Mercia Asset Management Share Discussion Threads

[columbarius] 05/2/2021 18:55

The discount to NAV is 30-35% depending on whether you include the managed fund business as an asset. I do, and for me the discount is 35%.
When you think of some of the crazy valuations for tech/healthcare shares at the moment that looks very good value.
Even better, the NAV is derived from conservative carrying values of portfolio companies.
MHC is a good example as it is traded so easy to get a current valuation. MERC hold shares currently worth 2.8 million but is in the books at 0.7 million. The difference is worth 0.5p/share and that is one of their poorer performing companies. DYOR

[p1nkfish] 02/2/2021 13:36

Divi intro = fantastic.

[pavey ark] 02/2/2021 12:23

Like some here I am puzzled by this announcement ....why do it?....to get attention ?....surely that's good ?

Not really puzzled by the actual content of the announcement and didn't really expect nDreams to be included.

They can issue any number of updates butI don't expect things to get going here until they realise a large amount from just one of their direct share portfolio as this will immediately focus attention to the rest of their holdings....and then we're off and running.

The introduction of a dividend , no matter how small, was a significant event.

[p1nkfish] 02/2/2021 11:52

Notice the RNS from GROW today. Puts MERC in its place.
IPO now sitting on a tonne of cash.
Others gaining attention, slowly, all competing for $ investment.

[p1nkfish] 02/2/2021 11:51

red, that's a good example of what happens when the average PI is treated with disdain.

A catalyst needed to gain attention and reverse the trend.

I think today was just a flag wave for the s/w element. S/W eating the world, MERC snacking on a very small part of it.

[varies] 02/2/2021 11:17

I too am puzzled by this announcement which, as it says, tells us nothing new.
There is no reference to nDreams, the most valuable of its direct holdings, nor to Abingdon Health, where MERC managed funds have a large interest.
I have invested on a dozen occasions at prices between 18 and 27p and am probably a little up overall.
Patience should eventually be rewarded here.

[pavey ark] 02/2/2021 10:37

I have quite a few here but I have been distracted.
I don't really bother much as I think it must come good as that usually happens when undervalued companies eventually get noticed.

Yes they are obviously trying to get the word out and that is good but investors come if the value is there and certainly don't care about historic events.

The catalyst will come from their direct investment portfolio.....it is what attracted me and it will attract others.

[p1nkfish] 02/2/2021 09:55

The trend since IPO is also off putting to many who care to look. Anyway, time they started shouting louder, hence todays release.

They have competition for investor cash.

[pavey ark] 02/2/2021 08:43

It didn't bother me and anyone could have bought at less (a lot less) than the issue price.

I'm not a precious little flower and the likes of Simon Thompson are only useful in sparking ideas...the rest is up to the individual.

Simon Thompson has put up with a lot, lot worse and turned a blind eye.

I don't take this historical event into consideration here and will hold, buy,sell on my fundamental view of the company.

I always expect management to do what is best for them but the fact that they usually have to bring investors along with them usually results in an alignment of interests .........when they no longer need to bring investors along then you have to watch out.

[p1nkfish] 02/2/2021 08:29

Happy to hold too but they did treat pi's with disdain and hence many have a barge pole attitude to MERC, Simon Thompson or not.

A company that doesn't embrace all investors pays a price.

[pavey ark] 02/2/2021 08:12

Well that was a bit strange....welcome but a bit strange.

For the first time in a while I've been looking over the company but especially the direct portfolio.
The company is massively undervalued but as Simon Thompson in Investors Chronicle has thrown a hissy they appear to be struggling to get the message out.....perhaps this is why they produced today's note.

The thing that will get the message out is a major realisation from the portfolio but I think people have been saying that for some time.

Happy to hold.

[p1nkfish] 07/1/2021 14:32

Should improve on quality and momentum scores and then the macro-micro momo people will see it and join in.

Macro for UK, micto on stocks in the UK.

Just mho.

[columbarius] 07/1/2021 14:17

We're now High Flyers according to Stockopedia which might attract some attention. Their 'value' score is low but based on old news and the stock rank is steadily rising having been 'bearish' a couple of months ago. A lot of people find the company difficult to value. I'm very confident on that score though I've put the effort in.

[p1nkfish] 06/1/2021 19:44

Very much agree and it will arrive on the screens of momentum players to help push it along.

[columbarius] 06/1/2021 18:27

It's been a solid value play for a while and now the 200 day moving average has turned up it's a solid momentum play. In the podcast above Pete made a good point that some exits have taken longer to materialise than expected so patience is definitely required. Personally I'd rather they ran winners than sell too soon but everything in their portfolio has a price and I feel they're entering a sweet spot for some of their companies.

[thewheeliedealer] 04/1/2021 23:37

Hi all,

My mate Peter @Conkers3 and myself did a ‘Twin Petes Investing’ Podcast a few days ago and part of our discussion includes MERC which I think Peter C3 holds. We also chatted about loads of other Stocks and Ideas for research and a fair bit of educational stuff with regards to Investing and Portfolio Management.

Anyway, if you use Youtube, Apple, Audioboom, Overcast or Spotify you can find it under the 'Conkers Corner' Channel (you want Podcast TPI 39) and you can find it on Soundcloud at the link below.

I hope you enjoy it and find it useful, we try to keep them light and they are totally unscripted, not like all the stuffy financial fodder you are probably more used to !!

Happy New Lockdown !! WD
@wheeliedealer

[varies] 19/12/2020 10:38

davebowler.
I am sorry your posting aborted.
Perhaps you were going to comment on Abingdon Health (ABDX)which has just raised £22 million and where MERC funds hold a large stake. MERC does not seem to hold shares in ABDX directly but will, no doubt, benefit if ABDX prospers.
The ABDX web-site demonstrates the use of its lateral flow test for Covid19 anti-bodies.
There are, of course, competitors for this product including one being developed by Paraytec in which BRH has a large interest.
In coming weeks these products are likely to attract considerable interest.
(I hold shares in both ABDX and BRH as well as MERC)

[davebowler] 04/12/2020 16:17

Edison:
Mercia has demonstrated real progress on its three-year strategic plan to achieve operating profitability, expand AUM to £1bn and ‘evergreenR17; the balance sheet by end FY22. AUM have increased to £872m, with third-party, fee-earning FUM of £722m. The group delivered an operating profit of £8.0m (H120: £2.1m), an adjusted operating profit (ex-realisations, fair value gains, etc) of £1.1m (H120: £0.6m loss) and H121 EPS of 1.87p (H120: 0.69p). Revenues are sustainable, with 87% recurring, allowing Mercia to initiate a progressive dividend policy, with a maiden interim dividend of 0.1p per share. Despite progress, Mercia’s shares continue to trade at a material 20% discount to NAV (0.80x), before considering the incremental value of the third-party funds business (we estimate at 3% of FUM, or 4.9p).

[columbarius] 04/12/2020 12:21

The growing fund management income will pay the progressive interim and final dividends and cash from realizations will fund the portfolio and perhaps special dividends. I like the business model.

[weatherman] 04/12/2020 09:38

Most of this eps was from a couple of sales and fair value portfolio increase - if they can repeat that every year then great value going forward - but its lumpy income.

[gfrae] 04/12/2020 09:30

The shares seem to be valued on a discount to NAV basis by Edison and on that basis look good value. Edison say that soon they will be able to value this stock on a multiple of earnings, clean EPS was 1.87p for the first half for the full year it might be 3-4p for the full year which would put it on a P/e of 7-10 times, much of their earnings are recurring fee income.