WAM - WAM Capital

[System]

WAM Capital Limited (WAM) is an investor in listed Australian equities. WAM concentrates mostly on small to medium industrial companies and the portfolio is managed by Wilson Asset Management (International) Pty Ltd.

http://wamfunds.com.au//WAM-Capital/Tabs/WAM-Tab-Overview.aspx

 

[jono64a]

WAM Capital Limited (WAM) is an investor in listed Australian equities. WAM concentrates mostly on small to medium industrial companies and the portfolio is managed by Wilson Asset Management (International) Pty Ltd.

http://wamfunds.com.au//WAM-Capital/Tabs/WAM-Tab-Overview.aspx

Very good performance, but you pay for this with 1% p.a. plus performance fees. This would have been money well spent not too long ago, but recently its share price has overtaken NTA.

 

[piggybank]

P&F daily...

 

[waimate01]

Just be aware with WAM that when you read their reports which show their impressive outperformance, that this is outperformance you do not see. They've got lovely tables that show how much they exceed the market, month after month, year after year. But that is before everything. Your return will be much less, and much more like the market.

What WAM does achieve is an impressive franked dividend, and that's nice. But when you see their figures, just remember they have very little to do with you.

 

[GlobeTrekker]

Can anyone tell me why WAM, an LIC with 48% of its gross assets sitting in cash & fixed interest (over $300m) needs to undertake a new capital raising via SPP and placement to "provide WAM with additional funds to invest in the stockmarket as opportunities present themselves"? Why not just invest the considerable cash reserves that it is already sitting on (and has been for some time)? It has been bugging me that they're charging 1% on Gross Assets when they hold so much cash, and now they're raising more?

 

[pinkboy]

Can anyone tell me why WAM, an LIC with 48% of its gross assets sitting in cash & fixed interest (over $300m) needs to undertake a new capital raising via SPP and placement to "provide WAM with additional funds to invest in the stockmarket as opportunities present themselves"? Why not just invest the considerable cash reserves that it is already sitting on (and has been for some time)? It has been bugging me that they're charging 1% on Gross Assets when they hold so much cash, and now they're raising more?

Looks like WAM invested a lot more into the market this month reading their NTA report. Most likely due to the anticipated $190mil injection from the SSP.

Their NTA is also rapidly catching the SP in recent months. Perhaps parity soon and be not a bad buy with a current 6.8% FF yield and 2.5% discount in DRP.


pinkboy

 

[GlobeTrekker]

Looks like WAM invested a lot more into the market this month reading their NTA report. Most likely due to the anticipated $190mil injection from the SSP.

Their NTA is also rapidly catching the SP in recent months. Perhaps parity soon and be not a bad buy with a current 6.8% FF yield and 2.5% discount in DRP.


pinkboy

Yes, looks like you're right pinkboy, they spent up big in February. They bought quite a bit of HHV (their top holding now) which is an LIC that has done very well lately and still trading at a fairly decent discount. Interesting that their top 2 holdings are LICs.

I thought WAM was trading at too high a premium for a while there to be good value but their price has come back a bit since the SPP & placement even though NTA went up by a reasonable amount. While the SPP & placement at $1.90 may've led to a drop in share price, its probably had a marginally positive effect on NTA. Certainly worth a look if that premium drops further.

 

[waimate01]

Can anyone tell me why WAM, an LIC with 48% of its gross assets sitting in cash & fixed interest (over $300m) needs to undertake a new capital raising via SPP and placement to "provide WAM with additional funds to invest in the stockmarket as opportunities present themselves"? Why not just invest the considerable cash reserves that it is already sitting on (and has been for some time)? It has been bugging me that they're charging 1% on Gross Assets when they hold so much cash, and now they're raising more?

It's all about making Geoff Wilson wealthier. Not that I necessarily have a problem with that - Geoff seems like a lovely bloke who pays a very nice franked dividend.

 

[pinkboy]

It's all about making Geoff Wilson wealthier. Not that I necessarily have a problem with that - Geoff seems like a lovely bloke who pays a very nice franked dividend.

Certainly. Purchased a bit below and a bit above 2 pesos. With it still trading cum dividend, quite possibly top up even more in the next month or so.

Market cap @ $900mil is starting to look like a big boy.

pinkboy

 

[Muschu]

Marcus Padley gave this quite a wrap in my local paper today..... Certainly a good yield. I'd never heard of WAM.

Anyone interested in this company?

(I'm pretty much retired and becoming more conservative .... And probably over-invested in the banks.... I also hold ARG, AFI and TLS).

Your thoughts are very welcome.

 

[qldfrog]

Got some around 2$ went down to 1.9
now rising again so no loss here but a bit puzzled by the share price:
was not following the rises of the ASX which was unexpectedL
I was expecting some correlation even with a defensive bias.
Handled the last weeks fall very well
Anyway, on paper very nice so I hold and keep holding

 

[Miner]

Marcus Padley gave this quite a wrap in my local paper today..... Certainly a good yield. I'd never heard of WAM.

Anyone interested in this company?

(I'm pretty much retired and becoming more conservative .... And probably over-invested in the banks.... I also hold ARG, AFI and TLS).

Your thoughts are very welcome.

