Ip Share Discussion Threads

[bamboo2] 15/6/2020 21:07

Hi p1nkfish, I use the high [263.9] from 21/9/2015 as the top of the dominant upper downtrend line. Price has closed above the line a few times, but has currently dropped just below again. A lasting trend change seems close now.

What measure would you use to see the change confirmed?

[p1nkfish] 15/6/2020 09:18

The downtrend from April 2017 is still intact. Swings useful but chart suggests trend recovery from that point not in place yet.

[bamboo2] 14/6/2020 20:27

You can register here for the AGM [webinar] next week, and also forward questions in advance.

Here's your chance dex and Pierre!

[wetpantz] 13/6/2020 22:51

Aubrey is on the Nanopore board so hopefully understands the value of the business. As for the £200+M IPO is sitting on, it does make sense to hold it for now in case there are attractive opportunities for further investment in biotechs, many of which are making astonishing accelerated progress in the COVID environment. Biotechs will be the hottest M&A and IPO sector once the markets calm down. There are unimaginable sums sitting in cash currently waiting to be deployed.

[pierre oreilly] 13/6/2020 18:55

If I hear the letters 'mbo' I'm going to be quite annoyed. It wouldn't surprise me.

[pierre oreilly] 13/6/2020 18:43

Bamboo, I intend to do exactly that, sell up, due to no confidence in the management (not their investment abilities, but their lack of alignment with shareholders' interests). They appear in the way they act to be very old school and anachronistic, as if shareholders should feel privileged to hold them and expect nothing more. It wouldn't surprise me if they all had sherry every afternoon between lunch and 5 pm.

I'm just waiting for an opportunity to sell when the price reacts positively to something - the nano float being the most obvious.

I had another thought about the cash balances - wtf do they do with it on a daily basis? There are probably 3 bods shifting it around, but with interest rates near zero, I doubt the interest covers a tenth of their no doubt very high salaries and bonuss.

I understand dex's view that the poor share price isn't fully the technicals of woodford's lot being sold - i think there is an element of out of touch old school management also playing its part.

What is your view bamboo on the high cash balances within the company being worth 30pish, when they could pay some out where they're worth a quid? Put another way, at 60p, if they paid a special of 20p, the share price would drop to 53p, being a 13p pure gain to shareholders (i.e. a 20p cash gain for a 7p loss in co value). I think the only reason this isn't done is because the management want to keep control of the 150m or whatever, and not just say 100m of it (at the high cost of shareholders). What's your (or anyone else's) explanation?

[bamboo2] 13/6/2020 17:24

dex, if that's what you think, what are you waiting for? Sell up, take the loss and move onto a better bet!

[dexdringle] 13/6/2020 16:48

It is likely that the discount to NAV here is more to do with the lack of confidence in the management. We can only blame Woodford forced selling for so long.

If £1 coins here really can be bought for 30p each then something isn't right. Stewardship of the assets is an issue.

[brucie5] 13/6/2020 15:57

dexdringle
13 Jun '20 - 13:19 - 282 of 283
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.....but the 'rest' is probably worthless (or at the very least difficult to value) so best case scenario is that the two main holdings + cash might be the same as the current market cap. Not exactly Christmas is it ?
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Dex, Difficult to value is certainly not *valueless*. And I thought the point of investing is to seize opportunities to buy assets which the market has not adequately appraised...?

IPO is among the very few shares that I would consider safe to average down... partly because of that very discount... partly because it has so much cash... and partly because its crown jewels (as discussed) have just not appreciated in value in line with their peers in the listed market.

But it may fall further... or just take a lot more time to rise.

