Ip Share Discussion Threads

[pierre oreilly] 21/5/2020 09:03

I'm afraid my estimate of 75% wasn't as close to the times' 41% as it seems. I meant the nano value was 75%, not IPOs stake (as I typed), which is much further out, but as I said, it was a very quick calc with an uplift to the last published valuation.Anyhow, I have lots invested here because on paper this is very undervalued even after allowing for an excessive discount to the illiquid investments ( and yes, many are duff, that's the nature of the business, one comes good for each 2 or 3 duffers, iirc there are a coupleish hundreds of companies in their portfolio). I'm getting really disillusioned with the management who seem unable or unwilling to unlock value for shareholders and have made some mega mistakes recently. (Even cwr imv, where a higher price could have been realised by a worked trade over a month to dribble the shares into a very strong cwr market). I'm beginning to think the directors' interests aren't aligned with shareholders'.

[bamboo2] 21/5/2020 08:51

Pierre, I think it would be better to make Invesco an offer for whatever percentage they are planning to offload. This would reduce the selling pressure.

The co is authorised to buy up to 10% without a special meeting.

[pierre oreilly] 21/5/2020 08:29

A £50m buyback would work wonders for the sharepice. IPO is an investment co., and the investment case while at such a high discount to cash and non cash assets should be compelling, even for IPO itself. Each million quids worth of shares bought buy about 2 mill of assets. The pure mechanics of buying say £1m per day for a couple of months would drive the price up, let alone increasing the assets per share. Bring on the buyback, an excellent return to shareholders in today's discounted valuation.

[empoggio] 21/5/2020 08:25

Any news/forecast on Nano flotation?

[pierre oreilly] 21/5/2020 08:15

Keeping such high levels of cash in the company doesn't do the shareholders much use if for whatever reason, the shares are out of favour, even at the massive discounts to assets. Each 10m cash in the company is worth 1p per share if paid out, yet 0.5p if held. With these high levels of cash realisations, there's plenty for reinvestment and for cash returns to shareholders. Soon they'll probably raise another hundred or so of mill from nano, and keep a big quoted share stake.

[bamboo2] 21/5/2020 07:40

CWR sale raises £52,062,500.

Cash generation now at £110m means co had already realised £58m, for 2020, so not far off my estimate.

[bamboo2] 21/5/2020 07:36

IP Group sells 12.25m shares in Ceres Power, cash realisations for the year now exceed GBP110 million

IP Group plc (LSE: IPO) ("IP Group" or "the Group"), the developer of intellectual property-based businesses, announces that it has sold 12.25 million ordinary shares in Ceres Power Holdings plc ("Ceres") at a price of 425 pence per share.

Following completion of the sale, which was conducted through an accelerated bookbuild by Berenberg as sole bookrunner, IP Group will continue to hold approximately 9.4 million ordinary shares in Ceres, representing approximately 5.5 per cent of the issued share capital of the Company.

The net proceeds from the sale of approximately GBP51 million bring the Group's total cash realisations for the year to date to more than GBP110 million (full year 2019: GBP79.5 million).

Alan Aubrey, Chief Executive of IP Group plc, said: "We're pleased to announce another significant cash realisation that brings total proceeds in the year to date to more than GBP110 million. IP Group remains financially strong and continues to take a prudent approach to capital allocation and operating costs in the current environment. The Group first invested in Ceres in 2012 and it is a great example of how we've helped to develop and support a world-leading company based on scientific research carried out in the UK."

[bamboo2] 20/5/2020 21:53

Re the discount, one of the reasons for the discount is forced sellers.

Last year Woodford led the selling in a chaotic and shambolic attempt to raise cash to feed redemptions.

A vicious circle ensued. Invesco has since reduced by half down to 15%.

For these reasons, a buyback would have more of a purpose than just flattering EPS.

Since the purchase of Parkwalk, management style has changed.

[dexdringle] 20/5/2020 21:32

I hope they don't do share buybacks - they are usually the kiss of death for the share price (witness Lloyd's Bank recently spending billions buying their own shares at 60p - now 29p and Royal Dutch Shell buying their own shares at over £20 - now £12). They only do this to try to artificially increase EPS to trigger director bonuses etc. Any spare funds should be used to pay dividends or properly invested.

