PMC - Platinum Capital

[imajica]

company goes ex-dividend on the 24th October

current share price $2.08 fully franked divvy of 10c

is it worth buying for the dividend? have looked at price history and seems to hold its price even after it goes ex-dividend.

could someone please give me their opinion on the credibility of this company?

thanks in advance

 

[BennoBrisbane]

What is the last day on which I can purchase some PMC and still be eligible for the $15K SPP? I know they went ex-dividend today.

 

[skyQuake]

This Fri (but preferably earlier) T+3 settlement can be sloppy (ie T+4)

However its only a 5% discount to the VWAP. So when it craps out when the shares are issued -that 5% may be meaningless

 

[Judd]

Was buying during 2012 when it was about the $0.80 - $1.00 mark. Decided to take up the 1 for 5 entitlement offer at $1.55 per share.

 

[piggybank]

Was buying during 2012 when it was about the $0.80 - $1.00 mark. Decided to take up the 1 for 5 entitlement offer at $1.55 per share.

Hi Judd,

I looked up the rights issue and couldn't see anything in the 2012 section, but looking in the 2013 section I saw the notice pertaining to the "PLACEMENT AND RIGHTS OFFER" which was actually the 11 November 2013 - but I apologise if it wasn't.

Rights Offer
The Company will provide Eligible Shareholders the opportunity to participate in a Non-Renounceable Rights Offer of one (1) fully-paid PMC share (New Share) for every five (5) existing PMC shares they hold on the Record Date at the same price offered under the Placement. All Directors that hold PMC shares intend to take up their full entitlement under the Rights Offer. The price at which all capital will be raised is $1.55 per share, which is the 31 October 2013 pre-tax Net Asset Value (NAV). If fully-subscribed, the Rights Offer will raise gross proceeds of approximately $59.5 million. The offer price of $1.55 represents a discount of 8.6% to the most recent closing price of $1.695 on 7 November 2013.

Which leaves me to ask you (or anyone else who can explain it), why would anyone take it up if you are having to give 5 X $1.55 for just one $1.695?

Obviously there must be something wrong with my calculation.

Thanking you in advance of your reply.
PB

 

[GlobeTrekker]

Hi Judd,

I looked up the rights issue and couldn't see anything in the 2012 section, but looking in the 2013 section I saw the notice pertaining to the "PLACEMENT AND RIGHTS OFFER" which was actually the 11 November 2013 - but I apologise if it wasn't.

Rights Offer
The Company will provide Eligible Shareholders the opportunity to participate in a Non-Renounceable Rights Offer of one (1) fully-paid PMC share (New Share) for every five (5) existing PMC shares they hold on the Record Date at the same price offered under the Placement. All Directors that hold PMC shares intend to take up their full entitlement under the Rights Offer. The price at which all capital will be raised is $1.55 per share, which is the 31 October 2013 pre-tax Net Asset Value (NAV). If fully-subscribed, the Rights Offer will raise gross proceeds of approximately $59.5 million. The offer price of $1.55 represents a discount of 8.6% to the most recent closing price of $1.695 on 7 November 2013.

Which leaves me to ask you (or anyone else who can explain it), why would anyone take it up if you are having to give 5 X $1.55 for just one $1.695?

Obviously there must be something wrong with my calculation.

Thanking you in advance of your reply.
PB

Hi piggybank - For every 5 PMC shares you already own (which at the time were valued at $1.695), you get the right to buy 1 new PMC share for $1.55. Looks to have been a good deal (I bought my full entitlement plus a few more), they closed today at $1.755.

 

[piggybank]

Hi piggybank - For every 5 PMC shares you already own (which at the time were valued at $1.695), you get the right to buy 1 new PMC share for $1.55. Looks to have been a good deal (I bought my full entitlement plus a few more), they closed today at $1.755.

