Allied Minds Share Discussion Threads

[walterwhite1] 24/2/2021 19:33

yes I noted the same. Heavy buying today following on the Bridge com news.
Interesting that the share price was held in a narrow range.
I'm holding for 40-50p personally

[tole] 24/2/2021 16:54

Volume picking up with a few sizeable trades today

[snappler] 19/2/2021 21:08

hxxps://www.valuewalk.com/2015/09/allied-minds-plc-kerrisdale/?amp=1

Well... kerrisdale predicted the Spin memory Outcome in 2015 already! Hopefully they are Not right at Fedwireless.

[spectoacc] 09/2/2021 09:46

Something has to happen soonish - need to make Pignato's ousting count.

[buffettjnr] 09/2/2021 09:42

That’s a bit harsh.

But the reason that ALM hasn’t delivered anything despite being such an obvious candidate makes me concerned

[spectoacc] 09/2/2021 09:29

Def - market is nuts, now's the time to do it. If not now, then when?

[bobonumber1] 09/2/2021 09:22

Good idea. Or spac the lot.

[spectoacc] 09/2/2021 08:04

If Spin is really worth next to nothing at next funding round, why on earth not reverse it into a SPAC, raise money that way? No drain on ALM's cash, no worse dilution (probably a lot better), & a listed entity going forward to sell out of.

Current tech boom market would lap it up. And if it didn't - what's been lost?

[bobonumber1] 04/2/2021 11:40

Spin makes no sense. Reading the report from 29/10/2020. Certainly does not look dead. The appointment of Thomas Boone on the 14th of December 2020 as Vice President of defence and aerospace. Only then to lose the government contract 2 weeks later. Why make that appointment ?The following bullish articles in December :https://blog.executivebiz.com/2020/12/thomas-boone-elevated-to-defense-aerospace-vp-role-at-spin-memory/https://www.eetimes.com/spin-partners-with-arm-applied-in-mram-manufacturing/https://www.eejournal.com/article/spacing-out-with-spin-memory/Where these pod for promos

[bobonumber1] 04/2/2021 11:33

https://ny-creates.org/wp-content/uploads/STT-MRAM-Technology-and-Applications-Pinarbasi.pdf

[walterwhite1] 02/2/2021 10:38

No not huge director buys but better than nothing. Makes me feel good as i bought at 28p last week. B/e us now 36p so I’m happy. GLA!!

[spectoacc] 02/2/2021 09:34

A couple of director buys - which is nice - but neither massive, 38k & 24k (shares not £).

[red ninja] 28/1/2021 12:38

Personally I am selling stocks today.
I am worried about a US crash as stated by Jeremy Grantham (see link below) and it repercussions :-

hxxps://www.gmo.com/europe/research-library/waiting-for-the-last-dance/

[value hound] 28/1/2021 08:37

Bought a few here FWIW. The discount just looks way too deep with various exciting prospects - and a brief to realise assets and give us the cash back.

[kooba] 26/1/2021 09:05

On Spin yes has been very disappointing but with Edison perhaps indicating little value if as CA sees 5p per share can be rescued through refinancing or monetisation then better than nothing ! Nice idea with Federated but the company needs to demonstrate traction with new customers and revenue build , Covid has obviously not helped but many tech related companies are making hay in this period. It is essential that new Chair at federated gets some new urgency in the business as this will be the big determinant on future value whether by reverse or next funding round.

[spectoacc] 26/1/2021 08:50

Thanks @kooba, missed that. Hard to say how much influence CRS have - did like this bit:

On 15 January 2021, Allied Minds announced that its Chief Executive had "decided to step down from the board with immediate effect."


Speech marks CRS's.

If they get a SPAC reversing done for Federated, could really take off.

Spin is a sorry read tho.

