Sarossa Share Discussion Threads

[hlp_4u] 13/11/2015 16:12

Hi John I think you are being a little optomistic. Both PHC and SLN are down another 20% since your posts of late summer and show no signs of levelling off. As SAR recognises unrealised investment losses and hains in the P+L there will a loss approaching 2million for the current half year allowing for the fact that GVC has a massive stock overhang at 420p. I would expect a company like SAR to trade at a discount of 30 to 40% of NAV and so unless the share price of SLN PHC AND GVC soar in tje run up to Xmas I can see the share price being v weak..

[johnsmith321] 22/10/2015 16:05

David H Richardson, who was also a director and now major investor in Adam plc has now increased his stake here (4.04%). He clearly has a positive opinion of what can happen in a small investment company with 4 years of rising profits, EPS and NAV per share.

Lets hope we see 2.4p soon.

[johnsmith321] 16/10/2015 11:36

Hi guys,
The largest shareholder Richard Griffiths acquired his stake in Sarossa at average price of about 2.4p in 2011 from my caculation. That puts his holding underwater.

I am wondering why he has not forced the price up (by restricting stock) to at least break even level by now. At 2.4p any stock buybacks they want to do would still be at a big discount to NAV.

Why do you think the stock price has stayed so low?

[johnsmith321] 02/10/2015 11:50

SARS price ticking up to 1.8p. With only 100M shares. I agree that NAV is down at the moment, but I think PHC and SLN will go back up to 100p and 300p soon.

No yield for GVC for the first year as with the last acquisition. The acquisition should stop GVC being dependent on any single source for more 10% earnings. In addition the move up to the main market should be positive for the share price. They also promised to maintain same rate of dividend once acquisition is completed.

[callumross] 29/9/2015 22:13

A good move, the cancellation of the prefs, John. NAV probably down a bit and just a little above 3p now due to PHC and SLN falling back a bit. Not so sure as you about GVC further investment John as no yield on GVC for a year to help pay for their big acquisition and they are subscribing at 422p which is a touch above current GVC price. Guess we'll just have to trust that they have got this investment decision right!

[johnsmith321] 29/9/2015 19:39

Hi Callumross,

Getting rid of the Abbvie pref shares made sense. As you say, they just cloud the investment picture.

NAV up, investments up and profits up (if you exclude the one of Biotech legacy refund). Yet the share price has not moved. There must be a large share overhang. I do not care how they do it, but they should get the share price to 2p at least (as NAV per share is 3.35p). Perhaps they need to consolidate the shares 1:100 and get away from the penny share label.

I like their follow on GVC investment (10% yield) should help to keep the NAV increasing year on year.

[callumross] 29/9/2015 16:09

Just noticed this in the footnotes to the accounts;

"The Group has no non-current payables at fair value but does have 4,331,683 zero coupon, convertible, redeemable, preference
shares of £1 each held in a subsidiary and which, given the terms of these shares, are considered to have a nil fair value on a
going concern basis. Subsequent to year end these preference shares were repurchased for cancellation by the subsidiary for
a consideration of $25,000 USD"

It used to be mentioned in previous posts that the NAV was not as positive as stated because of these old legacy zero prefs which had a right to the capital on a winding up. Well this has now put that one to bed! Good news.

[callumross] 24/7/2015 16:05

Wonder where he got the stock from, given that the buyback has hoovered up 95m shares and is now complete.

[johnsmith321] 24/7/2015 10:45

David H Richardson has entered as a new investor (3.75%). He is also in with Griffiths in adams plc. This is encouraging as it suggests there is still more upside to come.

[johnsmith321] 21/5/2015 13:41

I have just noticed Sarossa just bought all of BVF Partners shares (44,771,610) during the buyback. They are more interested in investing in full biotechs, so no surprise.

[johnsmith321] 20/5/2015 16:29

Lets hope the next 48m shares does something to the share price :). They still have some cash. So they can continue buying back more shares. At some point the share price has to move.

[callumross] 20/5/2015 11:17

They still have up to 48m shares to buy back John.

