Doceo’s Watch List

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Doceo’s Watch List
Credit Doceo

Doceo’s Watch List: discover who came from nowhere to top the list of Winterflood’s biggest monthly movers

BARGAIN BASEMENT

Discount Watch: 19

Our estimate of the number of investment companies whose discounts hit 12-month highs over the course of the week ended Friday 01 September 2023 – 15 less than the previous week’s 34.

12 of the 19 featured last week: Downing Renewables & Infrastructure, Atrato Onsite Energy and Gore Street Energy Storage from renewable energy infrastructure; Pantheon Infrastructure from infrastructure; BioPharma Credit, Blackstone Loan Financing and Chevanari Toro Income from debt; Schroder Income Growth from UK equity income; PRS REIT, Regional REIT and Phoenix Spree Deutschland from property; and LMS Capital from private equity.

That leaves just seven newcomers: Menhaden Resource Efficiency from environmental; Syncona from healthcare; CVC Income & Growth from debt; Ecofin Global Utilities and Infrastructure from infrastructure; Bankers and Monks from global; and BlackRock Energy & Resources from commodities and natural resources.

ON THE MOVE

Monthly Mover Watch: HydrogenOne Capital Growth

Came from nowhere to claim top spot in broker Winterflood’s list of biggest monthly movers in the investment company space – shares are up 15.7%. No material news out over the month, although the company did announce on 29 August that its results for the six months to 30 June 2023 will be published on 20 September 2023. Mr Market expecting good numbers?
Elsewhere, no budging Geiger Counter (GCL) from second place. Gain on the month now up to 12.3% having boasted an 11.7% rise a week ago. Still no company news out since the interims in June. Put the gain down to strong uranium markets. How strong? Just take a look at the share price performance of Global X Uranium ETF (URA) – up 10.6% on the month. GCL more than matching the ETF.

As for the final top-five places, JPMorgan Global Core Real Assets is in third thanks to an 11.1% monthly gain. Company’s share buyback programme having the desired effect – 400,000 shares bought back over the course of the week. In fourth spot with a 9.4% gain, it’s a reappearance for Ediston Property, last seen on Winterflood’s list two weeks ago. Back in August, the company issued a press release, confirming “…that it is in advanced discussions with RI UK 1 Limited, a wholly owned indirect subsidiary of Realty Income Corporation, regarding a possible sale of the Company’s property portfolio.” JPMorgan Emerging Europe, Middle East & Africa completes the top fivers with a 9.2% gain on the month. Familiar territory for the fund as it also made the top five in July. No news out in the past week – strength down to buoyant emerging markets?

Scottish Mortgage Watch: Better week again

For Scottish Mortgage (SMT) and the wider global sector. SMT’s share price saw its loss on the month narrow from -7% to -2%. Not to be outdone, the NAV loss shrunk to -1% from -4.4%. The global IT sector as a whole ended down just -1.6% on the month, having started the week off -4.3%.

THE CORPORATE BOX

Buyback Watch: Real Estate Credit Investments

Revealed “…that it intends to commence a share buyback programme…(Programme)…The Programme will extend…to the end of the Company’s current financial year on 31 March 2024. The aggregate purchase price of all shares acquired under the Programme will be no greater than £5.0 million.”

Borrowings Watch: Literacy Capital
Announced that its RCF “…will be fully repaid from the proceeds…” of the recent sale of an unnamed investment. As at 30 June 2023, the RCF was £17.0m drawn compared to £2.9m on 31 March.
£30 million – the size of a borrowing facility secured by Nippon Active Value Fund “…to provide the Investment Adviser with flexibility to temporarily gear the portfolio when appropriate, eg to facilitate takeover initiatives. At 30 June 2023, the portfolio held 0.6% in cash and at 29 August 2023 is approximately 2.3% in cash.”

Dividend Watch: 1.68x
Dividend cover at BBGI Global Infrastructure: “In March 2023, we provided revised dividend targets for 2023 and 2024 of 7.93pps and 8.40pps, respectively. These revised dividend targets will increase the dividend growth rate to 6 per cent, ensuring our shareholders benefit from the increased value created by our high-quality, inflation-linked portfolio. We had strong cash dividend cover of 1.68x in H1 2023, with cash receipts ahead of projections… We expect our dividend targets to be fully cash covered.”

For the full Watch List including tips in the media visit

Not financial advice: The Information contained in or provided from or through this article is not intended to be and does not constitute financial advice, investment advice, trading advice, or any other advice.

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