[kooba] 26/1/2021 08:39

From yesterday commentary from largest shareholder Crystal Amber who I am sure were somewhat involved with recent board restructuring and hopefully moving the board to secure early value through monetisation of remaining holdings. Interesting stating the idea of a reverse into a SPAC, with way things are going in the listed US tech small cos could achieve a big valuation lift.Seeing decent upside on current levels on known info alone.Allied Minds plc ("Allied Minds")Following its initial investment in the fourth quarter of 2018, the Fund focused on securing a major reduction in the excessive parent company costs of Allied Minds: ongoing HQ expenses were running at an estimated US$17-20 million at the time. These have now been reduced to approximately $5.75 million per annum. In response to concerted pressure exerted by the Fund, Allied Minds ended its extraordinary practice of paying management 10% of gains arising from any successful individual investment, without taking account of the losses incurred on other investments in the portfolio (the "Phantom Plan").In October 2020, Allied Minds released its interim results and referred to the "underlying strength of the portfolio". Spin Memory was described as "the preeminent MRAM IP provider [...] transforming the semiconductor industry". Reassuringly, it was stated that "Spin Memory has made significant progress against its key operational objectives since its last funding round". Allied Minds'43% shareholding in Spin Memory, based on that last funding round, was valued at $77 million. This compares with its $44 million cash cost since 2006. In July 2020, Allied Minds invested a further $4 million into Spin Memory. Spin Memory's carrying value therefore comprised around 35% of net asset value. After 15 years, Spin Memory remains a "pre-revenue" business.Following this update, the Fund held detailed discussions with the board of Allied Minds and expressed its concerns.On 4 January 2021, Allied Minds announced that due to COVID-19, the required testing of Spin Memory's chip had been delayed for nearly nine months, that this delay had affected Spin Memory's ability to secure new customers and that as a result, this, coupled with an unexpected loss of a government bid in late Q4 2020, Spin Memory is now facing liquidity issues. The contemplated funding round is expected to be at a far lower valuation than its carrying value.On 15 January 2021, Allied Minds announced that its Chief Executive had "decided to step down from the board with immediate effect." Going forward, the portfolio will be managed by the three non-executive directors. The Fund welcomes the streamlined management of the portfolio, in which three companies comprise more than 90% of the latest reported carrying value.The Fund notes that the current 28p share price compares with an estimated 26p per share carrying value of the 36.6% holding in Federated Wireless together with parent company cash of 6p per share. Holdings in BridgeComm, Orbital Sidekicks, TableUp and Spark Insights are together valued at 12p per share. Whilst there is uncertainty as to the current value of the Spin Memory holding, the Fund estimates that at least 5p per share could be achievable. Overall, therefore, to trade at the Fund's estimated net asset value of Allied Minds, the share price would have to increase by 75%.The Fund expects the Allied Minds board to proactively seek to realise the inherent value of the portfolio in a timely manner and return proceeds to shareholders. It should be open to any structure that could achieve this objective including, if considered appropriate, reversing Federated Wireless into a Special Purpose Acquisition Vehicle (SPAC).Over the period, the share price of Allied Minds declined by 10%.

[kooba] 15/1/2021 08:43

The fact it states these NEDs will be joining certain boards , they will be joining as the corporate representative of AM and JP will undoubtedly be stepping down.Suspect staying on in Cfo capacity is largely regulatory pending replacement.Be interesting if there will be some more proactivity in extracting value from the portfolio especially major asset Federated , where again revenues have not met KPI targets which will be partly down to CVD. It's time for some realism and delivery of shareholder value not sitting back and letting things slip further.In the short term i guess whoever is given the poison chalice that is Spin has work cut out to try to get anything back for shareholders...not easy on where we are but hopefully i might be pleasantly surprised if there is an orderly sale process where we get some cash out.

[kooba] 15/1/2021 08:25

It is clear Pignato will be replaced on all investments where the company has a director representative by one of the NEDs who seem to have solid VC experience. Was hoping Lerdal would step up to an executive role, he was introduced by CA but is independent but did a sterling job of extracting value from Leaf Clean Energy a UK listed mess he took over and sorted where shareholders achieved a great result.

[kooba] 15/1/2021 08:19

Shareholders large and small can only go on official information.Joe was on the board of Spin so in the best possible place one would have thought to look after shareholder interests and keep stakeholders fully informed.In July the company committed more cash to Spin on unchanged valuation.In oct interim statement "Spin Memory has made significant progress against its key operational objectives since its last funding round."A few months later we now find it is well behind objectives and facing significant liquidity issues this is largely due to foundry being closed and the required chip testing being 9 months behind we understand. But due to the nature of the communication and subsequent Edison note we are being braced for a full write off...hopefully some value can be salvaged but it appears the company do not necessarily believe this is just a delay in extracting value from its over 10 years of funding this business it looks like they have turned off the tap.Must be more to this sorry tale but it is of significant concern as to who was overseeing investments.Look there could be a happy ending here but i think one needs to hold the management not the shareholders accountable!

[spectoacc] 15/1/2021 07:35

@kooba - was my largest position.

Pignato - why has he gone now? Shareholder pressure, maybe, but other shareholders didn't support CRS much when they tried to make changes. Are the rest of them waking up?

But my biggest surprise/concern - Pignato the key man at several investee co's. Says nothing in the RNS about him resigning from those. "Board Chairman, CEO, & Executive" at Federated, on the Board at Spin. Does he keep those jobs?

Edit:
"The Non-Executive Directors will be involved with each of the Group's portfolio companies. As such, one of either the Chairman, Harry Rein, the Senior Independent, Bruce Failing or the Non-executive Director, Mark Lerdal will each join certain Boards of Directors of such companies, including Federated Wireless, Inc., BridgeComm, Inc., and Spin Memory, Inc., to provide strategic guidance and support advancing the portfolio towards monetisation events."

Let's hope them sacking Pignato from ALM keeps everyone on good terms. But still a surprise.

But yes - a positive he's gone, even if just for costs.

[kooba] 15/1/2021 07:28

Confused at that comment , do you not think this resignation is due to shareholder pressure? It reduces cost base and to me points to a better alignment with shareholders in effecting monetisation policy. The CEO was ineffective and in my opinion awful at communications in particular IR .As to picking winners I thought you said this was your largest holding having done much research? All investors including CA can only form an opinion on disclosed information, if that information ie Spin proves incorrect then all you can do is effect change to improve the position and hopefully hold the board to account.