Splits: FTSE call options paying massive divis

Both Danae ZDP (DNIZ) & Jove ZDP (JOVZ) have been rescued out of the Aberdeen bucket-shop. Typically, Aberdeen terminated the individual websites as soon as the management switch was implemented, so up-to-date portfolio & NAV information is only now slowly emerging.

Jove reported their ZDPs NAV just before Christmas, having confirmed legally the Manager's required priority toward the different share classes. Essentially the priority is to ensure the repayment of the ZDPs accrued entitlement, rather than cramming in income for the benefit of the Income shares. The full portfolio will be revealed with the Interims early in January. The NAV announcement seems to confirm that there are no "Black holes" - so JOVZ will soon be recognised as one of the very best value Zeros. They can be bought at 39p v. the current NAV of 70.15p inc 6.16p of Revenue Reserve. Gross Assets are £18.9m - Debt is £7.5m - Net Assets £11.4m - Gearing @ 39.7%. Target Value on Wind-up is 100p; the Wind-up date is near-term: 31/10/04. Assuming no growth, the Redemption yield is well into the 30s - even allowing for conservative portfolio valuations and winding-up costs. A "safety-net" valuation of 64p on redemption would provide a GRY of 30.7%. It is likely that this stock will be trading through the 40p level once the Interims are announced - thought to be next week.

Sold some of my PIGZ (see Post No.85) last week - to my mind the 100% gain just goes to show that you can play the Zeros and still make great capital gains without the increased risk of the Income class. Of course, gains of that order are now less likely to be available, but I'm anticipating a 60%+ gain out of JOVZ in just under two years; and will be more than happy with that. What are others' views on JOVZ?