[pierre oreilly] 13/6/2020 15:19

That's not true at all dex - they have a few other quoted companies too, in addition to cwr, which are worth many tens of millions, can't be bothered adding them all up, but we'll get an uptodate portfolio value again soon i hope. Then there's a couple of hundred unquoted, some of which will make it to market, and have some value, even if difficult to work out. My problem isn't the port value at all - in fact its high value and high discount to value is the frustrating bit for me - the value of that value isn't being released to shareholders in any form whatsoever as far as i can see, and neither are there any plans. I understand the price is low due to the technicality of the woodfords lot being forcebly sold, hence a definite undervalue there, but given within thr company, £1 is valued at 30p or so (yes, even the high cash balances) when it could be paid out somehow (and therefore a pound being worth a pound) - it all seems madness. If the market for whatever reason values ipo at such a large discount to nav, then simply return some of those cash assets to sharholders to release the value. (They aren't short of cash to invest in nascent companies, they could sponsor hundreds more to keep to their core business - that wouldn't stop just because a hundred mill was paid out to the company owners). Incidentally, with the discount to nav, paying out £3 would result in a mkt cap reduction of £1, in a perfect market with a 60% discount to nav, which is what we have here imv.

[dexdringle] 13/6/2020 13:19

.....but the 'rest' is probably worthless (or at the very least difficult to value) so best case scenario is that the two main holdings + cash might be the same as the current market cap. Not exactly Christmas is it ?

[brucie5] 12/6/2020 21:58

"They valued their remaining shares at £264m in Jan ... so about £500m now imo on that basis..." Plus 5% of CWR= 40m.

Plus cash of... 140m?

Against current mcap of £642.

Rest in for free.

.

[dexdringle] 12/6/2020 20:47

We have to absolutely make sure that any cash realised from sales is paid across to shareholders as I trust my own ability to do something useful with it way more than I do the directors !

[pierre oreilly] 12/6/2020 19:16

IPO Sold £22m of nano in the nano fundraise in dec/jan. Value of £53 each nano share.

I bet they're worth at least £100 per share now, judging by the pharma market since then. They valued their remaining shares at £264m in Jan ... so about £500m now imo on that basis, and possibly much more in any float (I hope they get a move on).

(I assume they haven't off loaded any more nano since dec/jan).

[bamboo2] 12/6/2020 17:16

Oxford Nanopore is not listed.

It has a new holder though, Acacia, who bought the WIM unlisted's from Link Fund last Friday 5 June 2020

Acacia is US based so may influence the location of any listing.

The listing will make IP Group's valuation more transparent.

[brucie5] 12/6/2020 15:01

However, it might be amusing for a poster with far more intelligence than me to furnish a series of valuations for NANO when it DOES list.. non NASDAQ.

[brucie5] 12/6/2020 15:00

dex, please don't...tempt them. It's not even funny.

;)

[dexdringle] 12/6/2020 12:01

I'm waiting for them to announce that they've sold the Oxford Nanopore stake and then, two days later, watch the Oxford Nanopore value soar.....

[brucie5] 11/6/2020 14:36

Pretty impressive recovery intraday...

[p1nkfish] 11/6/2020 10:48

Aubrey no longer Chair at Ceres.

[wetpantz] 10/6/2020 17:24

We probably won’t see a big sustained increase in share price until:
1. Invesco & Lansdowne LLP stop selling. They are both currently forced sellers as they are haemorrhaging funds back to their (rightly) miffed investors. I don’t think they hold much IPO in any closed end fund they might run.
2. We see Oxford Nanopore release a trading update. Given recent developments I would expect their revenue to have swelled by orders of magnitude but they are keeping the numbers close to their chest.

[brucie5] 10/6/2020 11:51

Agree with you Wetpantz. But when will the chart finally turn to reflect this..? I'm rather assuming that 40p was the bottom.

[wetpantz] 10/6/2020 09:30

Read the press release again, seems like G42 & Nanopore intend to roll out their COVID-19 testing solution globally. The kit can be easily adapted to test for any other virus, bacteria, fungi or indeed any other lifeform known to man. Best of all it uses Nanopore's proprietary 'flow cell' consumables which will provide a growing and recurring revenue stream. IMO Nanopore is the first UK company since ARM that has the realistic potential to hit the world big league. Woodford for all his failings was no mug betting big on the company and thanks to him we can get exposure on the cheap.

