncle Doug but I am happy to keep taking the 8% + income from my capital investment in AIF until such time as your prediction comes true (if ever)Recently acquired shares will be sold (ex-divi) for a small profit when I find a suitable stock to invest in.Meanwhile here are some questions for you.1. Why would you want to set a target price on an income fund?2.given that the asset value is going up on very little movement of its top 10 shares why do you not think that the short term 90% rise of TEP did not effect the NAV?3. Why are you looking at a short term performance of the fund when it is a long term investment?4. Why are you still on discussion board anyway if you are gong to dump your shares?We will have to see who is right in the long run - like PIE-EATER said no point trying to convert the unconvertible.Conqratulations on owning IRV shares, your last (negative) post on their discussion page prompted me to set a stop loss now I will have to put up by 30p
PIE-EATER
25 Feb 2015
Re: Strong buy Just one point for EVERYONE......DO NOT under any circumstances take all the info on this site as Gospel......FUNDAMENTALS in particular are woeful, and have been since the change from using the Halifax platform a couple of years ago. This is not to detract from any comment by anyone in particular.Uncle Doug.....a question for you. Given you are so obviously negative on this Trust.....why haven't you just sold out?For those who are obviously so in favour......why try to convince detractors since they appear to have made their mind up?For what it's worth...(and probably not much)....if someone has a genuinely open mind then discussion is fantastic. For those who's mind is made up.....let them get on with it.....it is after all their money and so their choice. If I genuinely want opinions I will ask......but there is no point getting too embroiled when minds appear to be made up. Each to their own opinions and.....GLAPEP.S. Here endeth the Gospel on whether AIF is the best / worst thing since sliced bread.
trivaskus
25 Feb 2015
Re: Strong buy Other negative contributors to performance during January included Numis (-14.6%) and Telecom Plus (-13.7%). "No comment"I don't have an price target Uncle Doug but I do have an exit strategy which is to sell if the market is looking dodgy, I did this in 2011 when I sold my entire holding of 10k shares for 204p each having not paid more than 115p for any tranche of shares.Any Uncle Doug you seem unconvinced but I note that it is my post that are being voted up not yours. Goodbye
Uncle Doug
25 Feb 2015
Re: Strong buy "I note that AIF have some TEP shares, I first bought these at around £1.00, they are now over £11."Triv - TEP not in AIF's current top 10 holdings ... they were once £18 so I hope you (and AIF) got out at the top. Anyway, picking out one share is irrelevant as Acorn have 40+ stocks - TEP is just one of them and does not prove anything as it is probably only ~3% of the overall fund. The true facts are that AIF is doing very badly in relation to its sector. If you Click on "Factsheet" tab (above) and then Click "Performance" and you will see what I mean. I will be looking very closely this year at YTD and last 3/6 months figures to see if there are any signs of a turn around in fortunes.What is your target on AIF or are you happy to take your 4% divi while the sp falls 15% - 20% in a year?
trivaskus
25 Feb 2015
SP spike Last year in the SP of TEP, one of AIF's holdings, had risen dramatically, I recall a rise of £7 in one day. it reached £19 in March and then dropped back to £11.AIF's NAV & SP peaked in April last year and then dropped back could this have been another factor in the rise and fall of the SP.Incidentally, for those who question AIF's stock picking ability TEP was the 6th. best performing FTSE share over the last 5 years
trivaskus
24 Feb 2015
Re: Strong buy Re "Almost anybody could have picked better stocks than this fund over the last year or so".I note that AIF have some TEP shares, I first bought these at around £1.00, they are now over £11. This is probably a modest return by your standards but its the best share I've ever owned.
trivaskus
24 Feb 2015
Re: Highly commended: Acorn Income Fund In the past it was not uncommon to see a discount to NAV of around 10% however the NAV is more important than the SP. I cant understand why people are selling, especially with a dividend due shortly unless they paid to much for them and are panicking?I note the last NAV statement wasCum-Income 351.70, Ex-Income 346.23 a difference of 4.74p. If my calculations are right then thes figures would have been 25p higher had they not increased the dividend.The NAV/SP Gap in now closing and the "20% off sale" is probably over.
trivaskus
24 Feb 2015
Re: Highly commended: Acorn Income Fund I was into this fund for several years before you could buy it on the stock market, that fund was wound up but 15 million? shares where not cashed in. The fund, was then reborn, using those shares, under the present management and listed on the stock market. I've been buying from £0.62 upwards since 2008. assuming the NAV was somewhere near the share price then it as more than quadrupled .
PIE-EATER
24 Feb 2015
Re: Highly commended: Acorn Income Fund Couldn't be bothered to try and time this.....give the manager the time and money and let them work for their fees
PIE-EATER
24 Feb 2015
Re: Highly commended: Acorn Income Fund SLS.L = Standard life smaller companies fund.....one of the stalwarts of smaller companies run by Harry Nimmo....higher mkt capitalisation but suffered heavily over the last 12 months, which by and large is unusual as it has mainly been those with a high AIM exposure which have fallen most. One of the key things has been the sad loss of John McLure.....who was both a very good manager and a really nice guy. His protégés are currently managing the fund and I am totally confident that at the minute they are under-rated. When their skill is appreciated the discount should narrow somewhat.DYOR ETC ETCPE
fliboy
24 Feb 2015
Re: Highly commended: Acorn Income Fund I have to say that this seems illogical to me. I still don't see how the traded value can be worth so much less than the market value of the underlying assets? If it was announced that the fund was to be wound up next week, presumably the market would see it as a buying opportunity and everyone would pile in for a 16% profit?As a matter of interest I had a look at the list of trades over the last 3 months or so. There are just as many buyers as sellers.
Uncle Doug
24 Feb 2015
Re: Highly commended: Acorn Income Fund fliboyAcorn trade at a discount because they are out of favour - ie. people are selling, ie. they think they'll go down even more. The more sellers the bigger the discount. Even though Acorn are buying back their own shares to try and close the gap to NAV the gap just keeps on widening and the sp falling. Green shoots? Don't think so.Henderson High Income Trust which conversely has been doing well recently and invests in the same area as Acorn trades at a premium to its NAV. People are buying even though they're paying more than the underlying value of its stock.
fliboy
24 Feb 2015
Re: Highly commended: Acorn Income Fund Can someone please explain why the discount is so big? If the fund were to be wound up tomorrow we would all get our share of the NAV (less some admin charges) wouldn't we? Isn't that the true measure of the value of the shares?So why is the SP so much lower?
