NSC - NAOS Small Cap Opportunities Company
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On December 1st, 2017, Contango MicroCap Limited (CTN) changed its name and ASX code to NAOS Small Cap Opportunities Company Limited (NSC).
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Chart update
Dona Ferentes
A little bit OC⚡DC
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So, what are you seeing, Señor Frugs?
I've been peripheral to Naos for quite a while, followed their info, dug deep, even been to seminars and met the players , but never bought (the story).
It's a good story, resonates with my thinking, but .. but ..
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i could not see the compelling angle here , caught my eye ( and imagination ) yes , several times .
while i have have some nice success in small caps over the last 11 years , i was aiming for div. income plus growth , this LIC seemed to go more for capital growth ( without jumping on every 'hot new IPO story' )
did i make a mistake by buying elsewhere ... ( say in the 2011 to 2018 period ) , maybe but then it really didn't scratch the correct itch ( for me )
what about the current scenario of the market , i see a looming credit crunch , and these small caps. will certainly be tested keeping the cash-flow positive , can the fund managers find enough growth stories to keep the narrative intact , or does it resort to robust small caps trading at steep discounts , in temporary market moves ( a small cap. is often a victim in generic 'flights for safety ' )
a LIC looking for small cap. opportunities in a tumultuous market ( without resorting to straight out trading .. like say WAX ) certainly a strategy for the brave contrarian , but do you wait for the market to be much lower ??? ( when i am more likely to be shopping for GEAR [ the ETF ] or cherry-picking large and mid caps
the other problem for LICs in small caps in trying to get the cash into ( or out of ) without moving the market , i can shift my one or two thousand dollar trades without much difficulty ( most of the time ) , but what about a hundred thou. or even a million ( without investing in cap. raises , and share placements )
certainly one to watch in a market panic ( for education ,primarily ) will it be a victim or master the storm
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A chart with seemingly a bit of potential with a regular dividend history, just a very shallow scrape of looky looky though. I'd put more weight that you have looked into it
It has raised the question in my mind though, what happens to one's franking credits if one participates in the dividend reinvestment plan?
From what I'm seeing lately, a DRP seems an expensive way to buy, by the time it actually happens.
Dona Ferentes
A little bit OC⚡DC
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Franking credits are attached to dividend, so you get them for yr tax return that year. (Only the) Dividend is reinvested and forms the capital base of that new parcel of shares for future CGT considerations.
...
The DRP is "cheap" with NSC posting Feb NTA if 89c but trading much lower at 69c (March NTA not out yet; likely today and lower)
4A.5 .. DRP price calculation methodology
DRP shares were acquired on-market as the share price was trading below NTA.
4A.6 .. DRP Price (including any discount):
AUD 0.68130
4A.8 Will DRP +securities be a new issue?
NO
So, there's a value there, ability to pick up a few extra shares close to market without brokerage.
BUT... ... will NSC ever uplift and close the discount to NTA? There's a share buyback happening, but some factors see the gap remaining, imo.
@Belli posted in AFI thread a good commentary on some factors as to LICs trading at a NTA premium or discount. Although relating to AFI, it is pertinent to all LICs
What it means to trade at a discount or premium to NTA
Find the latest news and updates from AFIC. Read now.
Dona Ferentes
A little bit OC⚡DC
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still out there ... dividends 4x a year , and a 10% yield
shrinking to greatness. MC $60M
shrinking to greatness. MC $60M
