Chrysalis Investments Share Discussion Threads

[arja] 30/1/2024 09:26

maybe but not sure how reliable the figures are as hard to value most of the investments . However , the chart suggests there is more upside to come .

[donald pond] 29/1/2024 08:12

Stellar results and NAV now 143. This is just a stunning opportunity

[knowing] 23/1/2024 16:10

Klarna IPO

[rimau1] 23/1/2024 14:15

Good piece DP thanks for posting. You should take a look at TMT too, very similar deep value situation.

[spooky] 23/1/2024 13:40

That could be the end of Jupiter unless its double counting.

[donald pond] 22/1/2024 08:37

I wrote a thread on stockopedia about CHRY which I tweeted herehttps://x.com/donaldpond6/status/1749184305547424038?s=46&t=YfR7OyhMlqZLtI-h86iCxA

[rimau1] 17/1/2024 12:50

I've taken a maiden position here this morning. Big fan of Klarna and Starling and the valuation now looks very compelling. Nicely complementary to my holding in TMT (where the total market cap equates to Bolt which will IPO in 2025 and backblaze which is listed, 40 other stocks in for free!).

[davebowler] 12/1/2024 14:07

Analysts: Shonil Chande and Alex O’Hanlon

CHRY: Mkt Cap £399m | Share price 67.1p | Prem/(disc) -50.2% | Div yield n/a



Event

Each quarter Liberum’s sector teams list their most preferred stocks on a 6- to 12-month time horizon. Chrysalis Investments and Octopus Renewables Infrastructure were selected by the Alternative Funds team.

Chrysalis Investments –Core portfolio nears summit climb

CHRY’s investment case is underpinned by the potential for accretive stake sales/exits within the core portfolio, with Klarna and Starling Bank amongst the companies considered close to or IPO-ready. There is potential for further augmentation of returns via capital distributions. We have a BUY recommendation with a TP of 118p. Our NAV forecasts do not assume portfolio realisation events. The key upside risk to our view comes from exits achieved at valuations above NAV.

[donald pond] 19/12/2023 17:01

A couple of big trades around 4pm. Hopefully that's the seller exhausted

[donald pond] 15/12/2023 15:47

250k sales being absorbed. Looking good for a sustained Move up imo

[donald pond] 15/12/2023 08:41

Taken a nibble for all the reasons you sayUS second rank tech looks very strong. Can't be long before the IPO market opens up

[sphere25] 14/12/2023 14:15

Had a little go here at just under 72p.

It might be too early because of Jupiter, so a close watch and tight stop at under 70p.

It looks like the price is still being held back by a big seller. This type of risk on share moves alot more than this on the back of the US yesterday. There are others out there today like ITM and GROW that are moving double digit percentages higher or close.

Yes they are all different, and most don't bear correlation, but risk on is risk on with these sorts of shares - technical bounce or otherwise.

Yesterday there were three trades of 250k @ 70p and 1m @ 70p

Today there are blocks being dumped at 71.2p: 267k, 350k, 320k ,190k.

Also a 300k @ 71.55p and 250k@ 71.5p. The algos moved on the back of the latter.


The notable thing is that the market is gobbling up these big sells. It gobbled them up at 65p and now chomping through them and moving higher at 70p and price points slightly higher.

Ideally that big 20m plus block from Jupiter gets lobbed shortly and this goes screaming north. The algos will be all over it. Maybe they sell it in bits now into the market with the rest at a higher price point - not sure.

The price has a tendency to come back from recent intraday strength so it might be a quick exit and wait for the big dump too.

Don't know if that is going to happen, but a close viewer here.

All imo
DYOR

[sphere25] 11/12/2023 13:00

That must be Jupiter lobbing with just under 45m gone through at 65p.

They held 76,694,879 on the last disclosure, notified on the 13th September of this year, with the 13% threshold crossed on the 11th September.

Just typing this up and another 22.75m has gone through.

Looking for a possible trade here, but it really needs to break 72p. I think the 45m block has been picked up in pieces by various shareholders with someone taking 22.75m, but I can't decipher that properly - might be too early. Need to see more trades. If it is just 45m of the 76.7m they held, then clearly an overhang still in play.

