Plenty of that sounds good in theory and I would like you to be...

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nicleeson

2,255 Posts.

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26/03/24

00:04

Post #: 73053264
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Originally posted by LankyLazza: ↑

- Fear begets fear, but confidence begets confidence. Performance begets share price performance. Share price performance begets share price performance
- A couple of years of solid positive performance and of beating the index and I’d be anticipating solid price appreciation as well as narrowing of the price discount to NTA
- There aren’t as many of these LICs left and this is a good one
- The ability to be exposed to equities but with a portfolio approach via one online broker order and that allows exposure to shorts and to > 100% gross exposure for the invested dollar (and in this case with Regal’s expertise you get exposure additionally to Materials and Energy but at the higher quality end of the spectrum)
- Tax advantages of LIC structure and accumulation of franking credits and advantage of company structure to retain and ‘reinvest’ profits (versus open funds which are forced to pay out lumpy distributions and often in a tax ineffective form)
- Phil
- Regal
- Recent positive performance and changes since Regal took over exclusive management of the Fund including the movement to close to 100% net exposure (and an even larger gross exposure with the potential for magnified benefit from longs and shorts combined)
- Those who read technicals would presumably see an uptrend, an upward sloping channel, higher highs and that it’s taken out the 52 week high (bullish signals)
- I believe it was (not surprisingly) oversold given the unrelenting series of disasters but the future appears more exciting IMO
- Secure fully franked 6 monthly dividend that’s reasonable and growing
- Buyback

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Plenty of that sounds good in theory and I would like you to be correct.

It does raise the question though shouldn’t Regal be selling this a bit to the market like you have just then? Should it be labelled Regal, if not why not?

The company line still is this is the VGI team (totally changed from IPO and individuals not really proven track records), so it’s VGI’s investment calls, with Phil King “overseeing” things, and that they have some extra resources to lean on from Regal staff. Still plenty of rope I assume for VGI to stuff things up ?

So technically this LIC is still one of the highest fee charging products in the market for an inexperienced unproven team?

VG1 Price at posting: $1.85 Sentiment: None Disclosure: Held
3 Upvote

0 Great analysis

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