Motley Food recommended it. I bought but lost patience and sold it off. Probably mistake. It has decreased by 2 % over one year but has the potential. All Wilson scrips are pretty good and per Motley, this is the best one.It has 6.94% yield
But DYOR. Motley often canvases some scrips where they hold personally.

 

[pinkboy]

Personally I hold as well. With a market cap approaching $1bil, and a current yield of 7% FF, it is not a small LIC anymore.

My portfolio is made up of ASX Top 50, plus WAM as my Midcap coverage.

Again, as I learn more, and evolve my strategy, I feel I will move away from individual stocks in time and DCA into more LICs and ETFs. Still trading slightly above NTA, but the gap is closing. Very interested to see how it has fared over May.


pinkboy

 

[Muschu]

......
Again, as I learn more, and evolve my strategy, I feel I will move away from individual stocks in time and DCA into more LICs and ETFs. Still trading slightly above NTA, but the gap is closing. Very interested to see how it has fared over May.

pinkboy

Many thanks for this and the other replies. It is the case that the current price is very close to that of 12 months ago, although there was a high of $2.11 over that period.

I am very interested in your comment, PB, into LICs and ETFs. [What does DCA stand for?]

I am pretty much retired and hold AFI and ARG. Beyond that I hold traditional stocks such as the banks, TLS, WES and the like.

But I do like the thought of moving away from individual stocks!! [At my age ......]

Any further comment or elaboration welcome.

Regards

Rick

 

[pinkboy]

Many thanks for this and the other replies. It is the case that the current price is very close to that of 12 months ago, although there was a high of $2.11 over that period.

I am very interested in your comment, PB, into LICs and ETFs. [What does DCA stand for?]

I am pretty much retired and hold AFI and ARG. Beyond that I hold traditional stocks such as the banks, TLS, WES and the like.

But I do like the thought of moving away from individual stocks!! [At my age ......]

Any further comment or elaboration welcome.

Regards

Rick

DCA is Dollar Cost Averaging. It just means punching in regular amount over a long period regardless of price, and reinvesting all dividends. WAM also gives a decent 2.5% discount in its DRP.

I hold 12 other top 50 stocks all 100% FF, but I would like to revise my strategy and perhaps only hold ETFs and LICs. WAM looks after the midcap market, whereas AFI/ARG/MLT looks after the top end of town.

Another LIC Im watching closely is CDM, but haven't pulled the trigger yet.


pinkboy

 

[Muschu]

DCA is Dollar Cost Averaging. It just means punching in regular amount over a long period regardless of price, and reinvesting all dividends. WAM also gives a decent 2.5% discount in its DRP.

I hold 12 other top 50 stocks all 100% FF, but I would like to revise my strategy and perhaps only hold ETFs and LICs. WAM looks after the midcap market, whereas AFI/ARG/MLT looks after the top end of town.

Another LIC Im watching closely is CDM, but haven't pulled the trigger yet.


pinkboy

Thanks PB. Yes I do know dollar cost averaging but didn't recognise the acronym. This is not a strategy that I want to use - and is one I consider too risky - not wanting to take a chance on following a company into oblivion.

However I will investigate the LICs, and WAM especially. WAM seeks to have broken a little higher recently but I haven't checked the momentum.

Many thanks

 

[qldfrog]

Thanks PB. Yes I do know dollar cost averaging but didn't recognise the acronym. This is not a strategy that I want to use - and is one I consider too risky - not wanting to take a chance on following a company into oblivion.

As I understand from the thread, pinkboy is using DCA on ETF and LICS, not individual stock so highly reducing the risk you mention.Probably a strategy I should consider too

 

[GlobeTrekker]

I've switched from holding individual stocks to exclusively holding LICs. I like the diversification they offer and if you time it right, you can pick them up at a decent discount to NTA, which is where LICs can have an advantage over ETFs (which pretty much stay at their NTA). I switched when I found I didn't have enough time to do lots of research into individual stocks, though that said I still spend a fair bit of time researching each LIC, what it holds, its premium/discount history etc. I'm holding a bit of WAM (and its cousin WAX) and CDM, they used to trade at a fair premium, though this has come back a bit for WAM, and CDM now seems to be trading at a slight discount so they're starting to look like better value. CDM holds some international shares as well as Aussie. There are also quite a few other LICs that hold mostly international shares if you want a bit more diversification away from Aussie shares (PMC, TGG, MFF, HHV, PGF are the bigger ones). CTN is an LIC that specialises in smaller companies if you want a bit more diversification in Aussie shares, there are a few others that do this.

Muschu, if you're holding AFI and ARG then you probably don't need to hold additional individual bank shares, as they each hold a fair chunk of the big 4 in their holdings. ARG currently has around 22% of its holdings in the big 4 banks and AFI has over 30% in the big 4. They each hold a fair bit of Telstra too.

 

[Muschu]

I see WAM announced their results and dividend today. Both appear UP but the market reaction minimal. I know the liquidity is low but wondering if there is an opportunity.
Any thoughts from the more knowledgeable?
Many thanks

 

[Muschu]

I see WAM announced their results and dividend today. Both appear UP but the market reaction minimal. I know the liquidity is low but wondering if there is an opportunity.
Any thoughts from the more knowledgeable?
Many thanks

Think I got this wrong! Profit down due to increased management costs / fees but dividend up?