Pollen Street Share Discussion Threads

[cousinit] 11/12/2022 22:02

R2 - I was just highlighting if you took the rich value of £169m for the manager, the old HONY side is on a chunky discount.

I think I agree that there's no discount if you assume the management co stake is not worth much.

[fred177] 11/12/2022 21:05

R2 at what price do they become good value ? would trading at NAV be worth buying?

[rambutan2] 11/12/2022 20:49

CousinIT, there is no discount. The debt fund ie HONY issued all those shares, thus diluting itself in return for the management company. You can't separate them out.

[cousinit] 11/12/2022 08:29

Agree. Citywire have made a Horlicks of it. Shows how poor the company reporting has been.

As a counter, I would say that there is potentially a debt fund on a 40% ish discount alongside the richly priced asset manager in this weird concoction.

[rambutan2] 11/12/2022 04:54

"Under the terms of the Combination, holders of Pollen Street shares will be entitled to receive 29,472,663 new Company shares for Pollen Street's entire issued share capital, equivalent to 45.53 per cent[2] of the enlarged share capital of the Company. Based on the closing price of 967.5 pence per Honeycomb share on 14 February 2022 (being the last business day prior to the date of this announcement), the Combination values Pollen Street's entire share capital at approximately £285m."

Current share price of 572p values those 29.5m shares at £169m.

Recent trading statement said aum was £3.3bn ie 1% = £33m.

So valuing the (Pollen Street) business at approx 5% of aum!

I think not.

[rambutan2] 11/12/2022 04:13

lanst12345, fairly typically, Citywire have not done their homework. The nav they are working off is completely out of date and from before the shares in issue was nearly doubled. And the 13% yield mentioned is also wrong, as the div per share has fallen, and is due to fall further.

[cc2014] 06/12/2022 09:06

The problem for me with Pollen is that I find they too "sharp" or "excessively ruthless" or just fundamentally more interested in their own pockets to the detriment of their investors.

When things are going well investors tend to ignore this because returns are good even if Pollen are taking too much. When things turn more difficult well it's a different story.

It's clear that in retrospect the Honeycomb shareholders have done badly out of the merger. Certainly the shares are now worth around 40% less than they were before the merger was proposed. It kind of follows that somewhere along the line the Honeycomb shareholders got screwed by Pollen, perhaps due to the wrong ratio in the merger or perhaps some Pollen shareholders were looking for an exit and the merger gave them the liquidity.

It was strange all along. Merging a debt IT with an asset manager never made any sense to me.

I dunno. It's hard to work out the underlying value especially with the asset manager industry under pressure.

I do not know whether we are approaching a bottom or not but I do know buying this in the Santa rally may not look a great idea if the general market comes back under pressure in the New Year.

GLA

[cousinit] 06/12/2022 08:12

The communication here for private investors is very poor. As others have said, it's not straightforward to get a handle on the current position. It seems to fall between two stools, neither of which are in vogue. Not convinced it's Lindsell Train just yet...

[fred177] 01/12/2022 12:30

Does seem like they are avoiding the issue. Which suggests they know whats coming

[rambutan2] 01/12/2022 03:36

Yes, i saw that, but believe that they need to state that that is the case, if they believe it is. They shouldn’t issue the quarterly, which basically says everything is fine, and pretend that the nav doesn’t exist.

[fred177] 30/11/2022 23:11

Ive found it, this preceeds your paragraph



The Honeycomb Directors may temporarily suspend the calculation, and publication, of the Net
Asset Value during a period when, in the opinion of the Honeycomb Directors:
* there are political, economic, military or monetary events or any circumstances outside the
control, responsibility or power of the Honeycomb Board, and disposal or valuation of
investments of the Honeycomb Group or other transactions in the ordinary course of the
Honeycomb Group’s business is not reasonably practicable without this being materially
detrimental to the interests of shareholders of the Honeycomb Group or if, in the opinion of
the Honeycomb Board, the Net Asset Value cannot be fairly calculated;
* there is a breakdown of the means of communication normally employed in determining the
calculation of the Net Asset Value; or
* it is not reasonably practicable to determine the Net Asset Value on an accurate and timely
basis.
From Completion, the Net Asset Value ETC as above

[fred177] 30/11/2022 22:47

Rambutan2 i've tried to search online for the prospectus without any joy, goes back to Pollen street main site ? any ideas how i can access ? any help appreciated

[rambutan2] 30/11/2022 22:33

I will try to contact them tmrro. But I have tried previously and failed to get a response.

[fred177] 30/11/2022 22:24

Thanks that's very interesting, as you say very misleading and now they've failed to deliver on their promise above with Q3 statement ?. Maybe they should be taken to task?

[rambutan2] 30/11/2022 22:14

Here we go:

(pg92)
"From Completion, the Net Asset Value of the Combined Group will be calculated on a quarterly rather than a monthly basis, and will be published as part of the quarterly trading updates, interim financial statements and annual financial statements of the Combined Group. The timing for publication of the quarterly updates and financial statements will be announced in advance to the market. The Honeycomb Directors expect that the basis on which the Net Asset Value of the Combined Group will be determined will be substantially similar to that described above, and an explanation of that basis will be set out in the notes to the Combined Group’s financial statements."

[rambutan2] 30/11/2022 22:06

In the prospectus, they said they were moving to quarterly updates, which I assumed would include a nav.

[fred177] 30/11/2022 21:52

Looking at the history of RNS announcements they stopped monthly NAV in August as you say very odd or very contrived ? Thanks for your insight

[rambutan2] 30/11/2022 21:26

Got me stumped. But is rather misleading investors who are still looking at a completely outdated nav.

[fred177] 28/11/2022 17:53

They've issued a Q 3 trading update but still no mention of NAV per share ?

[fred177] 17/11/2022 16:43

starting to move the way you said - thanks

[rambutan2] 16/11/2022 22:13

They've moved to a quarterly, but yes the 30/09 nav is surely due - and awaited by me with much interest...

[fred177] 16/11/2022 10:32

Thanks, This doesn't yet appear on their website, and news on NAV per share ?