Allied Minds Share Discussion Threads

[typo56] 22/1/2020 18:38

-12p perhaps

Best hope they don't go the way of PRP, which was ex 16p today but dropped almost 30p in the first 30 mins. Sloppy stop losses?

[itsnotmeitsy0u] 22/1/2020 18:29

well i bought in mainly for the div - a few k worth always keeps the wolf from the door

[spectoacc] 22/1/2020 16:49

Agreed, or at least a B-share issue to make the return one of capital. They can hardly claim to have been making profits!

A tender at say 80p would have been good - CRS may well not have taken it up, so could have got some over-allotment, & Invesco could have exited more.

Will see what tomorrow brings: -12p is my guess :)

[flyfisher] 22/1/2020 16:44

Yes indeed, a discounted redemption would have been my preferred option.

We still have a stock overhang.

[spectoacc] 22/1/2020 16:27

ALM turning capital loss into income tax loss isn't too bright, I agree. And presumably will keep doing same, with future realisations.

You'd be peeved if you held in a non-tax efficient a/c and had bought at the last placing, or even at float.

Mind you - the tax would be the least of your worries :)

[frazboy] 22/1/2020 16:16

To avoid tax?

[itsnotmeitsy0u] 22/1/2020 16:08

dont get why ppl are selling! one more day and they would get 25% divs

[flyfisher] 21/1/2020 11:06

Forbes recently did a piece on spin memory.



Any thoughts on the next asset to be sold ?

[bobonumber1] 20/1/2020 10:35

Talk of the "phantom seller " has been for some time now

[bobonumber1] 20/1/2020 09:28

Invesco would have been obligated to announce any sale so it can't be them. I have no idea where the large sells come from however.

[spectoacc] 20/1/2020 08:34

Decent buys, seller still around IMO.

Hoping for a "Thommo" before Thurs, but he's not the sharpest.

[nw99] 20/1/2020 08:15

Added here

[backinblack80] 19/1/2020 23:50

Thanks thwarnts, next stop £2-£5

[thwarnts] 19/1/2020 21:13

bid/ask 51p/60p not for me, GL guys here

[spectoacc] 19/1/2020 19:38

Can't see much point punting the divi, it'll surely fall most of it on XD day. The "punt" is that NAV is mid-80s, no new investments being made, LEAF guy now on the Board, big hope is that one or two of the remaining investments come good at figures well north of current NAV.

Just can't see much downside - time, certainly, but realisations would have to be way under NAV (particularly NAV post-XD) before the shares weren't worth buying here.

But I would say that.

[thwarnts] 19/1/2020 16:42

Is this worth a pure punt just for the special divi or am I missing something?

[spectoacc] 17/1/2020 18:41

Be interesting to see if any weekend coverage/tips. Touched 55p today, got an eye out for eg Invesco having sold more.

[williamcooper104] 17/1/2020 10:14

The Henley Hippo may not be such a great story

[frazboy] 17/1/2020 09:50

Ok, so essentially a wind-up, just a question of timing and returns. Thanks Specto.

[spectoacc] 17/1/2020 08:51

@frazboy - they're having it "realised", but at lower cost and with their man (who did the very successful LEAF job) on the Board. Is worth a read of CRS's RNS's on ALM. They called an EGM but withdrew the requisition when ALM Board bended ("bent" seems inappropriate ;) ):

" In light of
Allied Minds' appointment to its board of Mark Lerdal, the director candidate
proposed by the Fund (who has directly relevant experience of realising
shareholder value from a comparable US-based, UK-listed company), and the other
announced changes to the Allied Minds board and to executive compensation, the
Fund has formally withdrawn the requisition notice.

Actions such as the announced board changes and the focus on maximising cash
returns to shareholders - not least from the recent sale of Allied Minds' stake
in HawkEye 360 - demonstrate the value of Crystal Amber Fund's activist
investment approach.

Richard Bernstein, investment adviser to Crystal Amber Fund, said: "We have
always attempted to engage positively in a private manner with our investee
companies in an effort to effect change in the interests of all shareholders.
This is one of a small number of cases where we have felt obliged to take
public action to ensure that shareholder interests are being properly
considered. We are pleased that the Board of Allied Minds has engaged with us
and the outcome of this process is an acknowledgment that Allied Minds can do
more to maximise the realisation of shareholder value. We are also encouraged
about the progress we believe can now be made in this regard."


[Edit - "Realised" might be too strong a word, but they're making no new investments beyond supporting the existing ones, and previously said this:

"Joseph Pignato and Michael Turner, Co-Chief Executive Officers of Allied Minds, commented:
"We have made good progress since our appointment to implement our revised strategy of focusing exclusively on supporting our existing portfolio companies and maximising monetisation opportunities at the right time, while reducing ongoing annualised HQ operating expenses. "]

[frazboy] 17/1/2020 08:46

Specto - What are CRS trying to achieve, are they trying to have the company shut down and cash returned to shareholders or run more efficiently e.g. better governance and run for the benefit of shareholders, and excess cash returned to shareholders?

[spectoacc] 17/1/2020 07:05

In answer:

1. The former Woody holding in ALM was down to about 2% - isn't clear if they've sold it yet as may not have to report it below 3%

2. Invesco seem to be selling down many of their smaller holdings, and as you say, at this level they're seemingly unfussed at the price as long as it's near enough "market"

3. I expect the ALM share price to fall by less than the divi - but still fall by much of it. Based on discount.

4. I woke up in the night and realised - Simon Thompson is going to be all over ALM when he finally spots it. He had LEAF, he had CRS until moving to sell. Can't stand him, but he'll get round to spotting ALM and tip it big. Am convinced of it.

Can all his acolytes move the price? Not much, not with Invesco selling, but eg 250 buyers won't do share price any harm.

Edit - thanks @flyfisher, noted re write-offs, but the change to the Phantom Plan should have increased NAV. Also remembered CRS's original proposal to ALM:

"Crystal Amber suggests it could cut the annual costs of running Allied Minds by 70%. The fund also said that if it can sell Allied Minds' investments for more than 80 pence a share, it would take a 10% performance fee on any excess. "

Hope it's a good sign that they were willing to take 10% over 80p originally.

[flyfisher] 17/1/2020 07:04

Specto, ''Which still doesn't explain why CRS came down from "95-105p".''

They suffered two write offs and the phantom plan was renewed.

[geordieshores] 16/1/2020 23:15

I have the answer to my last question.I was on the Mereo Pharma board which is another former Woodford holding and somebody mentioned Invesco are selling there as well.Invesco (who of course Woodford used to work for) apparently copied a lot of his trades after he left because of his stellar track record. Now Invesco are selling many of their "copy" holdings, partly because of the embarrassment and partly for fear of similar liquidity issues.Sadly Invesco (and Link Fund Solutions and Schroders) do not care about getting value for fund holders. Invesco also have to consider the reputational damage of following Woodford into so many illiquid stocks whose price is tanking . The three of them are desperate to get out at any price.When these enormous overhangs are clear we may see rallies in a number of ex- Woodford stocks.Maybe the Woodford story will make a good movie one day a bit like The Wolf of Wall Street...

[geordieshores] 16/1/2020 22:56

A few people on here have mentioned that at Invesco are are sellers of Allied Minds.I know Link Fund Solutions and Schroders took over Woodfords positions.Are Invesco just another seller or are they related to Woodfords former holding?Appreciate any replies.