Nonetheless, watching the book and any key price points on the chart to see if there is any movement on the clearing of Jupiter. If the market is willing to buy like this at 65p, then 65p could be the short term floor, even if it just farts around here.

Worth a watch.

All imo
DYOR

UPDATE: 12/12 13:19
RNS just out to show Jupiter have cut down to 27,472,035 so the 45m and some other bits have been lobbed but still a fair wedge left, if the lot have to go. The market isn't moving on price but watching in to see if the remainder get lobbed too.

[grahamg8] 06/12/2023 17:12

I rather agree riskvreward that it is just one holding, a pity. Of course if one holding can go at a premium then so might others. There doesn’t seem to be much going for continuing in business. Wind everything up near NAV and move on perhaps.

[bielsainvestor] 06/12/2023 13:42

Chrysalis Investments has said it has "visibility over a likely disposal” at a valuation that would imply an uplift of approximately 5.5p to its September-end net asset value.

In a stock exchange notice on Tuesday (5 December), the trust said the completion of the disposal, which is subject to conditions, is likely to take a number of months, with a further statement set to be made "in due course".

Ewan Lovett-Turner, head of investment companies research at Deutsche Numis, said the potential disposal was a "significant positive development" for the trust, which could deliver a 4.1% increase to net assets, or £33m.

Chrysalis' managers Richard Watts and Nick Williamson recently announced they would be departing from Jupiter Asset Management in March next year to focus purely on running the investment trust.

In the recent portfolio update, the trust did not mention what investment the potential disposal relates to, and Lovett-Turner said there was limited disclosure at this stage, with no press reports that might point to a transaction.

"We would expect future announcements to shed more light on the company, when disclosure restrictions allow," he said. "We currently do not know the level of proceeds that is expected to be delivered, with only the uplift to net asset value disclosed.

"We believe this would be well received by investors, although we note that the transaction is expected to take a number of months, and therefore it will be some time before capital returns will be considered."

Iain Scouller, analyst at Stifel, said the announcement might be to flag "some good news" ahead of shareholders making their decision on the trust's continuation vote set for the first quarter of 2024.

"Normally, such an announcement would be made when a sale had been agreed, with the company named and some timing given on when completion is expected," he said.

As of 30 November, Chrysalis had £32.8m of liquidity, including an £11.7m position in foreign exchange financial technology company Wise, the trust said in today's notice.

Lovett-Turner noted that with cash of about £20m, plus £12m in listed holding Wise, the potential transaction's uplift alone would take cash levels above the £50m buffer.

Above this buffer, the board is intending to prioritise distributions to shareholders, using its buyback authority, under its proposed capital allocation policy, he added.

[chris79] 05/12/2023 21:19

Agree..I expected more bounce, we are at a big discount to NAV and yet for at least one investment we should clearly be at a premium to NAV.

[riskvsreward] 05/12/2023 19:40

it reads to me like that it is selling one of the portfolio holdings at a price higher than its 30 September valuation by an amount that will lead to an increase of 5.5 p to the NAV per share.

[grahamg8] 05/12/2023 17:14

Am I reading the RNS right? There is a tentative offer to buy the entire portfolio at above NAV. Presumably from Jupiter. As shareholders we could see around 140pps in the next six months.

[knowing] 19/11/2023 20:13

Klarna gears up for IPO with UK-based holding company

[ny boy] 08/11/2023 14:50

For all your techies

Automatic technical analysis. Medium term, Nov 7, 2023
Chrysalis Investments Limited has broken the ceiling of the falling trend in the medium long term, which indicates a slower initial falling rate. The stock has broken a resistance level in the short term and given a positive signal for the short-term trading range. The stock is testing resistance at pence 65.00. This could give a negative reaction, but an upward breakthrough of pence 65.00 means a positive signal.
Recommendation one to six months: See Recommendation


Resistance 65p, 75p & 93p

Support remains at 50p

[bielsainvestor] 06/11/2023 15:46

Buy Now Pay Later giant Klarna strides towards $15bn float

The Stockholm-headquartered consumer finance provider is incorporating a new UK holding company in the prelude to a bumper stock market debut

