re graphite enterprise trust plc

paddyman1965

I have approximately 500 shares in this investment trust and was wondering why the bottom has fallen out of them in the last month. Much more than the actual market has fallen. Shares were £4.11 on 31/7/08 and now only £1.74. Has anything happened to cause this fall, any advice very much appreciated.

itsmickdundee

paddyman1965 wrote: »

I have approximately 500 shares in this investment trust and was wondering why the bottom has fallen out of them in the last month. Much more than the actual market has fallen. Shares were £4.11 on 31/7/08 and now only £1.74. Has anything happened to cause this fall, any advice very much appreciated.

It could be, in their own words:

"The rate of realisations from the Company's unquoted portfolio has slowed materially in recent months and in the current uncertain economic environment the Board and the Manager considered it prudent to strengthen the Company's balance sheet. The sale both increases the Company's level of cash and reduces its level of undrawn commitments."


So it doesn't sound particularly healthy. Plus, if you check out their most recent RNS, it is so mind-boggling nonsensical, that it is no wonder the market has further pushed their share price down - even they don't know what the hell Graphite Enterprise are going on about.


All I'll say, is if you try and "cover up" what sounds like something pretty unhealthy at the company with a load of totally confusing number-based spiel, it's not going to do your SP any good...

Maybe you should have thought about using a stop loss.

purch

It mirrors very closely the fortunes of it's biggest Investment, Candover Investments Plc


LONDON, Oct 17 (Reuters) - Candover Investments plc:
RECENT EVENTS IN THE BANKING MARKET AND THE RESULTING DOWNTURN IN STOCK
markets worldwide will clearly affect Candover

UNAUDITED NET ASSET VALUE PER SHARE AS AT 30TH JUNE 2008 WAS 2051P.
WE CONTINUE TO EXPECT A LOW LEVEL OF INVESTMENT AND REALISATION ACTIVITY OVER
the next 6 to 12 months

CONFIDENT THAT WE WILL SEE INTERESTING INVESTMENT OPPORTUNITIES ONCE MARKETS
have stabilised

Milarky

It's best to be buying these regularly in a plan - and thus taking the sting out of the falls by averaging down on the price per share (each share gets the same dividend) Also buying regularly innures against 'short term' prices worries.

This is a trust - so they will have diversified risk and can always reposition their portfolio - but the good thing is that they may take their time about it - allowing for steady (if unspectacular) improvements in the share price.

purch

The real problem with Investing in a Trust/Vehicle like this that Invests in Unquoted company's is that the pricing of their NAV will obviously be very opaque.

Most of the Private Equity Trusts have had similar falls over the past 3 months.

agal

Discount of 63.7% :eek:

purch

Which to believe ??

The alleged NAV, or the actual price :eek: