CDM - Cadence Capital

[vicb]

Anybody hold shares in Cadence. They are talking abouting listing on to the ASX.
I am still holding options and shares in them. I am thinking of taking up my options which finish on the 31/10/06.
The 8c dividend was a good return over 9 months. Floating it may have a negative effect on the price though.
Does anybody has any info on the float coming up?

 

[vicb]

Re: Cadence Capital Limited

Anybody holding options in Cadence?

 

[alonso]

I've recently taken a small holding in this stock/fund. Impressive returns over the past few years and seems
to be well managed.
Looks like a good option in lieu of cash deposits.

 

[dinga]

I've recently taken a small holding in this stock/fund. Impressive returns over the past few years and seems
to be well managed.
Looks like a good option in lieu of cash deposits.

Any views on the Cadence share placement (@$1.43) and bonus option issue (1:1 exerciseable at $1.43 before 31/8/2015) offer?

 

[pinkboy]

Any views on the Cadence share placement (@$1.43) and bonus option issue (1:1 exerciseable at $1.43 before 31/8/2015) offer?

Fair crack taken before this weeks ex dividend date. Circa 7% yield FF not to be sneezed at, especially trading at discount to NTA. ARG, AFI, MLT, DJW all have some sharpening up to do in the dividend area or we will see players like CDM and WAM etc become more attractive.


pinkboy

 

[GlobeTrekker]

Fair crack taken before this weeks ex dividend date. Circa 7% yield FF not to be sneezed at, especially trading at discount to NTA. ARG, AFI, MLT, DJW all have some sharpening up to do in the dividend area or we will see players like CDM and WAM etc become more attractive.


pinkboy

Its yield is good at 7% (compared to a bit under 4% for AFI and ARG which you've mentioned) but its share price is pretty much the same as it was 2 years ago. Compare that to AFI whose share price has gone from around $4 to $6 over the same period and ARG whose share price has gone from around $5 to $8 over the same period, with NTA's going up a similar amount for both those companies. Depends what you're after I guess, I hold a little bit of CDM and will continue to keep holding, but I've been more impressed with other LICs.

 

[skyQuake]

Its yield is good at 7% (compared to a bit under 4% for AFI and ARG which you've mentioned) but its share price is pretty much the same as it was 2 years ago. Compare that to AFI whose share price has gone from around $4 to $6 over the same period and ARG whose share price has gone from around $5 to $8 over the same period, with NTA's going up a similar amount for both those companies. Depends what you're after I guess, I hold a little bit of CDM and will continue to keep holding, but I've been more impressed with other LICs.

Keep in mind CDM has a whopping 120m oppies on issue ($1.43 calls) with a Aug expiry, compared to 210m shares on issue. That would account for the disc to NTA and maybe put on a lid on things

 

[pinkboy]

Keep in mind CDM has a whopping 120m oppies on issue ($1.43 calls) with a Aug expiry, compared to 210m shares on issue. That would account for the disc to NTA and maybe put on a lid on things

With the price floating under $1.40 at present, and still under NTA, and under the $1.43 option price, is CDM currently good value?

What will we see between now and August expiry? And just after expiry? From experience.

pinkboy

 

[WRiley]

Been reading this thread with interest,... now we know what happened after the options expiry last August with 120m options on issue compared against 210m shares on issue with Call at $1.43 ! Price is being held at $1.20..

 

[IrishDigger]

Over the years I've bought and sold a number of different LIC's and seen them go up and down; now I hold two which I will hold long term, mainly for the divs.

Over the years I've found that at one time or another every LIC seems to have its day in the sun.

 

[WRiley]

Over the years I've bought and sold a number of different LIC's and seen them go up and down; now I hold two which I will hold long term, mainly for the divs.

Over the years I've found that at one time or another every LIC seems to have its day in the sun.

Tq for sharing your experience. Which are the two LIC's that you have for long term ?

 

[IrishDigger]

Tq for sharing your experience. Which are the two LIC's that you have for long term ?

BKI and ALF

 

[WRiley]

BKI and ALF

Tq ID,...

1) BKI - what is yr entry price when you bought earlier ? I'm afraid at current price of $1.615, the grossed-up yield (ie plus FCs) is only 6.41%. I'd rather go for the banks for that rate.
2) ALF - Yes, this looks interesting. Rate rises coming soon,... how will ALF be affected ?

