Mercia Asset Management Share Discussion Threads

[daffyjones] 29/7/2019 21:25

Confirmed on RNS today that Woodford sold circa 5 per cent of the company in Friday , going from owing 25% of Mercia to just under 20%.
Most likely there will be further sales in the days ahead.

[+eysenck] 26/7/2019 15:47

stevenb3, my thoughts exactly. Woodford's woes are throwing up some nice opportunities - here and Reneuron for example.

[stevenb3] 26/7/2019 14:42

Just topped up at these levels. Large discount to NAV. When Woodford our will bonce back nicely.

[gary1966] 26/7/2019 13:00

IOMhere,

As +eysenck says the company website. Invesco hold even more and so no chance of selling to them.

[+eysenck] 26/7/2019 12:35

I suspect that a RNS is imminent.

[+eysenck] 26/7/2019 12:34

Woodford Investment Management Ltd held 74,980,042 (24.7%) from MERC website

[iomhere] 26/7/2019 12:19

Oops! Duplicate post.

[iomhere] 26/7/2019 12:17

Gary
What's your source for a sizeable Woodford holding?
There's not been an rns about a disposal that would take a holding below limits.

[gary1966] 26/7/2019 11:40

Assume Woodford but last holding info suggests he has just under 75m and so could be a way to go unless he can place them. At 30p I would hope that would be easy.

[redartbmud] 26/7/2019 11:04

This is a share that continually flatters to deceive.

[davidosh] 26/7/2019 11:01

Well a very big trade has gone through and I suspect that will be Woodford having to exit rather than wanting to so hopefully it can recover quickly from here. It was trading up at nearly 40p without selling pressure.

[sundance 13] 26/7/2019 10:23

Big drop, anyone know why?

[nocton] 09/7/2019 17:12

All sounds good, but this has been a disappointing investment for me - the long term chart above says it all. Let's hope that some value can be realised soon and reflected in the share price. Blue Prism is mentioned with a 100x growth story, but there cannot be many anywhere near that as otherwise the share would have rocketed.

[redartbmud] 09/7/2019 08:05

wan

Thanks, plenty of homework.

[wan] 09/7/2019 07:49

Simon Thomson states that he had an informative results call with the directors of Mercia Asset Management. I note that he also mentions that CEO Mark Payton notes that Mercia has received a number of approaches for its portfolio companies, highlighting scope to realise potentially significant valuation uplifts on disposal -



Interview with Mercia's CEO
8th July 2019



The Mercia Journey
8th July 2019

[pavey ark] 08/7/2019 18:27

Further detailed write up by Simon Thompson in IC today.

Lots of info given by management and he has a sum of parts valuation of 48p and "Strong buy".

[cheshire man] 08/7/2019 16:33

Well I think we are ticking along nicely here :-)

[redartbmud] 08/7/2019 16:32

PA

Ta.
Just wondering where the returns go to.
Doesn't seem to be the long suffering shareholders.

[weatherman] 08/7/2019 16:19

There is more information on this link.
hxxps://www.edisongroup.com/publication/scaling-regional-powerhouse/24555

[pavey ark] 08/7/2019 12:24

redartbmud, I think you are confusing value with share price.
Management are responsible for value not share price.

Management have certainly produced income and value from their asset management business

The main engine of growth here would be the investment portfolio and if you invest in startup companies there is a rather obvious time lag between investment and tangible return.

One of the reasons I invested here was that some of the portfolio investments were further along the road and poised to make a return to MERC

(A little hint would be that it is better to buy at 32p than 46p but each to his own.)

[p1nkfish] 08/7/2019 11:17

Any they repriced their options down.
It cyclical, value is here but no rush seeing it released until cycle turns.

[redartbmud] 08/7/2019 10:41

RNS 31 January 2017:

Mercia Technologies, a national investment group focused on the creation, funding and scaling of innovative technology businesses with high growth potential from the UK regions, is pleased to announce a conditional placing of, in aggregate, 86,956,521 Placing Shares at 46 pence per Placing Share. The Placing Price represents a discount of approximately 8.9 per cent. to the closing mid-market price of 50.5 pence per Ordinary Share on 30 January 2017 (being the last practical date prior to the announcement of the Placing).

Can some body please explain where the value, in this share, has been created since Jan '17? Also whwn will the shareholders ever see a return, other than a sale to realise a capital gain?

Genuine question.
Just askin'

[pavey ark] 08/7/2019 10:30

Thanks weatherman,
Edison seem to be valuing the Asset Management side on 3X fees (£30m+) and I suppose that must be the industry standard.

Can't find my 24p valuation but it was an "up to" figure and I will look for it later.

What ever way you look at it this company is undervalued but I think it will take a big IPO from its portfolio to get it going.

[nocton] 08/7/2019 10:26

"no asset value is being given to the asset management business."

Maybe that is the reason for the name change?