[bamboo2] 09/6/2020 20:19

FOR RELEASE ON 9 June 2020

IP Group plc - Update on arrangements for Annual General Meeting and Virtual Shareholder Event

IP Group plc (LSE: IPO) ("IP Group" or "the Company" or "the Group"), the developer of intellectual property-based businesses, confirms the format for its Annual General Meeting ("AGM") and the details of its virtual shareholder event which will follow immediately after the close of the AGM.

Due to the Covid-19 pandemic and as detailed further in the Notice of AGM published on 16 April 2020 , this year's AGM, to be held at 11.00am on Thursday 18(th) June, will follow a different format and will not be open to shareholders in the usual way. To ensure that shareholders continue to have the opportunity to engage with the Board, the Group is holding a special virtual shareholder event immediately following the AGM at 11.15am on Thursday 18(th) June...

...The arrangements for the virtual shareholder event are as follows:

-- The event will be led by Sir Douglas Flint, Chairman of IP Group, and Alan Aubrey, CEO and will cover off the pre-submitted questions.

-- If you would like to attend, please register at:
www.ipgroupplc.com/investor-relations/shareholder-information/agm

-- After registering, you will receive confirmation containing information about joining the webinar.
The Board would like to thank shareholders for their understanding and support during these exceptional circumstances.

[bamboo2] 09/6/2020 20:13

Wet, Thanks. As it is a press release I have copied below...

ABU DHABI, 9th June, 2020 (WAM) -- Group 42, a UAE-based artificial intelligence and cloud computing company, and Oxford Nanopore Technologies, an advanced sequencing technology company based in the United Kingdom, announced today they have developed an unprecedented population-scale technology that rapidly and accurately detects SARS-CoV-2, the virus that causes COVID-19.

The end-to-end solution will be officially launched within weeks.

With ultra-high parallel processing capacity, the new technology has the potential to transform the diagnostics industry globally. This innovation uses the LamPORE assay, which is based on the loop-mediated isothermal amplification, LAMP, technique and Oxford Nanopore’s rapid sequencing platform, in combination with the high-throughput automation, sample processing and reporting workflows developed by G42.

Population-wide testing can help break the transmission patterns of the virus, reducing the number of cases when used in conjunction with a rapid public health response. However, existing methods make such large-scale processing logistically difficult and cost-prohibitive. The end-to-end solution developed by G42 and Oxford Nanopore can dramatically reduce the complexity of mass screening.

This new solution based on the LamPORE assay is now being incorporated into the UAE national testing strategy. Over a ramp-up period in the G42 sequencing facility in Abu Dhabi, the programme is expected to scale to hundreds of thousands of samples daily. In addition, the flexibility of the solution supports decentralised operations as well, enabling on-demand testing anytime, anywhere. G42 and Oxford Nanopore are working on the production capacity for the global deployment of this technology.

Peng Xiao, CEO of G42, said, "The collaboration with Oxford Nanopore, a global leader in advanced sequencing products, accelerates G42’s ongoing endeavour to develop impactful applications for public health. This breakthrough solution is a result of the tireless effort by our joint teams under the extraordinary pressure of COVID-19. The worst of the pandemic has brought out the best in us. We believe this capability will not only enable large-scale screening of SARS-CoV-2, but also fundamentally shift the paradigm on health diagnostics in general."

Dr. Gordon Sanghera, CEO of Oxford Nanopore, noted, "Precise and cost-efficient population-scale testing is key to a responsible easing of restrictions, to protect the health of populations and supporting the re-opening of global economic activity. Rapid insights, scalability, and non-PCR dependence, all make a high-throughput screening capacity built on LamPORE technology the right tool for governments and organisations to implement mass-scale testing. We are confident that our partnership with G42 will allow us to successfully deploy this new technology around the world."

The LamPORE assay can be performed on the extracted RNA from swabs, and it is also in development to work directly from saliva. Moreover, the LamPORE assay can be used to analyse environmental samples to assess the presence of the SARS-CoV-2 virus on surfaces, or in systems such as water and sewage treatment facilities.

This scientific and engineering collaboration between G42 and Oxford Nanopore was born out of a deep partnership between the two companies in conceptualising, developing and optimising sequencing capabilities to identify, track, trace and isolate COVID-19 cases and better prepare for future outbreaks.