Scottish Mortgage heading for where

[nmdhqbc]

they must be confident as they've just added a couple of % to gearing. I'm not sure how these things work though. would this have been in the works for months before the recent pull back or are they being opportunistic here?

https://www.investegate.co.uk/scot.mort ... 00090196Z/

[BullDog]

they must be confident as they've just added a couple of % to gearing. I'm not sure how these things work though. would this have been in the works for months before the recent pull back or are they being opportunistic here?

https://www.investegate.co.uk/scot.mort ... 00090196Z/

No idea, but I guess the latter. I suspect the SMT management have to be quite fleet footed to do really well in the areas they invest in.

[Dod101]

they must be confident as they've just added a couple of % to gearing. I'm not sure how these things work though. would this have been in the works for months before the recent pull back or are they being opportunistic here?

https://www.investegate.co.uk/scot.mort ... 00090196Z/

If you read the following quote from the announcement it is fairly obvious that there is nothing opportunistic about it. It is simply not their style.

''At present, competition for capital in the Scottish Mortgage portfolio is intense. Raising fresh capital at this point will allow us to patiently back more transformational growth companies, as well as increasing stakes in companies who are making considerable progress operationally thus expanding the scale of their opportunities. We possess no competitive advantage in trying to predict short-term market gyrations. Therefore, no tactical attempt was made to capture recent market swings."

Dod

[AsleepInYorkshire]

If you read the following quote from the announcement it is fairly obvious that there is nothing opportunistic about it. It is simply not their style.

''At present, competition for capital in the Scottish Mortgage portfolio is intense. Raising fresh capital at this point will allow us to patiently back more transformational growth companies, as well as increasing stakes in companies who are making considerable progress operationally thus expanding the scale of their opportunities. We possess no competitive advantage in trying to predict short-term market gyrations. Therefore, no tactical attempt was made to capture recent market swings."

Dod

Can someone tell me what does this first line mean please?

Thank you

AiY(D)

[scrumpyjack]

If you read the following quote from the announcement it is fairly obvious that there is nothing opportunistic about it. It is simply not their style.

''At present, competition for capital in the Scottish Mortgage portfolio is intense. Raising fresh capital at this point will allow us to patiently back more transformational growth companies, as well as increasing stakes in companies who are making considerable progress operationally thus expanding the scale of their opportunities. We possess no competitive advantage in trying to predict short-term market gyrations. Therefore, no tactical attempt was made to capture recent market swings."

Dod

Can someone tell me what does this first line mean please?

Thank you

AiY(D)

I think it means that there are lots of unquoted companies who want SMT to invest in them because of their track record of success and the value of SMT endorsing them. Also existing investments of SMT seeking more capital.

Lastly their RNS also mentions the need to raise further borrowings so that the gearing ratio is maintained at the desired level. As their size has grown (though recently shrunk somewhat!), more borrowings are needed to keep the debt/equity ratio the same.

[Darka]

If you read the following quote from the announcement it is fairly obvious that there is nothing opportunistic about it. It is simply not their style.

''At present, competition for capital in the Scottish Mortgage portfolio is intense. Raising fresh capital at this point will allow us to patiently back more transformational growth companies, as well as increasing stakes in companies who are making considerable progress operationally thus expanding the scale of their opportunities. We possess no competitive advantage in trying to predict short-term market gyrations. Therefore, no tactical attempt was made to capture recent market swings."

Dod

Can someone tell me what does this first line mean please?

Thank you

AiY(D)

I believe it means that they have spotted more opportunities and don't have sufficient capital to invest in all of them; so they want to raise some money to be able to buy more holdings as well as increase existing ones.

[UncleEbenezer]

Intense competition may mean investees seeking further investment for growth. This is usual in companies that are growing rapidly.

[jonesa1]

Some of the borrowing might be needed to fund the DCM. At the current share price the value of shares in treasury is just shy of £500M.