Thanks for that GlobeTrekker. Congratulations on making a profit on the deal. Hopefully it will only get bigger as time goes by

Regards
PB

 

[Miner]

should this thread be taken out considering no interest shown since Jan 13 2014 ??
thanks.
DNH. Wanted to read some recent posting - but definitely 4.5 years old data will not help much.
Any takes here

 

[HelloU]

(u got competition winnings to invest?)
no idea what DNH means so will talk off the top of my head....from a number of years of ownership.....so maybe wrong.
original bloke left (or sidled across or whatevs) and did not seem to change at all really. Trades well above NTA which is concerning until it remains trading above NTA, so no idea if it can do this forever. I have no idea what goes on day to day and care less as by the time reports come out it is too late to do any looks anyway....cos they do not really 'do' anything tangible anyway........gets shorted to hell as part of the platinum stable but shakes it all off...............and all that is off the top (as I said). I look at this as one of 'those' that has a little more overseas exposure...

 

[So_Cynical]

should this thread be taken out considering no interest shown since Jan 13 2014 ??
thanks.
DNH. Wanted to read some recent posting - but definitely 4.5 years old data will not help much.
Any takes here

Its Platinum's LIC, Platinum asset management (PTM) they are a big Aussie fund manager that has about 10 unlisted funds and 2 listed LIC's PMC is there first LIC and holds only international shares, no Australian exposure what so ever, Platimun have a very solid track record however the big guy kerr Neilson is leaving or has already departed after 31+ years running the show, building it from nothing to 26 Billion FUM.

https://www.platinum.com.au/About-Platinum

https://en.wikipedia.org/wiki/Kerr_Neilson

 

[Miner]

Its Platinum's LIC, Platinum asset management (PTM) they are a big Aussie fund manager that has about 10 unlisted funds and 2 listed LIC's PMC is there first LIC and holds only international shares, no Australian exposure what so ever, Platimun have a very solid track record however the big guy kerr Neilson is leaving or has already departed after 31+ years running the show, building it from nothing to 26 Billion FUM.

https://www.platinum.com.au/About-Platinum

https://en.wikipedia.org/wiki/Kerr_Neilson

Thanks So Cynical . Point taken

 

[Miner]

(u got competition winnings to invest?)
no idea what DNH means so will talk off the top of my head....from a number of years of ownership.....so maybe wrong.
original bloke left (or sidled across or whatevs) and did not seem to change at all really. Trades well above NTA which is concerning until it remains trading above NTA, so no idea if it can do this forever. I have no idea what goes on day to day and care less as by the time reports come out it is too late to do any looks anyway....cos they do not really 'do' anything tangible anyway........gets shorted to hell as part of the platinum stable but shakes it all off...............and all that is off the top (as I said). I look at this as one of 'those' that has a little more overseas exposure...

Hello U - DNH is Do Not Hold.
Great to hear your perspective on Platinum - I have reduced buy price by 20% and left on commitment,

 

[HelloU]

Hello U - DNH is Do Not Hold.
Great to hear your perspective on Platinum - I have reduced buy price by 20% and left on commitment,

so does that mean you have settled for second at 6 days out?..............(less cash to spend)

 

[Miner]

so does that mean you have settled for second at 6 days out?..............(less cash to spend)

Hello U
If you asked me if I am going to buy at a lower price set ? It is maybe to yes. With other stocks in hand and opportunities arise, I am however not any more blind to go for PMC.
The feedback from yourself, So Cynical and then reverting back to read the company (PMC) again giving me a reset button as well.
I do have stocks like JHX (looking like disappointing but holding), WMI and few others - so PMC is not a must have priority.

 

[Dona Ferentes]

Preliminary Final report out:

Overall investment return was negative 3.5% for the year ended 30 June 2020, as measured by its pre tax net tangible asset backing per share. The negative return from the Company's investment portfolio resulted in a net loss after tax of $10.1 million for the 2020 financial year.


The Company's investment performance during the 2020 financial year can be broken into two distinct periods:
-:. The six month period from 1 July 2019 to 31 December 2019, during which the Company portfolio delivered an investment return of 7.2%.
.- The six month period from 1 January 2020 to 30 June 2020, during which Company investment return was negative 10.0%. The cautious positioning resulted in significantly reduced investment returns during this period, mostly attributable to losses on its short positions.

The Company declared a fully franked 2020 final dividend of 3 cents per share. This brings the full year fully franked dividend to 6 cents per share representing a grossed up yield of 6.9% based on the closing share price of $1.25, demonstrating the value of the Licensed Investment Company Structure and the Company's dividend smoothing strategy.

