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Contango Income Generator Limited (CIE)

Discussion in 'Listed Investment Companies (LIC) and Trusts (LIT)' started by austing, 29th Sep, 2016.

  1. austing

    austing Well-Known Member

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    Last edited: 29th Sep, 2016
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  2. Bran

    Bran Member

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    I'm a total novice.

    I don't like the 0.95% management fee, and the explicit 'will sell down' to achieve 6.5% dividend. This makes no long-term sense to me. Losing capital/growth at the cost of maintaining the dividend? Isn't this a bit stupid? Or is this a widespread thing
     
  3. austing

    austing Well-Known Member

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    Yes, that's a potential downside. Might be forced to sell down holdings (potentially at a loss) to meet the dividend target. However note that the dividend target is an aim of CIE, NOT a mandatory requirement.

    A member just raised CIE in another thread so I thought it best to start a dedicated thread for CIE. I personally don't own it.

    The above said a decent "trading" LIC should generally have a good chance of producing enough trading profit to meet that yield. Just hope it isn't at the expense of NTA.
     
    Last edited: 29th Sep, 2016
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  4. austing

    austing Well-Known Member

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  5. twisted strategies

    twisted strategies Well-Known Member

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    Location:
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    outside the Top 30 BUT inside the XJO ( Top 200 )

    TOP 10 STOCK HOLDINGS WITHIN THE CIE INVESTMENT PORTFOLIO
    CODE STOCK WEIGHT
    ASX ASX Limited 6.9%
    BEN Bendigo and Adelaide Bank Ltd 6.0%
    TTS Tatts Group Limited 5.3%
    BOQ Bank of Queensland Limited 5.2%
    TAH TABCORP Holdings Limited 4.6%
    DUE Duet Group 4.0%
    SKI Spark Infrastructure Group 3.9%
    JBH JB Hi-Fi Limited 3.2%
    VCX Vicinity Centres 3.1%
    PPT Perpetual Limited 2.7%

    Liquidity 11.96 14.7%

    The top 10 positions total 45% of the portfolio
    – at the date of this report the portfolio has 40 stocks in total

    first off i was already a long term holder of ( in order of MY $values )
    BOQ ( up 53% ),
    BEN ( up 47% ),
    TAH ( up 97% )
    and SKI ( up 87% )

    BOQ the only one in my top 20 holdings and low down )

    now you can do the boring maths ( should you choose to )

    now the ( scary ) logic ...

    a while back i noticed a diverergence between the XTL ( ASX top 20 ) and the XJO ( ASX top 200 )

    so after thinking a bit decided to exploit this disparity

    to bracket the XTL, i selected ILC ( you might prefer VLC ) to exploit a low basket value in that index , and pursue as i might i haven't bought any as the ETF resists my target price ... so far

    to counter-balance i selected CIE ( it holds 4 shares i have done well on , some stocks i am unlikely to ever buy a full parcel of ... JBH always too expensive , VCX , nope not me while i held PPT for a while but it wasn't performing well enough so i exited .... and only TTS ( of the six ) is on my 'wish list ' .

    reasons ..... CIE was a ( fairly ) new LIC when i bought and had plenty of cash left to stock pick with ( a fair potential to grow faster than inflation and the index )

    please note NTA isn't a major fascination for me , i am more about div returns and div. growth

    also CIE is very near my next top-up target price ( range ).

    unlike the veteran and well respected LICs , this is still a work in progress and could do nice things ( just like buying MLT , ARG , or CIN some decades ago )
    ( please don't get me wrong i still like the old LICs but they have DIFFERENT strengths to this )

    CIE CONTANGO INC GEN LTD ORDINARY


    Balance Date Dividend Type Cents per share Ccy Franked % Ex-Dividend Date Books Close Date Pay Date
    30/06/2016 Final 3.500 AUD 50.00 13/09/2016 14/09/2016 28/09/2016
    31/12/2015 Interim 3.000 AUD 50.00 17/02/2016 19/02/2016 24/03/2016

    please note CIE is not a major holding , but a play to exploit an advantage in a sideways market

    ( DYOR )