[captain stock] 30/10/2023 11:15

Chrysalis Investments Limited Quarterly NAV Announcement and Trading UpdateSource: UK Regulatory (RNS & others)TIDMCHRYRNS Number : 6194RChrysalis Investments Limited30 October 2023The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than to professional investors in Belgium, Denmark, the Republic of Ireland, Luxembourg, the Netherlands, Norway and Sweden), Canada, Australia, Japan or the Republic of South Africa.30 October 2023Chrysalis Investments Limited ("Chrysalis" or the "Company")Quarterly NAV Announcement and Trading UpdateNet Asset ValueThe Company announces that as at 30 September 2023 the unaudited net asset value ("NAV") per ordinary share was 134.65 pence.The NAV calculation is based on the Company's issued share capital as at 30 September 2023 of 595,150,414 ordinary shares of no par value.September's NAV represents a 2.21 pence per share (1.6%) decrease since 30 June 2023.Movement in the fair value of the portfolio accounted for approximately 3.99 pence per share, with foreign exchange generating a favourable movement of approximately 2.01 pence per share. Fees and expenses make up the balance.Investment Adviser CommentsRichard Watts and Nick Williamson (co-portfolio managers) comment:"The NAV was broadly flat over the period, largely mirroring the performance of key equity markets. Notwithstanding this, the IPO market continued to show signs of life, with ARM listing in the US towards the back end of the quarter. We also note that Instacart and Klaviyo listed over the period and while their post-IPO performances have been mixed, we believe that this represents a step in the right direction. Private equity markets have also seen signs of recovery as the interest rate and macro-economic picture becomes clearer. Deal volumes are increasing from a low point in Q1 2023, and the tech sector remains key for PE.We consider both public and private exit routes as viable options. The portfolio contains a number of later-stage assets, either profitable or funded to profitability, that we believe will make very attractive targets in due course, with some considered "IPO ready". With this in mind, Klarna's comments in the period that the 'requirements have been met' to consider an IPO were encouraging to us.Our key assets are continuing to perform well from both an operational and financial perspective; this gives us confidence in the potential of the portfolio to drive NAV progression."Portfolio ActivityInvestment activity during the quarter was limited.In July the Company invested a further GBP6.5 million in Secret Escapes as part of a wider GBP31.7 million fundraise, supporting the refinancing of existing debt facilities. This capital will enable the company to accelerate marketing spend with a view to driving customer acquisition and ultimately growth. The company is already profitable, but it is hoped that the additional capital raised will result in a faster rate of growth and an even more profitable business in the near to medium term.Portfolio UpdateThe portfolio in aggregate continues to make solid progress against its financial and operating targets; this is particularly true across the core portfolio which consists of our later-stage assets:wefoxwefox continues to grow strongly and has demonstrated a clear roadmap to profitability. The Investment Adviser believes that wefox will be profitable towards the end of 2023, a target the company set itself at the beginning of the period and is well positioned to post its first full year of profitability in 2024.In the previous quarter, wefox announced that it had launched its global affinity business, which will connect insurance companies with partners that can distribute their insurance products. In recent weeks, wefox has announced that WINDTRE, Italy's leading telecommunications business, has signed a 10-year deal to launch the sale of home and travel insurance products in-store.On 1 October, wefox appointed Jonathan Wismer as its new Group Chief Financial Officer. Jonathan brings more than 25 years of experience in the insurance industry, having held senior finance roles at Zurich, AIG and Resolution Life. The appointment represents the company's continued strengthening of its C-suite as it steps up its plans for profitable growth and global expansion.On 24 October, wefox also appointed Mark Hartigan as Chairman. Mark was previously Chief Executive at LV and Head of Operations for Europe, Middle East and Africa at Zurich Insurance Group. He was Chief Executive Officer for Zurich Global Life in the Asia Pacific and Middle East region and led its regional business in Europe.StarlingStarling continues to benefit from an increase in yields on cash and debt securities, as a result of increases in the Bank of England's Base Rate, and this continues to drive interest income