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IPE - IPE Limited

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Dezza

Dezza

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14 March 2008
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Long time guest / reader, first time poster...

Just wondering what the more experienced traders/analysts thought of this? Picked this one up years ago when it first floated, and over the past couple of months hasn't done much.

I realise that private equity groups are no longer in the limelight, but what are its future prospects?

Company's site: http://www.ingim.com.au/IPE/

Cheers in advance for your responses.
 
Re: IPE - ING Private Equity

Hi Dezza

An interesting company - completely new to me - so take my comments as first impressions and subject to moderation by those more familiar with the stock.

IPE is obviously suffering along with the rest of the market at the moment and its hard to distinguish between the general bear market effect, the current unpopularity of investment funds ( probably especially those with " Private Equity " in their names ) and factors specific to IPE.
In fact, the several "layers" involved are one of the problems.
At the top is the directorate/management of IPE - and I'd have to say the people involved are largely unknown to me and, I would guess, to most investors.
Then we have the management of the various funds in which IPE is invested. These people are even more " opaque", at least to me.
Finally, there is the management of the various companies in which the funds are invested. By their very nature, these people, and the companies, do not get exposed to any public/regulatory scrutiny.
The various layers also come with various fees, untimately borne by IPE shareholders.

IPE, at 74cents, is trading at a discount of 34.5% to latest NTA of $1-13. I havn't done any comparisons but investment funds typically trade at a discount and a sizable discount is probably to be expected in current market conditions.
The good news is that IPE doesn't have any interest bearing debt as at 31December, 2007 and I would expect that that wouldn't change. We don't know what the position is for the various investee funds nor for the companies in which they are invested. Neither, of course do we know how those companies are faring although there are some solid household names there - Griffins Foods, Kathmandu, Ezibuy - from the New Zealand perspective alone.

I certainly wouldn't be looking to buy/add until the market improves. Meanwhile, IPE looks interesting enough to add to my watchlist for the eventual upturn.

:)
 
Re: IPE - ING Private Equity

yes this is an interesting play.

I am a holder and think it is a good buy at current levels - I love harvesting the discounts to NTA. Checkout what happened with MPG. Very similar structure to this but got a takeover offer which put a rocket under the SP.

The way i look at it you are either in this for the long term and looking to access the superior returns of private equity over shares or looking for a similar catalyst that occurred with MPG to spur the shares up.

Either way its a good bet in the current environment.
 
Re: IPE - ING Private Equity

This stock has been hammered of late, probably more so then the overall market. It used to have a good dividend yield but i guess in the current market it won't continue
 
Noticed that IPE was up around 20% this morning so I took a look at the announcement, which stated that a definitive agreement has been signed for the sale of all the equity in ThreatMetrix to the British company Relx. ThreatMetrix is the largest underlying exposure in the Company's portfolio and the value implied in the sale is significantly above its recent carrying value.

Sounded OK. Then I took a look at the chart.

screenshot-shareinvesting.anz.com-2018-01-30-10-04-43.png


Ouch! The five year chart is even worse. I'm not sure I've seen so many steep cliffs fallen off so rapidly. Bit of a disaster this one. Best of luck to those holding but it doesn't look good.
 
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