 

[PZ99]

"On Market Buyback - Cadence Capital
Please be advised that we are acting for Cadence Capital Limited (CDM.ASX) in an on-market buy back of shares and are unable to provide advice in respect of any proposed sale of shares. The buy back is active from 1 June 2019 and will complete no later than 31 May 2020. For more information on the buy back please contact the company directly or see ASX company announcements. We are required to provide this disclosure to clients prior to accepting any sell order for this security. You can dismiss this message by clicking the “X” above."

I got this flashed in red on my trading platform (ANZ) - not a bad ad for the stock.

 

[greggles]

Cadence Capital wins big with DeepGreen Metals.

Cadence Capital Limited (ASX Code: CDM) invested in DeepGreen Metals several years ago. DeepGreen Metals was to list on the Canadian stock exchange at that time. This listing was delayed for several reasons, but has now been replaced with a much larger intended listing on New York Stock Exchange.

Our DeepGreen Metals investment, is approximately 2.8% of the portfolio, and is valued at the weighted average cost of the most recent purchases made in FY2020. The proposed listing is at a valuation substantially higher than our current valuation. The transaction reflects a pro forma equity value for The Metals Company (TMC) of approximately US$2.9 billion and enterprise value of US$2.4 billion. The recent raising of US$330 million was done at a price of US$10 per share. Our investment is currently valued at US$1.38 per share. Upon listing this would equate to a substantial uplift in Pre and post tax NTA for CDM shares. This transaction is subject to shareholder and court approvals. Once the TMC shares are listed and trading freely we will value this investment at market price.

 

[Tommy Shelby]

I heard about this play on a podcast called equity mates presented by a fund manager called Henry Jennings. Also had a quick google search and appears that the fund has been pushing this since early March which would help with the reduction in discount to NTA.

Rough estimate it sounds like current NTA of $1.19 could be >$1.39 once SPAC goes through which would be an uplift of 28% approx in the next few months.

Am I missing something?

 

[MikesLM]

I heard about this play on a podcast called equity mates presented by a fund manager called Henry Jennings. Also had a quick google search and appears that the fund has been pushing this since early March which would help with the reduction in discount to NTA.

Rough estimate it sounds like current NTA of $1.19 could be >$1.39 once SPAC goes through which would be an uplift of 28% approx in the next few months.

Am I missing something?

I listened to that podcast too. It gave me great confidence that we’re onto a winner here. Henry Jennings calls this a ‘sleeper stock’ because of the DeepGreen (TMC) investment it holds that is only currently valued at book value - they intend to value it in future at market value once it lists in the US.

The transaction was announced as approved to go ahead today, so we should expect listing in a few weeks’ time. There is significant upside - especially if the value of DeepGreen jumps on listing and increase in value over time. There is a lot more capital in the US should hopefully this does well - especially with the tailwinds and topical issue of EVs and a greener future.

 

[Tommy Shelby]

Yeah the question I have is that this is public knowledge and still the market is not recognising that value potential as the price is below current NTA - I'd like to think I'm smarter than the market but history has shown that's not always the case.

The closing of the business combination remains subject to approval by SOAC’s shareholders and the satisfaction of other customary closing conditions. This is expected to occur in the third quarter of 2021.

I'm thinking it might be later on this year - 3rd Qtr could be September but still..

 

[Tommy Shelby]

Latest from CDM about the DeepGreen SPAC acquisition - If i read this correctly some existing SPAC shareholders have pulled out approx $83m of the original acquisition price but the share price is above what it was raised at originally.

Monthly update in March of 2021

If I'm doing this right the investment will be worth 7.5 times original value US which was 2.8% of the portfolio or roughly $0.03/Share which could now be worth $0.24/Share US or $0.33/share AUD so NTA could be up to $1.53/Share after the merger.

 

[monkton]

Latest from CDM about the DeepGreen SPAC acquisition - If i read this correctly some existing SPAC shareholders have pulled out approx $83m of the original acquisition price but the share price is above what it was raised at originally.
View attachment 130098


Monthly update in March of 2021

If I'm doing this right the investment will be worth 7.5 times original value US which was 2.8% of the portfolio or roughly $0.03/Share which could now be worth $0.24/Share US or $0.33/share AUD so NTA could be up to $1.53/Share after the merger.


View attachment 130099

Certainly hope you're right, I don't yet dare to dream but there has been good movement in the share price recently, be interesting to see what CDM trades at on Monday.