Marwyn Value Investors Share Discussion Threads

[hugepants] 21/9/2016 12:06

These look too cheap to me. Even in an extreme case where all the investee companies issue a profit warning on the same day and their shares each tank 30% I estimate NAV will still be about 165p (factoring in cash, other assets and master fund liabilities) which at 137p to buy still represents a 17% discount and a 6% yield. I assume the company will still have over £40M cash from the placing at 220p last November so will presumably still be obliged, re terms of the fund-raising, to pay the 2.06p quarterly dividend.

Just an estimate so DYOR etc.

[jhan66] 20/9/2016 21:35

More cash arriving soon. BCA XD 4p this week & ZEG paying 2.25p too.
I was quite impressed by the recent noise from ZEG board but because of concerns with liquidity I bought half in ZEG directly and half in MVI.
I've sold my ZEG holding within days because of the continuing collapse here. I'm showing a small profit overall and although I'm uncomfortable about MVI movement at least I have their NAv cushion.

[gleach23] 20/9/2016 19:06

Deadline for interims is 30th Sept so maybe we'll soon learn about the plan for the cash...then again, maybe we won't :)

[spectoacc] 20/9/2016 16:53

@gleach - fair point, if there's that much cash. I guess the question is - what do they intend to do with it?

I still reckon the main problem with MVI is the very limited number of holdings - of course it's the main advantage if they're all going gangbusters, but when I look at eg GLOO & ZEG, I can't say either are co's I'd particularly want to buy (BCA is at least liquid).

[gleach23] 20/9/2016 16:28

Higher volume today but looks like rollover trades going on in the main. Still a drip-feed of smaller sales going through though and the drift looks like continuing for the moment.

I notice the last results highlighted that the discount had been 'managed' to 10% from 28% from the previous year but also suspected that was more to do with the ETO sale and the placing. Directors seemed to be taking credit but it appears to have settled back to historic levels as you say.

That said, if half the NAV is cash, doesn't it mean that the remaining assets are even more heavily discounted than the 35% SP/NAV ratio would currently suggest? In which case, as posted above, the discount is factoring in the limited portfolio?

[spectoacc] 20/9/2016 15:53

@Oxman - I tried a sale a few weeks ago when it was above 150, no online quotes. Tried both sides today out of interest - zero to sell at 137, but could buy at 137.1, on a 137/139 spread! So in answer to your question - "lower than here". The 137.1 trades are at least buys, but clearly an overhang building from a motivated seller.

To be fair, the current discount only takes it back to where it was a few years ago - discount of nearer 10% was only a recent phenomenon, presumably based on the sale of ETO.

None of this means there's anything wrong with the company of course, nor with BCA, ZEG or GLOO, but I fancy it to drift lower yet.

[its the oxman] 20/9/2016 15:42

Just keeps falling. Where's the floor?

[spectoacc] 20/9/2016 08:16

@oregano - good point, and nothing to stop a buyback during closed period if done at arms length.

Be interesting to know who the big seller is & why they're selling.

@MF - BCA seems to be their only liquid holding, I'd not fancy trying to sell many GLOO or ZEG!

[oregano] 19/9/2016 14:31

if these guys genuinely are value investors, they should be buying their own shares in at a 35% discount. maybe they will after numbers. presumably in closed season atm.

[spectoacc] 19/9/2016 14:08

Not convinced @MF, knowing the history of this co - remember how long they were on a massive discount when they had the huge ETO holding?

Wonder if discount is justified due to the small number of holdings - only takes a single p/w.

[gleach23] 19/9/2016 12:23

With most of the rest made up of cash?

I'm mulling over whether this share price drift represents a good top-up opportunity. There certainly seems to be a seller but the volume is only modest.

Reasons
- Discount to NAV is now around 35%
- In April N-E Chairman & N-E Director bought 25k and 27k respectively @ 183
- Yield is now approaching 6%

Anyone know why we haven't had Interims though? For at least the last 3 years they have been out end of Aug.

[cerrito] 08/9/2016 12:58

You are right mad foetus good news from BCA and Zeg in the last couple of days but without wishing to appear a party pooper remember that between them they only represent about half of MVI’s NAV.

[mad foetus] 08/9/2016 08:03

Decent results from ZEG and a reasonable directors buy reported today. BCA issued their AGM statement this morning - 4p final dividend and trading in line with expectations. Starting to look a little more positive.

[cerrito] 07/9/2016 21:54

I see that Zeg had a respectable share price increase today which for me well reflected the respectable first half out turn for ZEG but I guess no surprise that met with another fall for MVI.At least MVI will get £2m+ in cash dividends

[oregano] 06/9/2016 15:07

Zegona results tomorrow. Getting some traction there is probably essential to get MVI moving.

[tiltonboy] 06/9/2016 14:51

I gave the new IR guy both barrels a couple of weeks ago. He must have wondered what he had walked into.

I hope I don't regret having got back in, and understand why SKY has sold them...but I wouldn't describe BCA as tech!

[skyship] 06/9/2016 14:34

Didn't like the softening below 150p so decided to sell out of my small holding. Took 4days to sell a mere 10k, taking prices from 149p down to the last 2.5k @ 144p today!

A suspect a proper broker like Tilts would have sold them the first day at 148p; but I go solo with my online SIPP...

Good luck to all holders; but TECH isn't for me, so shouldn't have bought in the first place!

[mad foetus] 06/9/2016 13:36

They only started paying the divi last year. I think it may have been a requirement of the institutions that bought in at the same time. ZEG and BCA will pay divis but not enough, spesh as MVI is holding lots of cash atm I think. And WTAF if happening with GLOO?

[silkywhite] 06/9/2016 13:30

I don't think the dividend is sustainable out of earnings.

[silkywhite] 06/9/2016 09:58

I think someone wants out here.

Does anyone know anything about the dividend policy? Is it covered and if not is the plan to pay it out anyway. TIA

[spectoacc] 01/9/2016 15:55

It is a strange beast, & there's been a seller around for a while IMO, but the discount is keeping me interested.

[orinocor] 01/9/2016 15:50

thks - MVI is a strange looking beast isn't it? It calls itself Marwyn Value Investors but has a very concentrated portfolio of non-value type companies.

Not interested in buying at this level.

[luffness] 01/9/2016 14:56

Zegona Communications plc Ordinary 1p 45.64%
BCA Marketplace plc Ordinary 1p 32.91%
Marwyn Management Partners PLC 12.07%
Gloo Networks plc Ordinary 1p 9.38%

[orinocor] 01/9/2016 14:34

Does anyone have a NAV breakdown? What proportion is Zegona?