Ortus Vct Share Discussion Threads

[stupidboypike] 02/10/2012 07:32

timbo, that has to be the most helpful post by anyone on advfn ever!! many thanks.

Best regards
SBP

[timbo003] 02/10/2012 05:58

Hi SBP

Maven manage 7 different VCTs, as I suspect you aleady know: Ortus, Talisman and Maven Income and Growth 1,2,3,4 and 5. I hold shares in Ortus, Talisman, Maven I&G 2, 3 and 5, so I take a close interest.

The Manager has publicly stated (at the Ortus AGM) that it is now Maven policy to encourage the BODs on their VCTs to conduct so called "enhanced buy backs" or EBBs for up to 15% of the issued share capital. This is where the VCT will offer shareholders an opportunity to sell their shares back to the VCT at the net asset value and then the company reissues new shares from the proceeds at net asset value (plus circa 3%).

The end result is that the shareholder will lose around 3% of his or her shares but in exchange will receive a tax certificate worth 30% of the value of the new shares (based on net asset value, not market price), if a shareholder can repeat this process every 5 years, it is like receiving a 27% special divi every 5 years on top of the normal divis.

So far, 3 of the 7 Maven managed funds have announced plans regarding EBBs: Maven I&G5, Maven I&G3 and Ortus (confirmation required), I think there is a reasonable chance that within the next 2 years that Talisman will have an EBB, or they will merge with another Maven VCT and the merged VCT will do an EBB. Whatever the outcome, I think there is an odds on chance that the huge discount to NAV (currently 50%) will narrow to around 15%. I also think there is a very good chance that they will start paying a divi of around 1p - 1.5p / share (the manager has more or less stated that this is likely to be the case)

So, if you are a glass half full sort of investor, and have a 5 - 6 year investment horizon, the investment case could go something like this:

* Buy 10,000 shares for £2,500
* Wait for a tender offer
* Tender shares at 50p/share
* Receive tax certificate worth £1,500
* Collect divis for the next 5 years (5 x 1.5p) of £750
* Net investment at this stage: £250

then should you so wish

* Sell shares after 5 years for £4,120 (i.e. NAV - 15%)
* Net profit £3,870

This sort of strategy has been discussed at length over on the TMF VCT discussion board for Maven Income and Growth 5 (which trades at a narrower discount to Talisman, so arguably less attractive):


There are also current discussions on TMF for both Ortus and Talisman, where the merits of EBBs are also discussed:



Hope this helps

[stupidboypike] 01/10/2012 18:29

timbo,

Can you explain the above post in some more detail please? I'm doubtless being thick, but looking at the RNS's for TFV I don't understand the
Tender shares,
collect 15p from the tax man
or collect 7.5p in divis.
Apologies if I have missed the obvious ( I often do!).

Best regards

SBP

[timbo003] 05/9/2012 14:48

Lots of trading action in Talsiman VCT (TFV) over the last few days, Talisman is another Maven managed VCT trading a a >50% discount and it is now at last (after 12 years!) in a position to start paying divis. I think there is a very reasonable prospect on an enhanced buy back before long too.

So:

* Buy shares now for around 24p (as I did today)

* Tender shares at 50p

* Collect 15p from the tax man

* Hold for 5 years and collect 7.5p in divis.

* Net cost after 5 years around 2.5p

* After 5 years, sell shares for 40p or thereabouts (should you so wish) by which time company should have reinstated sharebuybacks (which they will probably do in 1 or 2 years time).

A possible 8 bagger after a 5 year holding period, but DYOR

[rivaldo] 05/9/2012 12:09

A little interest here this morning.

Espresso is valued at £2.8m, so accounts for 41% of the current m/cap! A deal would hopefully send the share price a lot nearer the 38.7p NAV for a start.

Discovery Networks are of course absolutely huge, so let's hope the Sunday Times are on the ball.

[tiltonboy] 04/9/2012 10:46

timbo,

lol...no.

Just 200k for me. I did try and pick some more up recently at 15.5p, but failed.

[timbo003] 04/9/2012 10:12

One more nugget from the Talisman VCT AGM last week (before I forget).

Apparently there are two large shareholders on the Ortus register, each with around 1,000,000 shares (just under 3%). One of these guys has previously blocked special resolutions on share buybacks (hence no current approval to conduct buybacks), but he is apparently supportive of tender offers/EBBs, the other big shareholders views on EBBs are unknown.

Bill is reasonably confident that they can get shareholder approval for a tender offer if the BOD agrees to do one.

Tilton, is one of the large shareholders you by any chance?

[rivaldo] 03/9/2012 12:37

Things may be about to get interesting according to this thread on T.M.F, with the Sunday Times noting that Espresso may be about to be sold:



"I attended the Talisman first AGM earlier today, I will endeavour to write up some notes later, but meanwhile one interesting nugget emerged regarding Ortus (and ProVen) concerning Espresso. Espresso is one of the big legacy investments (circa 20% of the portfolio). Apparently there may be trade sale imminent and this was reported in the Sunday Times at the weekend. The Sunday Times is only accessible from behind a pay wall and I'm too tight to subscribe, but there is an abbreviated abstract available here (open link and search by date):



Fortunately I have access to the article, so here it is:

"Espresso deal brews

Espresso, the digital education provider, could be about to change hands. The company has been working with Quayle Munro, the corporate finance firm, to find a buyer.

Analysts said the companies that could be interested in a deal include Discovery Networks, the American media group. Espresso was founded in 1997 by Lewis Bronze, a former editor of Blue Peter, the children's television programme."

[tiltonboy] 11/7/2012 20:08

Not me.

