Tag Archives: buy

CAPD – Capital Drilling – Added

I forgot to post that i added to my CAPD position 2 days ago. Fortunately as the trading update i was pre-empting came out early – today! I read it as good and so did the market – up nearly 10% today.

http://m.londonstockexchange.com/exchange/mobile/news/detail…

The key points are:
There was a slowdown towards end of yr, ‘but fear of decreasing capital expenditure by miners is over done here:

‘We have also received confirmation of drilling activities from clients representing approximately 90% of our forecast revenue for 2013.”

They have planned reduction in capex 2013 which was 30m this yr. So next year if revenue is anything like this years, they will be throwing off cash, enough to fully pay off the modest 22m pounds of debt.

It was on a p/e of under 4, so its still cheap. I’m aiming for this to double and am happy to hold this long term.

Wanna buy a tenner for a fiver? SIGNET GLOBAL FIXED INCOME STRATEGIES – SIGG

I bought some SIGG on Friday after seeing a tweet about it. I’m writing this up quick so i’m vague on the details but go look for yourself. They are a closed fund that hasn’t done too well since it started several years ago. The share price has drifted and now stands a whole lot lower than the NAV. The NAV is 92p or thereabouts and the price to buy is about 55p. Ok so this disconnect between NAV and SP might continue forever…. but we have a potential catalyst.

They announced last year that they were wrapping up and liquidating the fund!! Great news for shareholders. The only catch is it will take a while. Around 35% is planned to be liquidated over 2013 and beyond that timescales are not known. Still there could be a cash return soon and this could spark interest and a narrowing of the SP and NAV.

Limited downside and lots of upside!!