and profitability. Starling generates a post-tax return on equity of over 40%, making it, the Investment Adviser believes, one of the most profitable digital banks globally. Engine, the tech platform that powers Starling, offers the potential to license Starling's award-winning technology to financial organisations around the world.Starling announced that from 1 October, it will share the benefit of increased interest rates with its customers, by paying 3.25% AER interest on accounts balances of up to GBP5,000. Starling also offers a One Year Fixed Saver paying 5.53% interest on deposits between GBP2,000 and GBP1,000,000 that are held for a year. These represent extremely competitive rates of interest versus high-street banks.The Investment Adviser views these moves as consistent with Starling's brand values, as well as likely providing an incremental boost to deposit growth. Sharing the benefits of technology and scale with customers is a key enabler of growth, as has been seen in other portfolio companies.BrandtechBrandtech has made two acquisitions in the year: Jellyfish and Pencil AI. Although the acquisition of Pencil AI is smaller than Jellyfish, the Investment Adviser is excited about its potential. Pencil AI was founded in 2018 and is currently the leading AI creative and distribution SaaS platform. The company utilises Open AI's GPT family of large language models (LLMs) to generate content that is 10x lower in cost to produce but with a 2x uplift in performance.During the quarter, Brandtech launched Pencil Pro, an enterprise-level generative AI product, specifically created to meet the needs of global brands. This proposition could be significantly disruptive, and it is encouraging that Unilever and Bayer have decided to be launch partners.Smart PensionFollowing the announcement of its $95 million Series E funding round in the previous quarter, led by Aquiline Capital Partners, Smart has continued to execute its M&A strategy.During the quarter, Smart acquired Evolve Pensions, a leading provider of workplace pension services through its master trust, the Crystal Trust. Evolve has over 128,000 members and GBP750 million in assets. The acquisition of Evolve Pensions represents one of the largest master trust acquisitions of the year and makes the Smart Pension Master Trust (SPMT) the country's third biggest master trust operator. SPMT now has 1.1m members and GBP4bn under management while the group has a total of over GBP11bn under management.KlarnaKlarna released its first half results during the quarter which demonstrate sustained revenue growth and a return to profitability through the second quarter of the year.Gross Merchandise Volume (GMV) increased by +14% year-on-year (to SEK239 billion) while revenues grew by +17% year-on-year (to SEK5.5 billion). The Investment Adviser is encouraged by revenues continuing to grow ahead of GMV as it demonstrates Klarna's ability to monetise its existing customer base. Fundamental to the improved operating performance was the increase in gross profit for the period, which rose 83% year-on-year to SEK2.7 billion, driven by a 49% reduction in credit losses as a percentage of GMV.In the second quarter, Klarna generated an adjusted operating profit of SEK10 million which represents a material improvement in profitability year-on-year and the first full quarter of profitability since the Company's investment. To give a sense of how much progress Klarna has made, in the second quarter of 2022, Klarna's adjusted operating loss was in excess of USD280 million, which implies the company has moved from an annualised operating loss of over USD1 billion, into an annualised profit in the space of 12 months.Deep InstinctDeep Instinct continues to innovate and in recent weeks has launched 'Deep Instinct Prevention for Storage' (DPS). This new product applies a prevention-first approach to storage protection, wherever data is stored - Network Attached Storage (NAS), hybrid, or public cloud environments - and seamlessly integrates into existing environments to deliver unparalleled efficacy and accuracy along with enterprise-grade scalability.This is an exciting development in the industry given that the amount of data being stored in public and hybrid cloud environments continues to grow exponentially and a single infected file can put an enterprise at risk. As part of the Deep Instinct Prevention Platform, DPS fills gaps in data protection by applying a unique deep learning framework dedicated to cybersecurity. Whenever a file is added or changed in a storage environment, it is scanned immediately, and malicious files are either quarantined or deleted to prevent execution.FeaturespaceFeaturespace is a world leader in enterprise grade technology preventing fraud and financial crime. This is evidenced by a number of recent awards