- but they are struggling, as Value investors. All that hot tech and disruption stuff (and get it wrong on shorts, which compounds sub par returns). Big outflows from Platinum International, the unlisted equivalent.

(Hold)

 

[Belli]

Yes, and the amendment to Section 254T of the Corporations Act to allow for payment of a dividend based on a solvency test rather than only from profit as in the past also assists with these and other entities.

 

[Dona Ferentes]

It’s not surprising that the great theme of the Morningstar Investment Conference this week was the threat posed to equity portfolios by inflation and rising interest rates. The overwhelming sense of the day was that a regime change is under way, whereby inflation and interest rates will be higher for longer.

For the grey-haired (and sans-hair) investors who spoke, that environment is familiar. But for investors who have only been in the market for 15 years, a difficult new world awaits.

Platinum Asset Manager CEO, CIO and co-founder Andrew Clifford believes a policy mistake by central banks is all but certain, whether that’s raising rates too high and hurting the economy, or even cutting rates too soon and risking the return of inflation. The challenge is how to position your portfolio.

“For investors who have been around 25, 30 years, many – including myself – made the mistake in the last 15 years of not paying up enough for grow as rates came down, because you had this sense of a benchmark in your mind of what you should pay [for growth] and you were never quite paying enough for it,” he said.

“I think what we’re potentially going to have in the next period of 10 years or more is that as we adjust to higher rates, investors who have never experienced bear market investing … I think the potential is to make the mistake of paying too much for growth.”

For Clifford, the key is to find companies “where the earnings are here and now”, rather than companies where earnings are expected to grow to justify their valuation.

 

[Garpal Gumnut]

It’s not surprising that the great theme of the Morningstar Investment Conference this week was the threat posed to equity portfolios by inflation and rising interest rates. The overwhelming sense of the day was that a regime change is under way, whereby inflation and interest rates will be higher for longer.

For the grey-haired (and sans-hair) investors who spoke, that environment is familiar. But for investors who have only been in the market for 15 years, a difficult new world awaits.

Platinum Asset Manager CEO, CIO and co-founder Andrew Clifford believes a policy mistake by central banks is all but certain, whether that’s raising rates too high and hurting the economy, or even cutting rates too soon and risking the return of inflation. The challenge is how to position your portfolio.



For Clifford, the key is to find companies “where the earnings are here and now”, rather than companies where earnings are expected to grow to justify their valuation.

This reminds me somewhat of "Are you being Served", a British comedy.

Let us hope "Young Mr. Clifford" is better at prediction than he was with PTM with which I believe he is "involved" over the last 7 years and which has lost 75% of it's value.

gg

 

[divs4ever]

This reminds me somewhat of "Are you being Served", a British comedy.

Let us hope "Young Mr. Clifford" is better at prediction than he was with PTM with which I believe he is "involved" over the last 7 years and which has lost 75% of it's value.

View attachment 142486

gg

yes a wonderful opportunity to grab some PTM cheap not that long back , i will probably try to add some more around $1.50 , but if chasing certain fashionable stocks ... TIMES ARE TOUGH

i also grabbed some PAI around the same time

( the best time to grab active fund managers is after they have had a reality check ( and staff shake-up )

 

[Dona Ferentes]

(Now trading around $1.33)

The Board of Platinum Capital is pleased to announce its approval of a pro-rata non-renounceable issue of one (1) Bonus Option for every four (4) PMC shares held as of the Record Date.

The Bonus Options will be issued to all eligible shareholders with a registered address in Australia or New Zealand.

Each Bonus Option is exercisable at an exercise price of $1.37 at any time prior to 5pm (Sydney time) on 28 March 2024 and gives the Bonus Option holder the right to acquire one ordinary share in the Company. Any capital raised through the exercise of the Bonus Options will be used to increase the size of the Company's portfolio and will be invested in line with its investment strategy and objectives.

An application will be made to ASX to have the Bonus Options quoted and tradeable on the ASX under the code “PMCO”.

No action is required by shareholders to receive their Bonus Options.