[BullDog]

Heading towards 1000p. Fill your boots time soon?

[AsleepInYorkshire]

Heading towards 1000p. Fill your boots time soon?

Whilst I appreciate there's not really a discount to the NAV when purchasing as it could be similar when selling, does the discount to NAV give any sense of the value of the funds and it's current price?

If that's a dumb question please go easy on me - I'm only "ickle"

Thank you

Take care

AiY(D)

[monabri]

Heading towards 1000p. Fill your boots time soon?

I'm not so sure...momentum is carrying the sp down.

[BullDog]

Heading towards 1000p. Fill your boots time soon?

I'm not so sure...momentum is carrying the sp down.

It is. And soon enough it's fill your boots time. Perhaps sub 1000p if you're lucky. Good luck!

[RockRabbit]

Heading towards 1000p. Fill your boots time soon?

I'm not so sure...momentum is carrying the sp down.

It is. And soon enough it's fill your boots time. Perhaps sub 1000p if you're lucky. Good luck!

Only if you want exposure to shares such as Tesla and Ginkgo Bioworks which have the potential to drop a lot from here.

[AsleepInYorkshire]

Only if you want exposure to shares such as Tesla and Ginkgo Bioworks which have the potential to drop a lot from here.

Do the Fund Managers sell off shares if they feel the value has shifted?

AiY(D)

[BullDog]

Heading towards 1000p. Fill your boots time soon?

I'm not so sure...momentum is carrying the sp down.

It is. And soon enough it's fill your boots time. Perhaps sub 1000p if you're lucky. Good luck!

Only if you want exposure to shares such as Tesla and Ginkgo Bioworks which have the potential to drop a lot from here.

Agreed.

[vand]

They used to make graphic cards that you bung into your PC in the forlorn hope that your game could run above 10fps. I'm not saying they're not a good company, but the market is treating them as if they're the second coming, apparently worth $625bn offt the back of $25bn revenue... I know there's a chip shortage but, c'mon, its ridiculously overrated, imo.

Obviously because you think that they only do graphic accelerators for games.

I think that I did mention self driving cars.

https://www.nvidia.com/en-gb/self-driving-cars/
https://www.nvidia.com/en-gb/self-drivi ... /partners/

Of course that isn't obvious if you don't read the industry technical journals.

I never said I think they only do graphic accelerators.

But their cashflow statement tells me that in 2021 they made $4bn off the back of $17bn sales - clearly a good business - but they have a market capitalisation of $580bn - clearly an overpriced stock, even granting them healthy continual growth in 2022.

[AsleepInYorkshire]

They used to make graphic cards that you bung into your PC in the forlorn hope that your game could run above 10fps. I'm not saying they're not a good company, but the market is treating them as if they're the second coming, apparently worth $625bn offt the back of $25bn revenue... I know there's a chip shortage but, c'mon, its ridiculously overrated, imo.

Obviously because you think that they only do graphic accelerators for games.

I think that I did mention self driving cars.

https://www.nvidia.com/en-gb/self-driving-cars/
https://www.nvidia.com/en-gb/self-drivi ... /partners/

Of course that isn't obvious if you don't read the industry technical journals.

I never said I think they only do graphic accelerators.

But their cashflow statement tells me that in 2021 they made $4bn off the back of $17bn sales - clearly a good business - but they have a market capitalisation of $580bn - clearly an overpriced stock, even granting them healthy continual growth in 2022.

Grace is due to go on sale in 2023

AiY(D)

[monabri]

Heading towards 1000p. Fill your boots time soon?

I'm not so sure...momentum is carrying the sp down.

996p per share at 13:00 (-15mins).

[BullDog]

Heading towards 1000p. Fill your boots time soon?

I'm not so sure...momentum is carrying the sp down.

996p per share at 13:00 (-15mins).

Finger hovering over the buy button here......

[Adamski]

Melt up in the price today +5%, .. volatile markets at the moment.