Puretech Health Share Discussion Threads

[takeiteasy] 26/6/2024 12:30

That is a great point - would love to meet these hedge fund sellers down the pub and tell them at some certain point their ongoing attempts to drag this down further start taking the michael :)

[ashkv] 26/6/2024 12:20

At 186p (156p (Cash Component)/188p) = 84% of share price is net cash / PRTC has no debt

No value for sizeable assets / Karuna residual payments etc

Sitting duck!!!

[takeiteasy] 26/6/2024 11:52

Boy, are they squeezing for every drop under 190 - if you look at the chart back over time - really not sure they will win this last bit down but will watch with interest

nai etc ....

[ashkv] 26/6/2024 10:24

Baron sold out - kind of strange as he didn't give any reason for doing so!!!

His thesis for buying into PRTC still holds!!!

Perhaps a cash call for Baron Investments as he recently got wiped out on jersey Oil and Gas and sold out of the same.

And his once super overweight / largest position FXPO is in a long spiral down...

For JOG Baron quadrupled his investment on a minor leg down from his original investment in JOG as it appeared to be a "conviction trade" and then JOG tanked to 90p with the Labour commies announcement on North Sea Investment Allowances!!! He also exited ENQ which he was buying in the 17s all way down to 12p

I still own ENQ with an average of 14p - JOG I sold in the mid 200s/flattish quite a while back!!!

I have very recently bought into RSG and INDV post doing my own due diligence on his tips!!!

Baron also announced today that he has sold out of TGA - which I have range / dividend traded from mid-last year (and have recently started buying into) Coal should benefit in Q3 along with Crude/Gas - they generally trade together with coal/gas more correlated!!!

The dude is a bit of a salesman - in that he bangs on about his wins but seldom mentions his losers (appears to be 50/50).... He has some good ideas but also I would gather an equal amount of lemons...

Hopefully his PRTC timing is akin to his recent exit from Currry's - in the 45p range / flat for his entry and just prior to its zoom up post a bid!!! ;)

[takeiteasy] 26/6/2024 09:44

Marvelman - agreed but if you are a long holder having had some of your shares now sold at 2.50, you would be rather odd to keep on selling at this level unless you were a forced seller.
A great short at 2.50, but I would say getting a lot more risky sub 1.90 and you may see the sell volume lessen in response to this risk assessment.
I sincerely hope we get a very constructive response to this sad state of affairs...but crikey they have got a PR mountain to climb...
all imho and nai etc

[swinsco] 26/6/2024 09:18

Baroninvestments sold out going by a Twitter post. Poor state of affairs really.

[marvelman] 26/6/2024 09:14

Still in a nosedive. Our shorters have been given a dream scenario by our BOD

[takeiteasy] 26/6/2024 07:45

bite the hand that feeds you - with little to no institutional interest it seems they need to reward UK retail investors here with dividends or something positive...from trading today the UK retail seem to be starting to cave a little ....

[marvelman] 26/6/2024 07:21

Yes, from my observation this has been an invitation to outside seasoned speculators to buy in, hold for ex rights, sell and wait for the free money.what on earth were they thinking. Certainly not thinking of the LT shareholders already on the register

[takeiteasy] 25/6/2024 17:53

I still do not know the way back from this...that so many want out at effectively a price that values IP for close to nothing...not sure I have seen anything quite like this before - where do you go next:)

[takeiteasy] 25/6/2024 17:51

I have sympathy with the concept but the minute the management knew that all UK PIs were effectively unable to get involved this should have been dropped. They run the risk of being sued for unfair treatment by UK shareholders.

My other annoyance is that the large holders must have been indicating their disquiet here for a long time with the selling down of holdings and refusal to buy in properly to lift the share price despite all the "better" news over the past year. So in this scenario the last thing you need to do is over pay and throw money away.

Better to find a way that large holders can combine and sell a large chunk at a discount to hopefully a willing new investor - so penalise these holders and not the likes of me in the way this has been done by over paying etc etc

[takeiteasy] 25/6/2024 16:43

There are rules for treating shareholders fairly - this last CA absolutely failed to do that given the withholding tax issues for UK residents.
It does worry me that the BOD are seemingly unaware that they have accountabilities over this. Where is the Investor Relations expert in all of this?

[bad gateway] 25/6/2024 14:37

Rather oversold imo though be nice to retake that 50dsma.

[marvelman] 25/6/2024 14:28

TIE...all of the above...Edit apart from the first one

[takeiteasy] 25/6/2024 14:21

So chaps, where is the gap here

-Folks simply do not believe the valuation model done by Research experts
-Folks simply want a small return PDQ and have no interest in waiting for 3 years for a better multiple
-Folks have little/no faith in management to deliver

Any views

[brianblu] 25/6/2024 14:04

I agree marvelman scandalous by management

[swinsco] 25/6/2024 14:01

Started to buy again. Seeing it could go lower but happy to make a start around these levels.

[takeiteasy] 25/6/2024 11:42

Brilliant note, thanks!

Another way to look at it is that with PureTech having a market cap of just £546m (essentially covered by the cash and Karuna equity
stake), investors are now being ‘paid’ to hold all wholly owned and founded entities, and the royalty streams from Karuna

The market has never seemed to like this as a public entity so why not take it private. They are now clear what the price will be 2.50 for the majority of holders. Perhaps the major holders will start pressing the company for this.

Who knows this may all be part of the plan. Put a teaser out for a certain price level and see the market demand. May be a valuable first step to tease out what the market may pay for the firm vs. what the research experts feel should be a long term economic value

imvho /nai etc

[marvelman] 25/6/2024 11:30

Thanks for that Ash..thorough research as always

[ashkv] 25/6/2024 11:23

27Feb24 In the meantime though, Peel Hunt put out a 78 page note today on healthcare & life sciences. Puretech listed as their number one pick, order of preference.
They highlight the "very significant upside that exists for this diversified portfolio managed by a team
with a proven track record... With a success rate of regulatory approvals (moving from Phase 1 to filings) of 47% vs a wider industry average of 8%, we believe PRTC is an excellent way to access Boston-based science and
cutting-edge therapies"

[ashkv] 25/6/2024 11:22

Indeed I have been holding for a few months around 200p!!

Was alerted to the share by Baron Investments - and should have sold out for a near 20% upside - now at a slight loss

From January 2024

Valuation is firmly underpinned by cash and Karuna.
PRTC now has cash of $320m, c.$300m in equity holdings in Karuna, up to $500m from Royalty
Pharma (subject to KarXT sales), milestones due on certain events (undisclosed), 2% royalty upside on annual sales of KarXT above $2bn, and sublicence deals where it retains undisclosed percentages of deals to develop KarXT for other markets. This is all before we get to the rest of PRTC’s portfolio – Seaport (wholly owned: LYT-300, LYT-310, LYT-320); Vedanta (41%), Gallop oncology (wholly owned: LYT-200), Vor (4%), Entrega (74%), Akili (15%), Sonde (35%), and
LYT-100 (wholly owned). Another way to look at it is that with PureTech having a market cap of just £546m (essentially covered by the cash and Karuna equity
stake), investors are now being ‘paid’ to hold all wholly owned and founded entities, and the royalty streams from Karuna

[marvelman] 25/6/2024 11:11

Ash..market cap to cash ratio is one thing (bad enough) but marker cap to real asset value is unbelievably out of kilter made worse by this TO

It seems that speculators have done better out of this fiasco that genuine LT investors.

[marvelman] 25/6/2024 10:54

I hope the BOD learn a costly lesson from this debacle. Serves them right if the company gets taken out at these levels and puts them out of their jobs