Ip Share Discussion Threads

[p1nkfish] 08/8/2024 06:09

TU reads well, increased buyback by £10M.
What about some cash?
Carry values most likely good so have little NAV concern currently.
Question is how best to reduce the discount? Same old question.

[bagpuss67] 07/8/2024 20:25

I thought they had consulted with major shareholders and agreed to the buyback program to try and address the NAV discount and return capital to them at the same time..

I have to say their website looks pretty good and informative to me

Maybe one step would be to get more broker coverage..

Palisz said that they had pointed out 8 actions to them. It woukd be good to see those.

[p1nkfish] 07/8/2024 20:12

I belive the NAV to be reasonable, the market may not.
My beef is with accepting the discount and not fighting to market the company to investors to help close it but rather sitting back or hiding until sentiment changes. Any one can do that.

[bagpuss67] 07/8/2024 20:10

Could you point me in the direction of the evidence for the NAVs being materially overstated? The last exit was at NAV. Are there notable exits below NAV? And I assume the audit processes at year end are not thought to be worth the paper they are written on?

[p1nkfish] 07/8/2024 19:41

BP, "The bigger the discount the lower the payout to management."
If they close the discount they get more bonus.

[bamboo2] 07/8/2024 18:07

Bagpuss, it'd be good, if you can make sense of it.

Management have lost some entitlements over recent years, but just granted themselves more in new arrangements!

[bagpuss67] 07/8/2024 18:03

Just taken a quick look at the share based payments section of the annual report. I don't think it could be possible to make remuneration more complicated. I will need to spend some time on that to work out exactly how much the execs are making if the NAV is say 25% over inflated..

[bagpuss67] 07/8/2024 17:45

Thanks both. Pink don't you mean the lower the discount?

[keyno] 07/8/2024 17:10

The share price says it all. Very little confidence in the board on show here.

[p1nkfish] 07/8/2024 16:39

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.

[bamboo2] 07/8/2024 16:04

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.

[bagpuss67] 07/8/2024 15:41

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?

[p1nkfish] 07/8/2024 12:25

Comfy gravy train.

[bagpuss67] 07/8/2024 12:15

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....

[palisz] 07/8/2024 11:53

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!

[bagpuss67] 07/8/2024 07:38

A few further observations on this from Oak Bloke which some may find interesting. I did.

[bamboo2] 07/8/2024 06:50

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.

[palisz] 06/8/2024 09:19

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 !

[bagpuss67] 06/8/2024 08:56

Half year results should be soon. 2 August last year.

[p1nkfish] 06/8/2024 08:27

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.

[p1nkfish] 06/8/2024 08:18

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.