[pierre oreilly] 20/5/2020 21:18

Or a special divi of 5p/share for the cwr cash. 5p outside he company, 2.5p inside. I hope the directors consider us shareholders in this.As to nano, I posted my estimate of floatable value last week (admittedly putting in 'ip's stake' instead of nano's value), and I'm not too far out I don't think.

[bjfanc] 20/5/2020 20:46

Buyback of shares , would make a lot of sense, given the discount.

[bamboo2] 20/5/2020 17:26

Will be holding approx 20% of market cap as cash?

[bamboo2] 20/5/2020 17:12

£51,700,000

They have cashed in co's to the value of at least £60m, so far this calendar year.

[pugugly] 20/5/2020 17:08

Further to 180 above - Estimates of value (ie. possible sale value) of Oxford Nano - NB in accounts at 31/12/19 fair value was estimated at £263.8 million.

Have been trying without muchsuccess to check TOTAL debt liabilities of IP - Can anyone give figure of liability?

[pugugly] 20/5/2020 17:04

Placing announced of 11 million shares in Ceres power - OK assume a discount to closing bid so guess receipt of some £49.5 million - views comments disagreement with calculation - nb closing bid 470p

[wetpantz] 19/5/2020 10:49

Clear Labs in US which has been using Oxf Nanopore machines in its automated food testing solution has developed a high throughput Covid-19 testing platform which overcomes the high false negative rates with existing tests. Expected to gain FDA approval within days.
hxxps://www.genomeweb.com/business-news/clear-labs-raises-18m-will-launch-diagnostic-nanopore-sequencing-covid-19-assay-system

[rambutan2] 18/5/2020 19:56

From piece on SUPP:

Broker Numis said Oxford Nanopore’s ‘real time, portable sequencing has been used to track the global spread of Covid-19 and in the future could be a core technology in global viral surveillance systems’, and that the company had emerged as a leader in its segment.

[bamboo2] 16/5/2020 13:19

Hi Brucie, thanks for your earlier reply btw.

Yes I am holding MWG too. The business model has changed completely.

Also from the IPO stable, I am currently scaling into GTC, and bought just a few DMTR

If Oxford Nano ever gets to market, I think it could be in the US.

[brucie5] 16/5/2020 12:56

bamboo2
16 May '20 - 11:42 - 174 of 175
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Bought a load more IPO at the end of this week.
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Well I've just bought a load of MWG... in the hope that it may do a more restrained version of AVCT. On the basis that Woodford 'saw' the opportunity, just a bit too early, I'm very much hoping that the same might be said of IPO in this case. Given your chartist tendencies, Bamboo, may I suggest you invest a little of your time over at the MWG board, where you can also quiz the Chairman, Gerry Brandon, who is simultaneously CEO of SKIN, which has a very significant agreement to supply reagents to MWG's machines. The latter, combined with SKIN's reagents have been in high demand since the COVID outbreak, since the virus is likely also to be water borne.

PS: not trolling you, but I see you've already cast a weather eye over this:

"MWG looking interesting. Price above 50/200sma's and heading for a Golden Cross towards the end of the month.

Breakaway gap support zone at 1.29-1.36"

Yes. But then look at the historical chart!!!!!

[bamboo2] 16/5/2020 11:55

TRX could be next to get the chop, unless IP Group decide to increase the holding, say, by purchasing the Link Group holding [19.98%] or a funding based dilution.

[bamboo2] 16/5/2020 11:42

bjf, agree on bad timing. Last results did flag up the decision to reduce the number of biotecs, where the holding was under 25%.

Bought a load more IPO at the end of this week.

[bjfanc] 15/5/2020 14:18

AVCT now up 7 fold in just over a month. So rough cost of decision by IP 15 million.Would like to see them justify their decision.

[brucie5] 14/5/2020 21:31

bamboo2
14 May '20 - 20:48 - 171 of 171
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Hi Brucie, what kind of signal are you waiting for?
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Double bottom at 40p. Though the historic bottom is 10p lower.
Yes, about Woodford; he got his timing badly wrong and got involved with too many illiquid shares.
But also I think IPO management timing on AVCT was extraordinarily inept.
I watch this because I think eventually it will rise from the ashes.