|Hi Rivaldo,Yes, I like the opportunity to spread across a number of biotech opportunities with one vehicle AND remain hopeful that the discount will narrow and provide a boost. The DBC holding could soon outstrip SUMM after the IPO/reverse into LIFE.It's notable that over the last year the PEBI holdings have been skewed away from Quoted towards Unquoted. That's fine by me as doubtless JM will continue to be offered pre-IPO opportunities that we don't get a sniff of.Regarding JM I am unsure of his overall quoted investing track-record though he must do somethings very well to have amassed his fortune. SUMM has finally turned again into profit for me; I never got serious about holding PLE individually as it seemed burdened by execution uncertainties.Cheers, tightfist|
|Hi tightfist. Thx for the NAV info - the discount to say 10.64p NAV still looks too much at present imo, though it's natural there should be some discount.
On a £1.95m m/cap I just like the "option" element that any one of a number of investments could cause a multibagger here, whilst retaining some form of security by being invested in a portfolio rather than singly in SUMM, or DBC or whatever.
I certainly don't track JM's investee companies - AFAICS he seems to have an extremely, erm, "mixed" record as an investor/NED!|
|Hi Rivaldo,IMO the NAV at yesterday's close was about 10.64p taking into account the positive shifts in SUMM and HKD strength.Digging a little deeper it looks as though PEBI has progressively sold-down it's SUMM holding from 296k to 145k over the last nine months - worth checking my calcs. If I am correct it's rather a shame because IMHO it still has a lot of upside potential - the weighting (now 9%) of SUMM was one of reasons I liked PEBI. IIRC JM resigned from the SUMM BoD last year but remains a major shareholder.Incidentally, I think DBC was bought at £13.37 per share. I have a note that these were later revalued later to £23 but I cannot find the associated RNS.Cheers, tightfist|
|Hi Rivaldo,Some muted interest in PEBI this morning; no news on the elimination of the discount.....The reverse takeover of DBC by LIFE is most welcome. I chatted with DBC at the Investor show a couple of years ago; their product struck me as a sure-fire winner on first acquaintance, but with no pre-IPO investment opportunity. We will see some numbers soon but I anticipate a substantial valuation uplift to the £95k seed funding in due course.I wasn't previously aware of LIFE; as a strategy do you track companies where JM is an NED, etc? LIFE seems to have been valued at cash two weeks ago and made it clear that an acquisition was imminent - seems like it was a good entry point?Cheers, tightfist|
|NAV at 30/9 reported this morning at 9.96p per share, up from 9.28p:
And that excludes the uplift this month from SUMM, plus any uplift from DBC's upcoming reverse into LIFE:
"The Net Asset Value ("NAV") calculation for the Company as at closing on 30 September 2016 was 9.96 pence per share, including un-invested cash of GBP12,921. The portfolio is valued under IFRS at bid price.
Net Assets stand at GBP2.35 million including Investments of GBP2.33 million. This quarter's NAV represents an increase of 7.33% from the previous valuation of 9.28 pence per share, which included un-invested cash of GBP11,985. No additional management fee is due to Shellbay Investments Limited.
The reported NAV to 30 September 2016 gained mainly due to an increase in the value of the Magna Biopharma Fund investment. The Company's three principal investments continue to show significant growth prospects for 2016 and beyond. In particular we note the positive news from Summit Therapeutics plc ("Summit") on 4 October 2016 that it had entered into an exclusive licence and collaboration agreement with Sarepta Therapeutics for Summit's utrophin modulator pipeline."|
|More good news today - in late'15 PEBI invested in £95k in the Diabetic Boot Company.
Today's RNS from LIFE (shares currently suspended) indicated that DBC will be reversing into that company and floating on AIM:
I'd imagine that the new valuation will be substantially above cost.|
|Hi Rivaldo,The PEBI quarterly NAV update later this month should make pleasant reading. It would be even better if there is also the plan to eliminate the discount, it's a long time coming!Cheers, tightfist|
|FYI a poster elsewhere believes PEBI own 377,654 shares in SUMM, which would now be worth £955,000.
Looks like PEBI are well undervalued at the current price assuming SUMM holds its new levels.
EDIT - just noticed that the SUMM holding was worth £218,291 at 30/6/16:
Since SUMM's price was around 108p at that point, that implies a holding of around 200,000 shares, i.e now worth £500,000.|
|No probs. SUMM finished at around 250p, so the holding is now worth some £660,000.|
|Nice thanks for that. Still hold a few here.|
|Huge deal for SUMM this morning - and their share price is up 40%.
I can't see how many shares PEBI own in SUMM anywhere. The only clue is the potentially 5.3m shares in March'13 in the thread header, which would have become around 265,000 shares post 1 for 20 consolidation.
So the current SUMM stake would be worth almost £500k at the now 180p.|
NAV as at 31st March 2016 RNS'd this morning as 10.21p. The rise in SUMM since 31st March is worth around 0.4p.
