Hipgnosis Songs Share Discussion Threads

[laughton] 28/3/2024 11:53

Maybe my calculator is misfiring but I make the NAV now a shade over £1.50p per share.

If I'm correct then that's quite some cushion - even though they're not paying a dividend for the forseeable.

But someone please tell me where I've gone wrong, if I have

[cynicalsteve] 28/3/2024 10:54

Currently up 8% after an announcement that confirms the previously announced NAV estimate. I suppose the lesson is never assume that news (good or bad) is already in the price.

[tonysss13] 28/3/2024 09:06

Hipgnosis Songs Fund Limited ("Hipgnosis" or the "Company")

Final Due Diligence Findings

The Board of Hipgnosis Songs Fund today provides an update on the findings of the due diligence that has been conducted on the Company's assets as part of the Strategic Review.

The Board appointed Shot Tower Capital, LLC ("Shot Tower") as lead adviser to provide an independent valuation of the Company's assets. On 4 March 2024, the Company announced that Shot Tower had provided the Board with the preliminary valuation report, as at 1 March 2024, which estimated the fair market value of the Company's Portfolio at between $1.80 billion and $2.06 billion.

The Board has since received Shot Tower's final valuation report, which confirms that, based on their due diligence and analysis, the fair market value of the Company's portfolio is $1.948 billion, which represents the midpoint of a final concluded range of $1.83 billion and $2.07 billion. This represents a multiple of trailing 12-month net cash revenue after royalty and administration costs ($121.7 million) of 16.0x as of 30 June 2023.

A summary of the findings of the due diligence can be found on the Company's website at www.hipgnosissongs.com/song-investors/. Shot Tower's report contains references to separate legal and financial due diligence reports completed by Reed Smith LLP and BDO USA, P.A., respectively.

The Board with its advisers continues to assess all options for the future of the Company. The Board will announce the conclusions of the Strategic Review, which will include proposals for the future of the Company, by 26 April 2024. The Board intends to seek shareholder approval for such proposals at an extraordinary general meeting as soon as practicable thereafter.

[nil of] 19/3/2024 08:08

How is blackstone not on the front page of the FT for this. It’s always hipgnosis management company but it’s Blackstone. If this was an Aberdeen fund they would be the headline

[cynicalsteve] 18/3/2024 09:44

SONG has gone from an accident waiting to happen to an accident that just keeps on happening. I treat every bad investment as a learning opportunity, I think this one will earn me a degree in Stupidology because I was always suspicious but still invested a small amount to 'diversify' my investments.

[misterd1] 18/3/2024 08:07

So, so basic

How was this not spotted before?

Where was the whistle blower as surely someone down the chain would have noticed this as well.

[cousinit] 18/3/2024 08:00

Negligence anyone? I'm sure that might get a mention in the IMA clauses

[scepticalinvestor] 18/3/2024 07:47

Good grief, condolences to holders.snake oil comes to mind

[unastubbs] 18/3/2024 07:45

I'm going to hold on to the bitter end. It's not a life saving sum for me either way and i've kind of written it off. I'm stepped in so far, that, should I wade no more, returning were as tedious as go o'er...

[unastubbs] 18/3/2024 07:39

it's really beyond basic. it's utterly indefensible. reputation totally shredded...to think i bought this share as a kind of bond proxy, sleep at night investment! no income, capital in bits. what a choker!

[cc2014] 18/3/2024 07:36

Uninvestable. This is basic stuff

[grahamg8] 18/3/2024 07:25

Train wreck continues.

[unastubbs] 18/3/2024 07:21

Lower lows today. I can see sub-50p at some stage this week.

[spectoacc] 18/3/2024 07:09

So it wasn't even the kitchen sink.

[purplepelmets] 18/3/2024 07:06

Starting to look criminal

[unastubbs] 18/3/2024 07:05

www.londonstockexchange.com/news-article/SONG/amendment-to-operative-net-asset-value/16381093

AMENDMENT TO OPERATIVE NET ASSET VALUE

The Board of Hipgnosis Songs Fund is providing an amendment to its Operative Net Asset Value ("Operative NAV") following identification of an error due to the double counting of accrued revenue in the calculation of Operative NAV by Hipgnosis Song Management Limited (the "Investment Adviser"). This error results in a 7.6% reduction in the pro forma Operative NAV per Ordinary Share from $1.1657 (92.08 pence) as stated on 4 March 2024 to $1.0765 (85.03 pence).

[cousinit] 09/3/2024 11:05

I think as someone pointed out that Hipgnosis are remunerated on market cap. It's another way of passing pain on to them if the Board err on the glass half empty side.

Key is whether Blackstone decide they want to resolve this (fairly) amicably. Risk is they may decide it's not worth the candle and exit the sector.

[jeffian] 05/3/2024 22:42

Well you say that, but Merck has been creaming off fees from SONG and has also received money from Blackstone for a share of his management company. What a scamp*, eh?


Edit: *You can decide for yourselves whether that 'p' should be there or not.

[williamcooper104] 05/3/2024 15:07

Yep - the plaintiff has secured litigation funding so clearly the case has merit You'd hope that the liabilities were contained at the management vehicle; but they'll go after SONG as that'll be where the money is

[jeffian] 05/3/2024 14:52

I doubt there'll be any spectacular recovery in the sp, if at all, even if the market accepts the new NAV. There is still the issue of the litigation hanging over their heads (that is, the Hipgnosis fund and quite separate but confusingly similarly-named Hipgnosis management company being sued for pinching the idea (and name?) from...errr...the original Hipgnosis company of which Merck still seems to be listed as a Director. You couldn't make it up!). Until there is some clarity on the potential liabilities there, I imagine the share price will go nowhere much.