Berkeley Technology Share Discussion Threads

[twirl] 31/3/2004 12:47

Thanks Adam.

Just feeling a bit negative at moment and am actively challenging why I am still holding £30k in this co. The private VC is miniscule, PKTR is down and cash is being used up for admin. The only hope is access to LPAL assets.

I do feel we should know exactly what BEK view is on LPAL policy erosion and why a forecast mid Nov that ~$3m policies would be redeemed in fact 6weeks later it was clear that only around $1m had been redeemed.

Also we should be clear on how BEK can get hold of LPAL surplus assets. I had assumed it we be once all policies had been redeemed - maybe I was wrong. Hence my concern at the unexplained slowdown in policy redemption.

[cjatt0001] 30/3/2004 18:25

Webb site is BICC www.berkeleyvc.com/ - 5k - VERY ILLUMINATING?? -.

There is far more available but a great deal of searching required. Still thats the history. We are now a small VC company which does have potential unrealised value - thats my theory.

[adam] 30/3/2004 14:37

twirl - non distributable surplus still belongs to BEK, just that required to keep a surplus over regulatory capital to safe guard policy holders. All policies are laid off against bonds (government dead or most high grade debt) - hence once they mature - or are redeemed early - less reg capital required..

[twirl] 30/3/2004 14:10

Well I don't know Stew - pity BEK don't tell us whether and under what criteria such net assets can be conveyed to BEK! Seems pretty fundamental to the company but apparantly not to be shared with shareholders.

They certainly are unable to forecast LPAL policy maturity accurately as evidenced by Q4 - which should be a matter of fact. The longer the $28m policies are held by LPAL the longer it will be b4 any net asset is released to BEK.

Alternatively we do know that if LPAL hits problems BEK VC assets of $15.1m will be required to bale out LPAL!

[stewjames] 30/3/2004 13:58

NAV comprises around 40 cents per share in LPAL which cannot be accessed at the moment.

I assume at some future point that will change so the discount represents some kind of opportunity cost. I have no idea how or when this change will occur though!

[twirl] 30/3/2004 13:54

NAV comprises around 40 cents per share in LPAL which cannot be accessed.

So share price is in line with VC value of $15.1m.

Therefore I don't think it is particularly undervalued.

[hugepants] 30/3/2004 12:13

Does this company have a website? Cant find one on google.

[hugepants] 29/3/2004 22:14

I did note that the finals did state NAV of 69 cents per share which could only be derived using 51M shares in issue, not 64M. However this is not very clear to your average idiot investor. Anyway Im sure you are correct and have done due diligence since you have a notifiable stake. cheers.

[adam] 29/3/2004 16:42

No, the Trusts own the shares - But LPAL is in receivership and LPAL is not writing new policies - Hence no Agents - so ALOT (Agent Loyalty Option Trust) is defunct. Similarly ESOT (Employee Share Option Trust). This view was "unoficially" confirmed by someone hereabouts with Whitehead, but no - the company does not own the Trust shares. However I presume as it is still "owed" the money that the Trust bought the shares with in the first place - then it has got call over its assets. The above just an opinion. dyor.

[hugepants] 29/3/2004 16:06

adam, I read your(?) post on iii. Clears things up a bit more. I wasn't aware these shares could simply be cancelled (or at least the vast majority). A huge discount then if current NAV is approx 32p. NB. PKTR current price is $14.16

[hugepants] 29/3/2004 15:13

thanks. I assume that 'treasury stock' means the company owns these shares. Thing is I cant see these capitalised on the balance sheet anywhere.

[adam] 29/3/2004 15:04

Q4 PKTR $16.90 1m stock held
Price now $13.50 (?) -> ~ $3.50 -> $3.5m
Allow $1m cash burn
Deduct from Q4 NAV -> circa $30m -> 46 cents
-> 25p
However I would use 51m personally and regard the trust shares as treasury stock. In which case 58 cents -> 32p

[hugepants] 29/3/2004 13:29

NAV approx 55c, or around 30p, assuming 64M shares in issue? Is this about right?

[adam] 16/3/2004 18:31

don't think any "bad news" other than Packeteer getting mullered. PP is now so small to be of little tangible book in relation to cash/pktr.

[cjatt0001] 16/3/2004 12:42

Small Caps really taking a beating this morning - some of mine back near last years lower levels. Even my bookie is falling post the Festival. Futures are beginning to point to another run upwards - its the rollercoaster period.

[cjatt0001] 16/3/2004 12:16

Yes - clarify Holdontight - intrigued.

[stewjames] 16/3/2004 12:04

The private portfolio is already valued at absolutely nothing by the market. To send the price lower would be a bit harsh! What news are you talking about anyway?

[holdontight] 16/3/2004 11:38

possibly bad news on the ownership of private holding issue....if so we are headed much lower

[cmillar] 16/3/2004 11:24

likewise - I'll add to my ISA holding in a couple of weeks if the price stays at this level

[cjatt0001] 16/3/2004 11:17

No - spread has narrowed agreed - the sell drops .005p - perhaps some tree shaking in a selling market. We shall see. I am continuing to hold and will buy at this level.

[cmillar] 16/3/2004 10:21

anyone care to re-evaluate?

[twirl] 15/3/2004 17:57

Yes i agree cj. All sells and no price drop in a falling market - someone has an order to fill.

[cjatt0001] 15/3/2004 17:22

Selling at 14.5p?? No movement from MM's, does this suggest a buyer in the background. The FTSE has slid a few points and no move. We usally retreat when sentiment is poor. Any views?

[rivaldo] 14/3/2004 17:19

Well, seems like a few positive comments to take comfort from for a change, but still no specifics and still operating expenses continue to bite into NAV. Otherwise it's a case of carrying on and waiting for Alacritech etc to IPO....but Ceon's web site is up and running and looks good: