Little confidence in this management. They will benefit when the turn happens but won't be down to them rowing against the tide. |
Yes. I patiently await the upturn. |
When it turns it could become useful as tends to have waves up of a fair few months. Then at least momentum is the utility. |
Thanks - yes, agree with both posts above. I foolishly bought on behalf of a charity folio I help manage; only a small part of a diversified income folio, in which I hoped this would supply a growth element with a small income to be getting on with. Now I realise I should have bought JGGI.
:( |
If you look at it in terms of "what utility is this stock to shareholders" - the market has it right. What is "utility" to shareholders? Income and/or capital gain.
It is low utility to current investors.
Great utility to deep-tech needing funding & the management taking a salary.
Hope I'm proven wrong but money best allocated elsewhere. |
Basically what I am saying is that the market is valuing this correctly, whilst management is delusional.
Woodford made the same valuation error. |
Hi Bruce, I mean write the NAV down to a level that is more reflective of the current share price. If the market is pricing this at fire-sale prices then so be it.
In different times the potential here could attract a premium and in that case NAV could rise to mirror the perceived improvement in opportunities and possible exit prices. |
bamboo25 Jul '24 - 10:32 - 2974 of 2974
0 0 0
Bruce, closing the discount is really simple.
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Hi Bamboo, what you mean exactly? I probably misunderstand you but they're already buying back shares, which is one theoretical means of doing so is it not? I think they need to restate the dividend and find some tangible way to reward investors. Elsewhere in the market such discounts are eventually redressed by winding up the assets to return value to shareholders. |
Bruce, closing the discount is really simple.
Every day the free market gives us an accurate measure.
Management need to accept it.
The reason they don't accept it is that all their incentives and bonuses are linked to NAV rather than the share price. Acceptance of a market valuation would amount to 'turkeys voting for Xmas'.
There is therefore a fundamental divergence of interests between management and shareholders.
New and potential shareholders should recognise that the current management put themselves first. |
Yep and hopefully a good entry point. |
There's a lot of shots on goal with this one: |
Socionomics5 Jul '24 - 09:56 - 2970 of 2970
0 0 0
I've had this tipped today with a 100p+ target.
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Tell us more. Every man and his dog knows its cheap. Question is, how do they close the discount? Since axing the dividend they have also made it much more difficult for many investors to justify buying what is in effect a value trap. |
I've had this tipped today with a 100p+ target. |
Now at covid lows. |
Back to the bottom. But if you're happy to scalp, there seems to be a relatively straightforward 10% oscillation between here and 54p and could be some more, though you might need to wait six months for the share price to turn back up! This is surely the bottom of the base with 60p as resistance. |
I'd argue using this recent underlying company sale as an example, that the private portfolio should have had a 30 to 40% hair cut.Hence the NAV discount is closer to 15 to 25% per cent.Or Alternatively, they have sold a top 10 holding to a trade buyer without premium.RNS doesn't give exact details, such as holding period, total investment etc.But given, the hard work/risk/time/cost, of finding companies that make it. The share price will hardly react, as battle hardened, shareholders will probably just think, that they have just about broken even on this one. Relative to cash + inflation etc. |
Depends what they do with the cash. Certainly unlikely to be given to the owners of the company to get a better return on elsewhere. |
Don't disagree with that bjfanc but still a takeover at carrying value when you're trading at at something like a discount to NAV of 55% should surely be a positive! |
Selling at carrying value seems to either imply no takeover premium. Or a takeover premium is needed to match the carry value that they used... |
What is really needed is an activist investor to take a meaningful stake and start rocking the boat whilst pointing out that the company's officers are supposed to be acting in the best interests of its owners i.e. its shareholders! |
Gosh this is a very hated stock at the moment. Given that the shares are trading so far below NAV, you would think that announcement of the sale of a top 10 holding at around carrying value would be enough to cause a slight tick-up in the shares, particularly on a day when US CPI has come in below expectations causing bond yields to fall. But, no, down another 2% and c13% in the last two weeks. Hmm.
Anyway, we should get a trial readout from Istesso before end June for their RA treatment. This is their largest or second largest holding now - c7% of NAV and c23% of market cap so could be a meaningful positive catalyst - or, of course, a negative one.... |
AGM result
'Mounting unrest' those lily livered institutions voted 99% in favour of the Directors including the CEO AND Sir Flint ! Shame on them !!
The tanker ain't moving... |
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