Pires Investments Share Discussion Threads

[outspan] 23/4/2014 00:50

A bit of good action too at TAVI today I see, albeit that it withered somewhat as the day went on. People liking the thought of what Oliver Cooke can line up and good luck to them, there's no doubt that he currently enjoys much better esteem than Peter Redmond which presumably explains the difference in investor sentiment.

But how do they compare for value?

As things stood this evening, TAVI had a market cap of about £1.1m, PIRI £1.3m.

As far as I can see, TAVI has no assets except whatever is left of the £430k they've raised (before expenses) since last Summer's rescue, initially at .05p and most recently at .07p. There are 50m outstanding Director options for conversion at .05p. OC also holds 10m "A Ordinary Shares" will, on 31 July 2016, subject to prior achievement of a performance hurdle, convert as a class of shares into such number of fully paid New Ordinary Shares as shall equate to 10% of the share capital of the Company at that date, as enlarged by such conversion. New shares can be issued at any price above .01p, whether in cash or shares in lieu, as and when a potential acquisition is identified. AIM will require TAVI to effect its Investment Policy by July or face suspension.

By comparison, we will shortly get an update of PIRI's asset value but at the last count it was about £1m in cash and investments, later enhanced by £500k from a placing at .1p so around £1.5m, before annual running expenses but also before the recent chunky (paper) gain on the Rame conversion/admission since when PIRI has £600k of its current £1.3m market cap in identifiable assets in Rame alone, in itself probably about twice the value of TAVI's current assets.

PIRI doesn't appear to have any outstanding options but does have outstanding warrants "On 16 April 2012, the Company granted a warrant to Peterhouse Capital Limited which gave Peterhouse Capital Limited the right to subscribe new ordinary shares of 0.1p each representing up to 3% of the issued share capital of the Company from time to time.....On 17 April 2012, the Company granted warrants to each of P Redmond and A A Quraishi which each gave the holder the right to subscribe new ordinary shares of 0.1p each representing up to 1.5% of the issued share capital of the Company from time to time."

In each case, the subscription price for the exercise of these warrants is 0.1p per share, a truly significant premium to the current SP, and notably these warrants will expire on 20 March 2015 and 17 April 2015 respectively.

PIRI does not appear to have any imminent need to raise capital e.g. beyond the cost of conversion of Rame warrants, a further sum of £60k was seen to be free enough to invest in the Rame Admission placing.

Of course, as with any investment company, a suitable opportunity could see PIRI seeking to raise investment capital BUT it could only do so at .1p minimum, again a significant premium to the current share price but, notably, PIRI has already demonstrated that it was able to do exactly this last Summer at a then 43% premium.

None of this is put forward as any sort of negative on TAVI. Just like any shell, much will depend on the added value derived from whatever is acquired as compared to its cost. It's merely presented as an insight into what a drag current sentiment is on the share price and how the underlying value could easily underpin a swift move north if the right catalyst were to appear.

It may not take that much. After all, PR remains as a Director of KENV but, at a stroke, has recently created a new boardroom structure that propelled KENV to a 3-bagger rise in a matter of days, merely based on anticipation, not value.

It may not be popular to say so but it may well be that PR deserves a re-rating. He previously did some good stuff in combination with RA, a relationship now revived here and Rame was and is a decent first major investment with the promise of more to come. AQ has good form too, helping to get the ducks in a row at AMED.

Let's hope the prelims give us some extra insight re the immediate outlook and plans and provide the first brick in rebuilding the wall of sentiment. Those warrants look tantalisingly close to their expiry date and have no value down here.

Notably, it's not just the Directors who are set to benefit but also Peterhouse, the brokers, who incidentally are also at the back of KENV and TAVI where I note that the seemingly more highly acclaimed OC is actually part of the team:



Which raises the thought that if much of what is driving these various companies towards realising their ambitions is the same, why the imbalance in their valuations? We kind of the know that the answer is current sentiment. The question is what happens when it inevitably corrects itself...

[outspan] 22/4/2014 20:26

Definitely, next midweek latest.

[the_beagle] 22/4/2014 15:28

First interest for a while. Results this month?

[outspan] 11/4/2014 08:45

It's undoubtedly a factor Divmad. Just thinking I wouldn't have been able to accumulate so many at the same prices without it and it will be resolved one way or the other. Either he will prove his detractors wrong with a number of value enhancing pre-IPO deals and/or an RTO or he has already shown at Kennedy his awareness of how he can enhance value simply by moving to one side!

Any of these scenarios looks good enough reason to hang around and/or accumulate at prices well below the .1p nominal value, possibly below NAV and wait for events. Too much volume for nothing to be happening IMHO!

[divmad] 11/4/2014 07:44

Outspan, what's your take now? Seems the PR negative effect still prevails.

[swizz] 10/4/2014 20:54

Is today's share price weakness as a result of more CE distressed share sales to hit the mkt as per AVP?......GL S

[webster34] 10/4/2014 08:16

No rush back. No trades, No interest.

[moreforus] 10/4/2014 07:26

bit of brekkers then the nursery run...then the stupid market....then the stock market....

[flojo] 10/4/2014 07:21

Morning all ,where to today.?

[moreforus] 09/4/2014 16:23

hopefully a bit more size than that soon!

[flojo] 09/4/2014 16:21

Buying at 0.625

[moreforus] 09/4/2014 13:58

ping...no trigger trade...maybe a delayed one to come!

[moreforus] 09/4/2014 13:48

ping ....

3rd higher low on the chart....

[moreforus] 09/4/2014 13:44

matched book unless there's any brave sould prepared to take 20 mill on margin??

[the_beagle] 09/4/2014 13:43

The 20 million was a roll over imo.

[swizz] 09/4/2014 13:21

Another chunk to a good home?....GL S

[moreforus] 09/4/2014 09:02

some nibblers back

[swizz] 08/4/2014 18:06

tb, try and look at the positive, that is 10M less the seller now has available to off load and without the distressed seller, we would not have being buying at these levels, patience will be rewarded IMHO and perhaps PR will also prove some of his doubters wrong?.....GL S

[the_beagle] 08/4/2014 16:30

10 million dump explains the share price today. Grr!

[the_beagle] 08/4/2014 09:03

It looks as if yesterday's late trade was a top end rollover. share price flat this morning and unlikely to move without news imo. Are we due an AGM this month?

[swizz] 07/4/2014 19:10

M4, looks that way, either way it is another positive the shares are moving the right way for future gains IMHO.......GL S

[moreforus] 07/4/2014 18:23

32.5 mill matched book?

[flasher2] 07/4/2014 09:44

TB, it's the same everywhere, very slow day.

[moreforus] 07/4/2014 08:50

nice forward looking rns and PIRI are in the game...looking at or for another pre-ipo investment which is what they should have been doing ages ago rather than an rto...

Commenting Rame's admission to AIM, Peter Redmond, the Chairman of Pires said:

"I believe that investing in pre-IPO opportunities such as Rame provides Pires' shareholders with a value enhancing opportunity. The board continues to seek similar opportunities with the objective of increasing shareholder value and believes that Rame's successful IPO within two months of Pires making its investment illustrates the potential of its investment policy to provide positive returns for shareholders."