City Of London Investment (LON:CLIG) (I hold)
I haven't traded individual shares for a long time and CLIG has me scratching my head. I bought in before the lastest upswing but lately the volume is quite low and the price keeps trickling up with the odd large intra day spike.
I logged into my broker to see what I could get for them and the offer was just over the mid point at 516.5 (Sell 510, Buy 522 at the time). Any ideas what is happening? Is someone accumulating shares at the midpoint?
I hold
The spread on City Of London Investment (LON:CLIG) has always been fairly wide and that can give rise to large swings with low volume.
One item that can give rise to price swings are sales by Barry Olliff, the founder who is now 76 but remains an NED although expected to retire this year. In the Trading Update issued 20/1 they stated "The Company wishes to inform that, subject to being in an open period, Barry Olliff, Founder and Director, wishes to refresh his selling intentions to sell 250,000 shares at each of 475p, 500p and 525p. In addition, the Company will no longer provide trading intentions for Mr. Olliff post 30 June 2021, which is the Company's year-end." Given that the half year results are due to be published shortly, I don't believe that he is currently able to sell but obviously his intentions are public and will provide some level of overhang in the market. I suspect that he will be looking to achieve better than 475p on the first tranche now.
The same trading update indicated that the Karpus acquisition had bedded in well and I notice that the brokers forecasts have recently been increased:
I am hoping for further progress and upgrades following the half year announcement.
City Of London Investment (LON:CLIG)
With the recent acquisition, valuation looks attractive for the future
City Of London Investment (LON:CLIG) reports the AUM and profit every month (see link below).
https://www.citlon.co.uk/inves...
My own hope the shares will re-rate to £7.50 by year-end 2021.
As always DYOR.
BSV.
It seems the market didn't like City Of London Investment (LON:CLIG) results today - it was the worst performer in the FTSE All Share Index. I read them thinking that they were reasonable.... does the outlook not look so good for this company?
I think that there was little new information in the announcement today - most of the key information had already been disclosed in the trading update.
I suspect that Barry Olliff, the founder, has sold 500,000 shares at 500o and the market is struggling to digest the sale. This will be confirmed in the next couple of days when he declares his new, lower, holding.
I will continue to hold City Of London Investment (LON:CLIG) as the Karpus acquisition appears to have bedded in well and I see the fair value for the shares considerably above the current level. In the meantime, a +5% yield is most welcome.
