Mercia Asset Management Share Discussion Threads

[weatherman] 04/8/2021 10:56

Agree - looks like being lined up for an IPO.

[robsy2] 04/8/2021 09:32

Interesting. I’ve added this morning.

[columbarius] 04/8/2021 08:29

That's a strong appointment for nDreams. Looks like they're preparing for IPO. The new game Fracked recently got the thumbs up from Shuhei Yoshida, a Sony heavy hitter.

[cordwainer] 22/7/2021 12:27

After looking at the discount to NAV and the significant premium of peers I just decided to add a few more at 34.25p. Similar strategy to Draper Esprit just much smaller and arguably higher risk. 40p NAV but fund management business worth another ~7p according to Edison (7 July). On balance I reckon we're below fair value today.



edit: Speaking of 'peers' I actually reduced FIPP recently at ~103p due to the hefty premium and added to IPO at 111.5p due to its overdone discount. IPO still good value today at ~118p imho.

[p1nkfish] 14/7/2021 08:41

The potential cup and handle bowl looks interesting, take a look.
What do people think?

[p1nkfish] 14/7/2021 08:40

Good luck.

This couold be forming a cup and handle with the left-hand lip around July 14th 2019.
Looks suspiciously like it.

Anyway, I couldn't care less as if they do achieve the 3 year average growth they target it will be good for shareholders and regional business.

Could be worth considering buying on weakness if you don't already have some exposure and hold for the 3 years. Not advice, DYOR etc.

[beangrinder] 14/7/2021 08:10

Big sale yesterday. An institution surely?I gave management benefit of doubt with private placing a year or so back but now I understand the recent share award is at 30p and target of 20% is already met I've sold out. Not impressed at all.

[riverman77] 13/7/2021 09:35

Haven't looked at the details of the management rewards, but looking at the shareholder register it is mainly held by institutions (Invesco, Ruffer, etc) , and management don't seem to have a majority stake - this surely will put a limit on how much management can extract in terms of share options as institutions won't stand for it, or perhaps I'm being naive. It's not like the set up at Tetragon, which is on a permanent 50% discount (despite strong performance) because management have majority control and can extract unlimited fees.

[columbarius] 13/7/2021 09:07

No, they’ve backdated the start to 1st April 2021 when the share price was around 30p.

[beangrinder] 13/7/2021 08:17

Surely the point is that the starting measure for the options is 38.5p. Unless they increase share price from here there will be no reward?

[undervaluedassets] 13/7/2021 07:48

Yes, management appear greedy. Yes, the company is performing very well.

Wasn't it ever thus in the corporate world? From Geoff Bezos to Mike Ashley?

I certainly prefer this situation to a management team who are not greedy running a business that is not performing well.

On top of that, I maintain, that by any yardstick you care to use, the shares are modestly priced

[p1nkfish] 12/7/2021 14:15

Work out some convenient (to you) stop level calculation and move it as seems appropriate.
What else is there to do unless you exit and put capital to work elsewhere?
Its taken a while but now I try solely to focus on my own goal.

A great deal of management is dodgy, self-centred, dismissive to PIs and some downright socopathic.

[pavey ark] 12/7/2021 13:21

Not one to get my knickers in a twist over directors pay but these guys have just awarded themselves 8m free shares and with any sort of following wind these could be worth over £4m in three years .
They are well paid and there are other options .....let's go forward with our eyes open here.

The fund raising at 25p didn't bother me and I thought Simon Thompson had over reacted but it now looks like these guys are firmly focused on feathering their own nest.......not a problem if we are dragged along.

Most of us will realise that this is par for the course for most management teams but this is a clear indication of how things stand.

If PIs are royally shafted here then don't say you weren't given clear indication as to how things were going.

I still hold a fair number here and will continue to hold but will now pay much more attention.

[gwr7] 12/7/2021 13:01

The easy options have appeared after a bumper year due primarily to the sale of Oxgene. That was the stable star for me and I don’t see another Oxgene in their portfolio. PER is therefore an unreliable measure imo.

[p1nkfish] 12/7/2021 12:57

Set a stop loss and see what happens. I see upside.

Management could dance naked in the office, I couldn't care less, so long as the price goes up. I think it will over 3 years at a rate somewhat above inflation and other more concentrated assets. Whilst paying a small dividend.

It also has Gov wanting the regions to "level-up" with the soft metropolitan south.

[undervaluedassets] 12/7/2021 12:39

The shares will rise.

I discount a pullback (I would be a buyer).

But whether by net asset value or PER these are cheap.

The market will find these and once it has put its slide-rule across the numbers we see advancement

[pavey ark] 12/7/2021 09:09

I have previously said that these guys are out to make as much money as possible.....not that I was condemning that....merely facing the fact.

However these options do seem rather generous and the "hurdles" not high enough to suggest serious incentive.

I am rather shocked to see the starting date is April 1st with a closing price of 30p.

April fool ??

I can't be reading this correctly ???

If the share price doesn't rise in the next three years they get 8 million free shares !!??

[p1nkfish] 12/7/2021 08:55

Negs just gotta be neg.
Move on.
Support the regions.

[mammyoko] 12/7/2021 08:22

Only 2% of the issued share capital

[p1nkfish] 12/7/2021 08:20

Or pay them more salary. Take your pick.

[redartbmud] 12/7/2021 07:59

cordwainer

Yup, they effectively get free shares, and gazillions of them to boot!
Dilutes existing shareholders.

[cordwainer] 12/7/2021 07:05

not especially big (total shareholder return) hurdles for the management share rewards: 10 to 20% total return over 3 years.

[p1nkfish] 10/7/2021 13:38

Does he position himself or family/friends in advance of recommendation?

I'm finding myself deliberately avoiding magazines and websites and other peoples recommendations and doing my own work. Monitoring successful funds has been source of some decent ideas but otherwise I don't trust folk.