The Lemon Fool

Might be of interest to holders of SMT.

https://youtu.be/bK0nMAxJCO0

It's a short video (20 mins).

I guess there must be a fair few holders on this site in which case how do you view the news of the buy back?
Do you welcome it or wish that the funds available for purchasing it's own shares was deployed in some other way?

I was late to the party and so am under water on SMT so anything that will close the gap is welcome news for me.

There is no guarantee that it will improve things although as long as they buy at below NAV they will benefit ongoing shareholders.As a long term holder I am happy..

Dod

The announcement is made in RNS 9475G

Board Announcement: Scottish Mortgage makes available at least £1 billion for buybacks over the next two years.

Currently (around 14:30), the SMT price is up by around 4.6% on the day.

I've owned SMT for over a decade and even with the falls of the last couple of years, it is still by far my best performer. I'm very happy with today's news. I note that rival ATT has done much better recently and wonder if this has spurred them into action.

I too have held SMT for many years and even at the current depressed SP it is 3 times my cost. I very much support the share buyback which is a very sensible move both for the company and for shareholders.

All we need now is for some of their unquoted investments to demonstrate value - eg if SpaceX floated!!

I see that activist investor Elliot has just taken a 5% stake in SMT.

https://www.investmentweek.co.uk/news/4 ... h-mortgage

Suggests they see a turning point in share price momentum?

scrumpyjack wrote:I see that activist investor Elliot has just taken a 5% stake in SMT.

https://www.investmentweek.co.uk/news/4 ... h-mortgage

Suggests they see a turning point in share price momentum?

Um, doesn't Elliott like to shake things up? Not sure how SMT could be usefully shaken up: it's not as if the discount is in the kind of territory where winding it up yields juicy profits! And shareholders looking for the long-term growth (presumably most of us) aren't going to be easy to convince to disrupt that growth.

scrumpyjack wrote:I see that activist investor Elliot has just taken a 5% stake in SMT.

https://www.investmentweek.co.uk/news/4 ... h-mortgage

Suggests they see a turning point in share price momentum?

Very interesting. These are not stupid people, not by any measure.

This article is attributing the recent reduction in the discount to the buyback programme.

https://www.theaic.co.uk/aic/news/commentary/the-big-buyback-0

Moderator Message:
I have merged this topic into the exisiting[sic] SMT topic here. It did not belong in Company News. (chas49)

Erm, mildly confusing. Don't most of us think of this thread as "the existing SMT topic"?

On the subject of buyback, bear in mind that SMT issued vast numbers of new shares to limit the premium when it was on the spectacular rise a couple of years ago. So a buyback just effectively reverses that. They've traded close to NAV for most of the time I'm aware of.

UncleEbenezer wrote:

They've traded close to NAV for most of the time I'm aware of.

Discount history can be find in a chart underneath the performance chart here https://www.theaic.co.uk/companydata/sc ... erformance . you can change the time period too or hover mouse over chart to see exact figures.