The WAM Capital Ltd (ASX: WAM) share price has enjoyed a pretty fabulous day of trading on the ASX boards this Thursday.
At first glance, WAM's gain of 0.42% to $2.39 a share doesn't seem that noteworthy. It didn't even do as well as the S&P/ASX 200 Index (ASX: XJO), which closed up 0.54% to 7,311 points.
But when you consider that $2.39 is WAM Capital's 52-week high, you can understand why some WAM Capital shareholders might be in a celebratory mood today.
It comes after Wilson Asset Management (the WAM in WAM Capital) released its latest investment update. Wilson releases an update for all of its listed investment companies (LICs), including WAM Capital, every month.
And today, the update for September dropped at around midday.
What did Wilson say about WAM?
To kick things off, Wilson reported that WAM Capital's net tangible assets (NTA) per share stood at $1.98. That's up around half a percentage point from the $1.97 per share that this LIC reported last month for August.
Since they are what's known as closed-ended investment vehicles, an LIC can either trade at a premium or a discount to its underlying NTA. Usually, LICs with a strong performance history or high dividend yields command a premium. Conversely, LICs that don't enjoy as much investor confidence can trade at a discount.
We can probably put WAM Capital in the former camp. That's because even though WAM Capital only had $1.98 in assets per share as of 30 September, it was trading with a share price of $2.37.
At today's price of $2.38, this LIC now has a premium to its underlying NTA of around 20%.
WAM also told investors that WAM Capital managed to outperform the All Ordinaries Total Accumulation Index (ASX: XAOA) over September. It also announced that it has added to its profit reserve (from which it pays out dividends).
This LIC now has 28.2 cents per share in its reserve. That's up from 27.9 cents last month. Since WAM Capital's annual dividend is sitting at 15.5 cents per share, this indicates WAM has enough gas in the tank to fund it for at least another 12-18 months.
Some of the companies this LIC is currently invested in include Pact Group Holdings Ltd (ASX: PGH), Virgin Money UK (ASX: VUK), Aristocrat Leisure Limited (ASX: ALL), and Carsales.com Ltd (ASX: CAR).
At the current WAM Capital share price, this LIC has a market capitalisation of $2.09 billion. It also has a dividend yield of 6.5%.
