A bit of sleuthing can be very profitable

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Mithras Investment Trust announced today they are to return capital to shareholders and the share price has dutifully risen by 4.75%.

Some healthy Director buying this year was followed by the appointment of Winterfloods as advisor and broker. Why does an established fund make a change….because change is afoot.

The November interims were unspectacular, Net Asset Value (NAV) had fallen slightly to 139.8p per share (vs share price of £1) due to foreign exchange adjustments but the reason to buy was this:
“On the basis of the accumulation of some surplus cash, the Company is now
in a position to consider making its first return of capital to shareholders.”

The news today is that they will return surplus cash when such cash is above £5m (currently £2m). I imagine there will be a payout in 2013 but they allow for other methods of enhancing shareholder value as well:

“The Board believes that tender offers are the most economic way to return capital in the near term but will consider using special dividends and share buybacks to return capital to shareholders, if appropriate, for smaller distributions below the quantum required to justify the costs of a tender offer.”

So there we have it. Directors buy, a new broker/adviser is appointed and a written commitment to close the near 40% discount.

Disclosure: at the time of writing the author holds MTH

Susan Marmor has been trading her ISA and SIPP full time for 7 years. She has made money every year, including 2008. She believes that making money is about picking the right shares at the right time and using sound money management techniques to manage risk.

For her trading she uses a combination of sound fundamental data and technical analysis (which involves using price charts and some of the fancy bits and pieces that go with them). She runs the occasional seminar to show people what she does and how she does it.


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