Herald Investment Trust; Chart break-out and discount to NAV too wide?
Herald Investment Trust (LON:HRI) (552p and 4.8% of JIC portfolio). I have added to my holding in the Herald Investment Trust. The Trust's objective is to achieve capital appreciation through investments in smaller quoted companies in the areas of communications and multi-media. The business activities of investee companies include information technology, broadcasting, printing and publishing and the supply of equipment and services to these companies. The Trust currently has about 65% of its assets in the UK, 21% in North America, 5% in Japan and 3% in Europe Middle East and Asia. Its largest 10 holdings make up around 24% of the portfolio; Imagination Technologies, SDL, Telecom Plus, Mellanox Technologies, IDOX, Diploma, Opsec Security, Phoenix IT, Bango and M&C Saatchi. The Trust has an excellent record since its inception in 1994.
Why have I added today? The shares are trading on a 20% discount to net asset value and as recently as August 2011 the discount was as narrow as 13%. For the first time in nearly a year the Company has started buying back shares, 435,000 in the last week. The chart above also excites me as the share price has "broken out" through the recent highs of February and July 2011 and now stands at the highest level since November 2000. This chart pretty much mirrors the Nasdaq Composite which also closed last Thursday at its highest level since 2000.
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On 1st January 2012 I set up the JIC portfolio with £151,110 cash.Under "Transactions" you can see how it has been invested, "Portfolio" shows the current portfolio and my approach to investing is described under "About Me". A history of all my postings can be found under "Company Blogs". I… ...read more or visit website »
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Herald Investment Trust plc is a United Kingdom-based investment company. The Company's objective is to achieve capital appreciation through investments in smaller quoted companies, in the areas of telecommunications, multimedia and technology (TMT). It invests in various sectors including information technology (IT), broadcasting, printing and publishing, and the supply of equipment and services to these companies. Herald Investment Management Limited (HIML) is the investment manager to the Company. more »