[johnsmith321] 20/5/2015 10:11

I was a bit disappointed that they bought so much. I was hoping they would do a little over a long time to make a constant demand for the stock. In addition, they would also make more news/publicity from buy back. I hope they also do a share consolidation after the buy back. Drag the company out of the penny stock label and into the respectable >£1 range. Perhaps then more funds may become interested.

Would be nice to see 3.2p, the share price has not really moved despite the constant increase in NAV. This is a investment that is taking longer to mature, than I had hoped.

[callumross] 20/5/2015 08:46

Over 50m shares bought back already, around half of the recently authorised amount, and at a decent price, over 40% discount to net assets per share. Worked out that these purchases alone have added over 0.1p to the NAV per share for the remaining shares. Equivalent to say, a 30p rise in the price of SLN. My best guess is that net assets are around 3.2p per share now and all of it in liquid shares (well PHC holding maybe not that liquid)or cash. I know that few investment companies trade at or above their NAV but this discount seems excessive to me and the shares seem excellent value at these levels. I wonder if, following the buyback it might be worth a consolidation of maybe 1:10 or even 1:50 to give the stock more credibility and highlight to a greater extent the discount available.

[primachm00] 17/4/2015 03:01

callum
they must have read ur post. will vote on buyback on 13/05

[callumross] 26/2/2015 08:38

This one looks ridiculously underpriced following the publication of the interims today. Net assets 2.9p per share, of which 1p is net cash. NAV in fact must now be over 3p because of the strong rise in SLN post 31st December. It's a wonder the company doesn't buy in stock at this level to increase NAV further.

[primachm00] 09/1/2015 21:56

aioaf traded 19000 shares today up from $0.011 to $0.05 a gain of 354%
on the day!!!

[primachm00] 09/1/2015 03:10

I try buy in OTC since very very occasionally I can pick up a few thousand shares
at significant discount to UK mkt. For example price in uk today is gbp 1.675 approx equal to usd 0.025, whereas price on OTC is usd 0.011

[johnsmith321] 08/1/2015 19:48

Hi Primachm00,
Thanks for the information. I do not follow the OTC market, but I was curious about your comment on the trade. It looks horribly illiquid and the buy-sell spread must be sky high. I guess you like to trade the market because of the large price jumps?

During the change of Corporate Structure (SRC to SARS) they said "the Old Sarossa American Depositary Receipt (ADR) program will not be replicated by new sarossa".

Maybe they have not yet stopped it!

[callumross] 08/1/2015 17:36

Prima - why would you want to buy through US OTC out of interest? It is reasonably liquid in London and MM's trade in a NMS of 250k shares. In addition the order book often makes the spread much narrower than the MM spreads.

[primachm00] 08/1/2015 16:39

johnsmith
Symbol is aioaf and traded on OTC pinksheets. Inview very thin market
pricing bears no realtionship to price in UK. Today for example aioaf
was up 83% from $0.006 to $0.011.Few days ago it "supposedly" traded
at $0.15 and then went down to $0.006!! MM is Collins Stewart. Whenever
I try to buy stock is never availabl. hope you can make some sense out
of this

[johnsmith321] 08/1/2015 09:34

Hi Primachm00,
Do you have a link for the OTC market announcement in New York? I could not find the sars buy.

I thought the listing in America was closed during the recent re-listing process.

[primachm00] 14/11/2014 22:22

For those of you who don't follow OTC market in New York, it might be of intrst
to note that some nut job bought today 15k sars at $0.075. Compared to todays
price in UK equal to gbp 1.89 or approx $0.03. True OTC mkt for sars is thinly
traded,but to pay such a premium boggles the mind!!!!

[primachm00] 09/11/2014 01:06

Dont see PHC increase reflected in sars pricing

[callumross] 07/11/2014 12:30

Recent strong rise in PHC means further increase of around £1m in the value of the SARS holding since 30th June. SLN about the same, GVC up 10% and CTH down 10% since then so my calculation of net assets is that they currently stand at around 2.8p per share.