This has been a pleasing little investment, and I think there is more to go. The sale of the 4th largest shareholding at above book was encouraging, and probably explains the recent interest in the shares. An enhanced buy-back may be the next catalyst to a higher price, together with a further sale of a legacy holding.

[127tolmers] 11/7/2012 19:15

Anyone go to today's AGM?

[tiltonboy] 18/7/2011 16:10

Picked up a few more at 14p today. Spending my DGRE money, after tendering my shares at 115p.

[badtime] 08/6/2011 19:29

ye ...i rembr u paid a great price

[tiltonboy] 08/6/2011 12:49

Last bought on 7th April. Paid 13.5p

[badtime] 07/6/2011 21:16

took a few

[badtime] 19/4/2011 20:50

that u tilts picking up some more?

[rivaldo] 02/11/2010 09:01

Results out yesterday - NAV of 42p versus a 14p share price....

[rivaldo] 26/8/2010 15:12

Noticed this - Octopus have just invested £1m in Vyre:



"Octopus Capital for Enterprise Fund makes £1m investment into VYRE Limited
08.07.2010 14:28

FOR IMMEDIATE RELEASE, London, UK, 08 July 2010. Octopus Ventures (Octopus), a division of Octopus Investments, has announced an investment of £1 million from its £30 million Octopus Capital for Enterprise Fund (OCfE) into VYRE Ltd (the Company), a digital content and information management specialist. The investment represents the thirteenth deal Octopus has completed in 2010.

London based VYRE, is one of the market leading providers in storing and categorising digital assets. Its core product, VYRE Unify, provides sophisticated content management systems designed to build cutting edge websites and increase marketing and branding efficiency, whilst driving down costs and speeding up the delivery time. Investment from Octopus will help facilitate VYRE's plans for growth.

Paddy Woods Ballard, Associate Director at Octopus, commented: "VYRE is well positioned in a dynamic sector with strong growth opportunities. Its management team led by Andy Peters, are fully committed to driving and implementing VYRE's strategic plans for expansion.

"It is a well-respected forward thinking Company, trusted by a wealth of the finest brands including Virgin Holidays, Diageo, Shell, IMG Media and Nokia. More recently, VYRE's ability to manage websites on a grand scale was recognised when it successfully won business from sports specialist broadcaster, ESPN STAR Sports. We are delighted to be working alongside VYRE."

Andy Peters, CEO of VYRE, commented: "We are very happy to have Octopus on board. When we were looking for investment, we explored traditional bank finance but most were simply not prepared to provide funds, and the few that were couldn't offer the same level of flexible funding as Octopus."

Investment from Octopus was made via its Octopus Capital for Enterprise fund, a UK government backed initiative, which is specifically aimed at helping small, growing businesses obtain fresh liquidity during the economic downturn, at a time when the banking industry has been reluctant or unable to lend.

Peters continues: "Investment from Octopus is only the tip of the iceberg. They have a wealth of experience, and an impressive line up of portfolio companies, that we've already begun to speak to, which we are sure will lead to more business for VYRE moving forward."

Octopus is one of the UK's fastest growing investment companies, and now has over £1.6 billion1 of funds under management. Octopus specialises in working with entrepreneurs to provide funding solutions and invests between £500k and £5 million in companies across the whole risk spectrum, from early stage to buy out."

[rivaldo] 12/7/2010 11:22

Nice one Gelp (for sorting out the thread header as well as picking up cheap shares!).

Per the 7th July IMS ORT's NAV is 41.7p, only slightly down on the previous number:



Will have to do some more research on the private holdings.

[gelp] 18/6/2010 14:47

Ok done it thanks.remember you rivaldo few years ago as i went in and you wisely did not as went from bad to worse .the gtw management and previous showed very poor judgement. my hope is for a growing tax free divi at some stage and growth.That is what the experienced new team intend. i rashly picked up a few more at the lows as well!

[rivaldo] 11/6/2010 11:58

No problem Gelp!

Just click on the "edit" link next to your thread header post. You should find option boxes for charts and fundamentals which are unticked but already there. Simply tick the boxes, click to post the amended version, et voila.....

[gelp] 10/6/2010 23:40

Rivaldo:
Sorry:It may seem daft but i don't know how to put links (I can't use video, microwave or dish washer either) not proud of it - but I can turn a profit!

[pugugly] 10/6/2010 14:30

rivaldo: Nice find but I wonder what the profit was. Will ahve to wait for the full Ortus accounts.

[rivaldo] 10/6/2010 11:08

Hi Gelp. I've also been here since the old GTW days and bought a few more ORT around the lows. The discount to the 43p NAV is very large, but their largest unquoted investment, Vyre, appears to be doing very well, at least in revenue growth terms:



By the way, could you put charts and fundamentals in the header?

A link to the web site would be good too:

[gelp] 10/6/2010 09:24

Million shares traded last few days is definitely not the norm
I wonder if Managers are buying back further shares. They did last year.
VCT's are not your normal liquid stock but a merger again could reduce the spread, risk and management %. Or if dividend can be created giving (I believe) tax free income.
Note original ipo price for AGL was 100p and the estate generally shows some established stocks well below start values.
Gateway alone as VCT started life at 100 p with e technology and despite appalling performance for many years had a core of stock punished in the down trun. Vectura is one.OMG another. There is a very wide spread of risk of comopanies that have stood test of time now rather than a new VCT which are pure speculation.

[gelp] 09/6/2010 10:02

I will have a look as well at these major ones. If the valuations are sound & they must have gone through some diligence in the restructure then that is fine - but .......
There may be some assetts to outweigh the last p/l's to explain it all!
PS.
There is more activity today but since the merger there has been steady(for a vct) trades around the 12-15 mark.
Many of the trades show on www.plusmarketsgroup.com and not on advfn