Thanks both. Pink don't you mean the lower the discount? |
The share price says it all. Very little confidence in the board on show here. |
Change management incentives to align with shareholders - possibly related to reducing discount to NAV. The bigger the discount the lower the payout to management.
Return capital directly - some recipients will buy IPO stock, some will have better homes for it. Not everyone wants to see their capital used to buy more of IPO.
Current buyback is to assist volume holders to exit. Does little to reduce discount.
More proactively market the fund.
It's a boys club, very nice people, well educated, they love deep rich, cosy but no f'in use to shareholders that own the capital. |
Bagpuss, I am a bit short of time, but briefly, one of the fundamental problems with management is the conflict of interest between them and the ordinary shareholders.
Management incentives are linked to NAV, over which they have a sizeable influence. Shareholders are stuck with the market valuation, ie the share price.
Which is correct?
I'd say they need to look at their valuation methods in the light of the true valuation based on what constituents might be worth in the case of a complete liquidation.
The current official NAV is a management lie.
What can they do about it?
Accept the market valuation at regular intervals.
Share price can then find a premium/discount based on the last true valuation. |
Pink. They do regularly update on the website investment and company news and to the market at the usual times and they say they have engagement with major shareholders who wanted buy backs not dividends. The portfolio looks to be progressing well
Could you/ others spell out what are the major gripes with management? Sorry I'm new here and trying to get a grip of why sentiment is so bad. Clearly I get that the share price decline is pretty poor but what would you have them do about it? |
Comfy gravy train. |
Interesting. What would account for this lack of engagement? I looked at the profile for the CEO on the web site which has a space for insights and it appears his last one was over a year ago.... |
I missed this years AGM, too busy gardening! But last year in 2023, the CEO talked about communication and marketing, saying IPO was spending more time and effort on this. It was an important focus.
Well, excluding this years AGM the company has done NOTHING since Oct 2023 when it held a poorly attended ESG presentation, not a single report, article, promotion!
Where is the CEO ? Explain this please! Oh, and remind IR what IR stands for! Investor relations! |
A few further observations on this from Oak Bloke which some may find interesting. I did. |
Thanks for trying palisz.
I'll also email about results. Will let you know if I get a reply.
Fwiw, Tradingview had this morning indicating results. |
I asked them when the half year results will be released, they didn't answer.
I separately sent 8 actionable ideas to stop the sliding share price.
Again no response.
But I guess it's hard to read emails when hiding under the desk!
Lesson learned, a good CFO doesn't necessarily make a good CEO, totally different skills needed! IPO ! |
Half year results should be soon. 2 August last year. |
Question - how much 2nd guessing Reeves CGT plans accounts for losses being crystallised as soon as possible rather than in the early new year to end of March?
Those losses could be of increased value if they can be offset at 40 pc type future tax take in a new regime rather than under the current CGT regime.
Deep pockets tend to be consulted and tuned in before big changes occur, imho. |
Can IP Group management convince deep pockets this is investable? The answer so far is no.
No problem doing that to retail plebs. Lots of cheerleaders but market capital decay.
A sale to PE to run the fund down may be a convenient exit, better as a private VC vehicle?
Have posted that a long time back when the price was much higher than today. |
Some funds could have mandates not to hold a stock below some predetermined price.
What cost to consolidate to reduce the float and get the price up?
A 1 for 10?
It might bounce (better be a convincing bounce) but some serious damage looks to have been done imho.
Money could be trapped here a while before any new uptrend is confirmed.
Dyor, I'm often wrong. |
Buying back shares at a discount, particularly when its a 50% plus discount increases the NAV per share. This does enhance shareholder value...just a fact.
It doesn't guarantee to short term push up the actual share price.
But I agree the last few days have been brutal for IPO, and I can't see the reason.
I do think some private equity holders are using IPO as a way to hedge their positions. It's no secret many are in serious trouble. But if so, they are going to get double hit as IPO I believe has been very conservative in there valuations.
The 2h numbers are due anytime perhaps then the picture will be clearer.
I expect another down tick in the NAV, but not enough to change the long term potential. |
 I’m not sure what’s going on here, but IPO’s share price has tanked 15% [c.£65m wiped off] in just two days, including -9.7% today. I know the market is a bloodbath right now, but nevertheless I can’t see any justification to warrant a fall of this magnitude.
Perhaps IPO has been dragged down by ongoing US tech sell-off [tarnished with same brush]. Or maybe word is out that something nasty lurks in forthcoming Interims. Or maybe we are in the final phase of IPO’s long standing decline and from here starts the recovery [wishful thinking].
Whatever the reason [if any], I topped up again this morning at 37.5p, only to see it drop another 4% within a few hours. Talk about a horror show. As I write, the share price is now 36p [69% discount to NAV 114.8p]. We’re now at a level not seen since 2010/2011.
Come Interims, I’ll be honing in on NAV, cash, and any potential sales of assets in order to assess my target price of c.85p. It’ll be interesting to see if there has been a material slowdown in NAV decline, noting previous two years its fallen 14% and 20%. Needless to say, management need to stop the rot and instil some confidence in the IPO proposition.
I've done a very quick/rough breakdown of IPO's NAV [114.8p]. I'm going to assume gross cash has fallen from £235m to £200m [purely to make it a nice round number] = 20p a share. They own almost 10% stake in ONT = c.10p a share. So, based on today's closing price of 36p, leaves the rest of IPO's portfolio valued at just 6p, opposed to NAV 85p [93% discount].
Using an extreme example, even if headline NAV dropped by 25% to 86p, strip out cash and ONT stake, the balance of the portfolio would equate to NAV 56p, opposed to today's 6p valuation, representing a discount of 89%. Needless to say, something doesn't stack up here, either this is an absolute bargain right now or there is something seriously wrong with IPO's valuations.
The longer the share price remains at these depressed levels the harder it will be for the CEO to justify the £20m share buyback programme - neither has it enhanced shareholder value [in terms of putting cash in shareholders pockets], nor supported the share price [instead, suffered significant capital erosion].
And just to highlight the most eye opening fact of all - IPO has likely spent c.£10m [pro-rata] on buybacks since December, during which time the market cap has fallen by a staggering £200m. That's certainly not my definition of enhancing shareholder value. If management decide to continue with the buyback policy going into 2025 then I suggest they reinstate the dividend as well, they can comfortably afford to do both.
My investment in IPO is still in its infancy, merely just over a month now, but already it’s been a rocky ride. I can’t deny it’s been a disappointment to date but that’s investing for you, never plain sailing. In 12 months from now I’d like to think things will look a lot brighter for shareholders. |
That's what you call "get me out of here".
Volume with sell-off too.
Market appears to have little confidence in IP Group and it's management. |
aaubrey, are you having trouble putting what you want to say into words? |
Edison note out.
hxxps://www.edisongroup.com/research/novo-holdings-invests-in-oxford-nanopore/33847/?j=245033&sfmc_sub=13242396&l=715_HTML&u=7260386&mid=536001663&jb=1003 |
Still v quiet !!
IPO has about 95 employees! |
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