and product releases.As highlighted earlier in the year, Featurespace has developed a bespoke fraud transaction monitoring framework for NatWest that led to a +135% improvement in Natwest's financial scam detection rate and a 75% reduction in false positives. During the quarter, NatWest and Featurespace won 'Best Innovation by a Financial Institution' at the Datos Insights 2023 Fraud and AML Impact Awards for that specific initiative.More recently, the company has launched TallierLTM, the world's first Large Transaction Model (LTM). TallierLTM, a foundation AI technology for the payment and financial services industry, is a large-scale, self-supervised, pre-trained model designed to power the next generation of AI applications. The model has shown improvements of up to 71% in fraud value detection when compared to industry standard models.Cash UpdateAs of 30 September, the Company had net cash of approximately GBP23 million, subsequent to the follow-on investment in Secret Escapes, and a position in Wise of GBP10 million, to give a total liquidity position of approximately GBP33 million.The majority of follow-on investments have now been completed and most of the portfolio is now either profitable or funded through to profitability. While there may be additional funding requirements across the portfolio in the short to medium term, the Investment Adviser considers the Company has sufficient available liquidity to address these.Portfolio compositionAs of 30 September 2023, the portfolio composition was as follows: 30-Sep Carrying Value Portfolio Company (GBP millions) % of portfolio ---------------- ----------------- wefox 188.6 23.5% ---------------- ----------------- Starling 141.7 17.6% ---------------- ----------------- Brandtech 103.9 12.9% ---------------- ----------------- Smart Pension 79.7 9.9% ---------------- ----------------- Klarna 56.9 7.1% ---------------- ----------------- Deep Instinct 51.5 6.4% ---------------- ----------------- Featurespace 49.6 6.2% ---------------- ----------------- Tactus 29.0 3.6% ---------------- ----------------- InfoSum 27.2 3.4% ---------------- ----------------- Secret Escapes 25.0 3.1% ---------------- ----------------- Graphcore 16.5 2.1% ---------------- ----------------- Wise 10.3 1.3% ---------------- ----------------- Sorted 0.3 0.0% ---------------- ----------------- Gross cash 22.6 2.8% ---------------- ----------------- Source: Jupiter Investment Management Limited. Due to rounding, the figures may not add up to 100%. The above percentages are based on an aggregate portfolio value (including cash) of approximately GBP803 million for 30 September 2023.OutlookThe Investment Adviser remains optimistic about the prospects for the Company. As noted in the last NAV update, IPO and private markets have shown some signs of life, which is an indication that investor risk appetite is recovering to some degree.The Investment Adviser remains focused on helping the portfolio companies get to a position where they can "exit" and considers a number of assets "IPO ready". It is intended that any future realisations flow through the proposed Capital Allocation Policy that was outlined to shareholders on 13 October 2023. The Investment Adviser believes this policy would be an essential mechanism to help unwind the current share price discount to NAV.FactsheetAn updated Company factsheet will shortly be available on the Company's website: https://www.chrysalisinvestments.co.uk-ENDS- For further information, please contact: Media [phone] Montfort Communications: [e-mail] Charlotte McMullen / Toto Reissland / Lesley Kezhu Wang Jupiter Asset Management: James Simpson [phone] Liberum: Chris Clarke / Darren Vickers / Owen Matthews [phone] Numis: Nathan Brown / Matt Goss [phone] Maitland Administration (Guernsey) Limited: Chris Bougourd [phone] LEI: 213800F9SQ753JQHSW24A copy of this announcement will be available on the Company's website at https://www.chrysalisinvestments.co.ukThe information contained in this announcement regarding the Company's investments has been provided by the relevant underlying portfolio company and has not been independently verified by the Company. The information contained herein is unaudited.This announcement is for information purposes only and is not an offer to invest. All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results. Neither the content of the Company's website, nor the content on any website accessible from hyperlinks on its website for any other website, is incorporated into, or forms part of, this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.ENDTSTFEIFDUEDSEFS(END) Dow Jones NewswiresOctober 30, 2023 03:00 ET (07:00 GMT)

[arthur_lame_stocks] 03/10/2023 03:18

I don't know if this article is of interest to anyone, but I wonder if a float of Starling isn't on the cards soon.