marktime1231
03 Apr 2018
Stock split etc - views please The AGM on 18 April invites a vote by this Friday on the usual bland stuff, plus the following ...13. To approve the amendments to the articles of association to facilitate a ten for one stock split effective 3 May 2018 with a nominal value of €0.10 per share.14. Approval of the amendments in the articles of association to increase the authorised share capital of the Company, with effect from 3 May 2018, to €60,000,000 composed of 600,000,000 shares of €0.10 each.A stock split means lots more lower prices shares ... so what? I understand this encourages more speculative trading, so we might see greater volatility? But greater liquidity should narrow the buy-sell gap which is generally a good thing? EAT say this is for marketability reasons, which I guess amounts to the same thing.The cap increase allows for extended share issue to take place. There are currently about 35.6 million within a cap of 50 Million (becoming 356/500 after the 10-1 split) and so this allows lots of freedom to continue regular issues of equity at a slight premium, raising cash for the dividend and controlling the premium, and this is the stated intention. AND/OR a chunky issue of shares to increase the size of the Trust and allow major new investments ... that feels like a good plan while there are bargains to be had? Presumably there is corporate demand for EAT. As the trust gets bigger I would expect charges to come down.So I intend to approve these resolutions but wonder what others might think.
sharegardener
23 Mar 2018
Re: Yes then - or no then Just bought some more EAT @1251 today. Probably still at slight premium to NAV but hoping this will be a temporary price dip but might be cheaper next week!Also, 3 more quarterly dividends of 0.22 Euro still to be paid for 2018 (last day of April, July & Oct). Ex-div dates likely to be around the middle of relevant month.SG
marktime1231
23 Mar 2018
Re: Yes then - or no then Squeezed by a stronger pound and a worldwide slump while Trump is trying to start a global trade war. EAT starting to look very good value <1250 if you believe these issues will resolve themselves.But then everywhere is looking cheap as the FTSE returns to 1999 level.The only stock in my whole portfolio which is surviving is SMIF. My 2018 income candidates NCYF and SQN are also facing up well to the threat of returning bond yields. SQN actually has picked up strongly this week I think on confidence that issues with its defaulting investments are being resolved positively so it may not be a bargain for much longer. NCYF looks at an expensive premium again, I'm now sorry I was put off taking a first stake at 58p by people wiser than me warning of Danger.On a brighter note (need something positive to talk about), it is now a whole year since I removed a pension pot from the clutches of an Aviva Mixed Asset fund into a SIPP where it has been mostly invested in a mix of these income ITs and bonds and gold miners. The face value of my SIPP is just ahead, so I am well up because Aviva would have swiped a greedy fee. I will stick to accumulating high income producers, the goal a natural yield of 6% within reach.
marktime1231
16 Feb 2018
Yes then maybe it was a good time to buy at 1265, returning market confidence and a slightly sweeter GBP:EUR helping the recovery. I would not worry about a quite small premium which EAT carries at most times, it is a sign of the strong ongoing demand for the shares thanks to table topping performance, and doesn't get out of hand.Hindsight of course. I remain happy with the outlook for the European economy and so with my double up on EAT at this level, but that is a logical reason which the last II article I read said counts for nothing anymore.SMIF remains the one high yield income stock in my portfolio which has weathered the recent storm (please don't let that remark put the kibosh on it) but also trades at most times at a healthy premium.
Windlesham Don
12 Feb 2018
Re: am I missing something? With the current jittery markets I am not minded to buy any trust trading at a premium to NAV. I'll sit on my hands for now and see if the market acquires a direction. If it remains volatile then there should be an opportunity after some down days to pick up a few bargains at a reasonable discount.Regards,
marktime1231
12 Feb 2018
Re: am I missing something? Markets and exchange rates settling back. If you think EAT will end the year 1,335 and higher it will repay the current premium and cover the generous yield.The recycled article from Helen Pridham thinks this is a good corner of an income portfolio, despite already some exposure via SIGT. But it is a bet on European small-mid cap growth. I no longer have a clue whether that is a safer bet than a bond proxy stock or fixed interest trust since the markets went mad.If I had not already added in time for the Jan dividend I would be looking for the right time to do so before the next one in April.