All other things equal, we are currently trading at about 42% discount. I want to see the plan to eliminate that discount, that was mentioned recently!
|The 15.8p looks very out of date and appears to be the value of the tender offer back in Jan/Feb 2015.|
|Nice work tightfist
15.8 looks excessive|
Thanks for your great post drawing attention to PEBI and deconstructing it, especially DBC. It's a real shame that PEBI does not have the cash to take a larger position in DBC; it looks as though Regent Pacific is the new kid on the block to gather-up Jim's latest investment ideas?
The RNS on 17th March caught my eye with the "significant promise" of eliminating the discount and I topped-up.
I maintain a PEBI NAV spreadsheet, and as of last night's closing I make it 10.62p for a discount of 53% - that assumes almost 120m shares in RP and DBC valued at £23.00, and the rest of the anonymous Quoted and Unquoted holdings at 31.12.2015 valuations. At this moment I make it 10.88p and a 43% discount.
Can you please review your 15.8p figure; at that figure and 68% discount it would be a real steal - 50% discount has become the depressing norm, at least for the time being!
|Cheers Colin, great post. This is a relatively small holding of mine, so I don't follow too closely and your summary is invaluable.
With a £1.6m m/cap any winners should mean considerable upside here. Maybe it's time to top up.
Where did you get the 15.8p NAV from please?|
|For those unaware, Port Erin Biopharma’s Net Asset Value surged overnight following some spectacular developments in its portfolio companies:
• Summit Therapeutics: Its NASDAQ traded stock (SMMT) shot-up by 92% initially before settling at 52.8% following a further detailed update on the hugely significant FDA clearance. Its lead drug candidate Ezutromid, worth over £600m if commercially successful, has been granted IND status, thereby paving way for a Phase II proof-of-concept trial across the U.S.
From a historical perspective, and in 69% of cases, this type of FDA clearance has often led to commercial success – hence the share price surge in New York. And as the reality continues to set-in, expect further rises to follow.
• Magna Biopharma Income Fund: Over the last fortnight, the value of the fund has been substantially enhanced (24.3%) following strong rises in its Dexcom, Novartis and Lannett Co. holdings.
• Regent Pacific Group: Last week, RPG announced that it has entered into a binding Term Sheet with DBC (Diabetic Boot Company) in respect of a conditional subscription for up to 130,434 new DBC shares (and 65,217 Warrants) for an aggregate consideration of up to £2,999,982. This will represent approximately 33.10% of DBC! Put simply, the company is now in full control of PulseFlow Technologies.
And at the last valuation in July 2015, DBC shares (privately held) were valued at £13.37 per share. Last week, the shares were valued at £23.00; an 80.5% increase in just 9 months! The company hopes to float on NASDAQ in the short to medium term. Click the ‘download report’ for the full analysis in the GECR link below.
With an updated NAV of 15.8p (and rising…), hold on to your shares; the re-rate is underway.|
|Anyone got an idea of the current NAV here? Big fall yesterday and very little recent news or trades - how is the portfolio doing?|
|Jim Mellon used to own around 5.7% of Source BioScience (SBS) back in 2008/9
Source BioScience PLCMajor ShareholdersShares in issue:203.8m2p
Jim Mellon 11,650,000 5.72%
He sold them early 2010, I think from memory|
|Jump on low volumes this morning before further volume and some selling was attracted. Even at 8p we are still well short of the c. 11p NBV without factoring the upside in NBV when Plethora takeover is factored in at more than twice the current share price. Guess we are looking at a resultant 12p NBV then.|
|So, the PLE deal is going through with Regent Pacific. By my calcs. based on last night's close, PEBI is still on a 40% discount with the PLE LSE price (and 50% discount if you swallow the 11.65p valuation in RP shares).
Only one snag - I really don't have space for any more PEBI in my portfolio..... Key Question: What is the future of PEBI? Will it get wound-up at NAV at some point in the future when JM wants to rationalise "his" companies? That's my hope.
|Soooo quiet here!
Well, we have JM et al bidding for the 70% of PLE that they don't already have. By my calcs that puts about 3.1p onto the 30th Sept PEBI NAV and the discount has widened from 25% to 40% overnight. Yesterday we saw just 37k (£3k) of declared trades.
Summit isn't looking too sparky right now.... How will the PEBI story end?
|The pain continues, discount now stands at ~31% which seems to be getting silly, even for PEBI.
I wonder if there is the remotest chance of an initiative for JM and Co. to make an offer for the entire capital? I think I saw that he wants to start-up something new in BioTech? If so, the remnants of PEBI could be an embarrassment?? Maybe that would create other problems for JM on individual holding levels.
Just a thought!|
|Well, well.... we are straight back to running at 24% discount, based on live UK prices this morning (SUMM on AIM is trailing SMMT on NASDAQ by 4%). One wonders what the next initiative could be to reduce the discount.... As predicted, the last one wasn't sustainable.|
|Quite a few available to Buy at 11.9p. I had a nibble, trade not showing.....|