Stepenwolf
12 Feb 2018
Re: am I missing something? Hi FolksWith the share price down to £12.65 - time to buy some more ?
Wyre Fox
06 Feb 2018
Re: Europe small caps hit hard "ASLI is looking a good call though ... sp relatively unaffected, a new enough income trust that no-one has much of a profit position to bail out of? "ASLI is still largely in cash. It has only announced one major acquisition since raising capital, a logistics park near Frankfurt that cost it just over 10% of the capital raised.
marktime1231
06 Feb 2018
Europe small caps hit hard by the prospect of an additional or earlier 0.25% step in US interest rates?So much for globalisation and short trading, volatility not dead after all.Euro small caps and trusts with a premium have taken a super hard hit. My review of EATs capital-to-income approach was that it is equipped to deal with temporary dips in NAV, even quite deep ones, a long steady decline would be where it comes unstuck. Not too worried then, while European growth, employment etc is rising.ASLI is looking a good call though ... sp relatively unaffected, a new enough income trust that no-one has much of a profit position to bail out of?
PIE-EATER
26 Jan 2018
Re: am I missing something? Windlesham DonAs a pension trustee, this opinion was pointed out to me in a "recent" paper as late as 2013 / 4. Yes, you CAN go stock specific, bond specific, commodity specific etc and focus on certain companies and make big bucks, but of course what you are inadvertently doing is looking at which sectors are undervalued, have great prospects etc and why...eg because Japan / Europe / USA look good or bad....why? because of interest rates, GDP, Unemployment etc etc.i.e. it is inadvertent asset allocationIt could be argued therefore that, as you say, once you have decided on how much EM you want / need, the choice of fund A vs B is almost the "fun" element.GLAPE
Windlesham Don
25 Jan 2018
Re: am I missing something? An interesting discussion on various EM funds, however I was pointed to an article a while back on asset allocation.A study was conducted (admittedly a while back in 1991) which determined that by far the dominant contributor to total portfolio returns is asset allocation. Indeed, on average asset allocation accounted for 91.5% of the variation of portfolio returns over time, not stock selection (4.6%) nor market investment timing (2.1%). I was staggered when I read this...So the key choice to be made is not which fund to choose within the EM sector, but how much of your portfolio should be in EM. Get this choice correct over time and your portfolio will prosper!Remember, DYOR,
PIE-EATER
24 Jan 2018
Re: Strengthening pound MarktimeWith things like asset allocation, JEMI etc, we are neither right nor wrong. We do what we believe is best for ourselves and stay open to learning how others do it in case we can benefit.One could say the only person who is wrong is the one who only claims to be right! (eeee this is getting to philosophical for me )GL to all...and to slightly paraphrase Dave Allen....instead of "May your God go with you" ....may your investments rise for you.PE
PIE-EATER
24 Jan 2018
Re: am I missing something? Purely on a diversification of risk, our EM exposure is split 3 ways TEM, JEMI and Baring Em Mkt Leaders UT (my wife and I regard our ISAs and SIPPS as one big portfolio for asset allocation so allows us to dabble in one or two "niche" positions for ?fun?)
marktime1231
24 Jan 2018
Strengthening pound To spite my confidence that GBP:EUR looked pretty stable we have seen the exchange rate progress from around 1.125 to 1.147 ... unwinding fears of Brexit are outpacing confidence in the Eurozone. Good news if you have a half-term ski trip in mind.In terms of EAT that means a 22c divi translates into slightly fewer of our new English pences, and it dampens the progress we see in NAV when translated into the sp in Sterling even though the value in underlying stocks might be kicking ahead. On the other hand when we get to calculate next years divi, that sum is worked out on the NAV in Euro, so we get a boost to yield, and an extra boost if the exchange rate settles back.Is that right?(Regarding the place of an em equity income trust with shrinking yield in my retirement income portfolio, I am happy to disagree. Just been reading through the SMIF annual report, it is astonishing where they place some of their bets, so I'm pretty sure I have plenty of indirect exposure to bonds and ABS in far flung places. I'm sure you are all right and I am wrong but JEMI is not for me.)
Windlesham Don
24 Jan 2018
Re: am I missing something? Agree with both that there is definitely a place any balanced portfolio for EM exposure. I have held TEM for many years, and despite some bumpy times it has performed well.
