Seraphim Space Investment Share Discussion Threads

[jonwig] 26/6/2023 14:31

The SSIT companies need one of two things -Takeover by a larger company, or,Next stage fundraising to continue growth. If neither of these looks likely, the "NAV" is illusory. I don't hold, but could do. Many are U.K. companies and a bid from the US is possible, though there is no appetite for that right now.

[tellcharlesimonmyway] 26/6/2023 12:44

Morning all, I'm struggling to see the catch here - the price today is 30p and the net asset value is estimated on the H-L platform as 91.77p. I know that investment in niche space tech is a bit of an outsider punt. However if I buy in it all went wrong for the fund I would in theory get my money back, plus some?
I mainly stick to boring investment trusts/funds, but did get caught out with the Woodford debacle, although with limited cost to my overall portfolio. Are others also considering being cautious and opting for 'avoid', or being brave and diving in?
Any thoughts would be welcome on others sentiments.
Charles

[spectoacc] 22/6/2023 16:02

Been stuck with a few of these - too cheap to sell (relative to cash, and how cheaply they may be able to deploy that cash).

[quepassa] 12/6/2023 19:48

Watch SpaceX launch its second mission of the day later today:

TWO BIG PAYLOADS OF SATELLITES

- strong evidence of the activity in this sector:-


hXXps://www.space.com/spacex-transporter-8-launch-72-satellites

[jonwig] 12/6/2023 19:28

Portfolio company Satellite-Vu was on BBC R4 news this morning:



This was published on 02/06 in the newsletter:

London-based Satellite Vu secured a GBP13m funding boost at a premium to its previous valuation. Satellite Vu is a climate technology specialist providing insights into energy efficiency and carbon footprints, using thermal imaging to detect heat loss from buildings anywhere on Earth. Molten Ventures led the Series-A2 round. SSIT was thrilled to continue to support Satellite Vu alongside existing investors such as Lockheed-Martin and Earth Sciences Foundation. Satellite Vu plans to launch its satellites aboard SpaceX, Falcon 9, in June 2023. This round of funding will be used to accelerate the provision of its services to clients.

[wsm812] 05/6/2023 13:49

hxxps://ukinvestormagazine.co.uk/half-price-assets-at-seraphim-space-it/?mc_cid=1ae870c76e&mc_eid=9ebeb9e753

[quepassa] 23/5/2023 16:45

fully agree.

[jonwig] 23/5/2023 16:06

QP - but, as you know, this traded at a significant premium for a few weeks after floating. Over 20%, I think. That prompted my sale, but I never thought it would fall this far. The Fed's war on inflation did the dirty deed.

There might, too, be a UK factor. UK start-ups and early stage growth don't get the attention of those in the US. (I forget what proportion here is UK-based.) This of course is a big debate at the moment.

*@ WsM812 -- you maybe don't know that I bought this at float (like QP), so I'm reasonably familiar with the trust.

[wsm812] 23/5/2023 15:06

I understand your view Jonwig, NAV is always a snapshot in time and relative to that moment only.

Have you reviewed each of the companies held within the trust? There are some big forward looking ventures that are sleepers in their own rights.

This was from October last year:


Or independant analysis from Edison:
hxxps://www.edisongroup.com/equity/seraphim-space-investment-trust/

[jonwig] 23/5/2023 14:53

Then, if you're right it's a great bargain. The market's obviously misunderstood this one!

Wind up the trust - what price the unquoted holdings? (Think of the Woodford problem.)

Share buybacks - would be a poor use of cash in this case, though not always.

If I held right now, I wouldn't sell, but as it is, I'd want some event to trigger a buy.

[wsm812] 23/5/2023 13:57

Agree with QuePassa - it is cash, reserved or not.

I like that security and happy to wait until the true value of this trust is realised.

With both of the rich idiot americans in a petty space race with each other money will be thrown at space tech left, right and Seraphim!

[quepassa] 23/5/2023 12:47

cash is cash.

and remains risk free until invested.


hopefully they will invest it wisely.

but de facto at period end that £40m was fully cash/liquid resources.


if they wound the Trust up tomorrow - they would have c £40 million cash.

[jonwig] 23/5/2023 12:23

Cash reserved to support fundraisings, not risk free by any means.

[quepassa] 23/5/2023 11:09

The remarkable thing about SSIT is its healthy cash/liquid resources amounting to a stonking £39.1m

SSIT declare that cash reserves represent 18% of NAV as at 31/3/23

However, given massive discount-to-NAV of the share, CASH RESOURCES EQUATE to c 43% of market cap of £89.9m.

Another way of looking at it, is that 43% of the share price is cash-backed.

Not many specialist Investment Trusts are sitting on nearly £40m of cash.


ALL IMO. DYOR.
QP

[chrisdgb] 23/5/2023 08:10

No one seems to believe the NAV........

[wsm812] 09/5/2023 12:12

Some very positive news has got this share price moving back towards fairer valuations.

[spectoacc] 05/4/2023 13:56

Comment seems fair:

[spectoacc] 05/4/2023 10:39

Won't be the last I'm sure.

Revenue growth is of secondary concern when SVB has gone, new money is going to be very hard to come by, and a large number of the companies (most) will be loss-making.

The one advantage SSIT does have - it's sat on a fat wad of cash. If they play their cards right, and accept the nuclear winter unlisteds are heading into, they can pick & choose who to support, and at what revised prices, as well as any choice new investments.

It'll take some balls, because the temptation will always be to "prove" previous valuations, and to prevent existing holdings from going under. Neither of those are the right approach in this market. Cash is absolutely king.

[hugepants] 05/4/2023 10:22

Virgin Orbit filing for bankruptcy has obviously hit sentiment.

[montynj] 05/4/2023 10:21

>75% of the portfolio is unlisted and 9/10 of top companies are unquoted and showing strong earnings growth. The market does not understand space and of course VC is getting battered. But the tailwinds are building. The discount gives a huge cushion partic when the private deals are all structured as pref shares. Despite market vol, average portfolio company revenue growth is 56.0% which is not too shabby! Tuck away and hold.

[quepassa] 30/3/2023 15:27

I remain bullish on the long-term prospects .

Out of love at the moment despite sector-related general news about Spacex & Skylink, and the forthcoming IPO in London of OneWeb/Eutelsat which evidence the growth of the sector.

SSIT's day will come. Investor appetite in the sector will at some point return.

The reduction in launch costs will further spur the satellite and space-related industries into the stratosphere.

Looking cheap at these levels.

ALL IMO. DYOR.
QP

[ec2] 30/3/2023 11:01

Big drop today and no idea why. Decided to make my second small purchase into these at 36.67p as part of a pound cost averaging strategy here.

[livewireplus] 09/3/2023 11:24

Indeed. Seems to have generated a little more interest ....

[panache1] 09/3/2023 10:41

Mark B ceo on Sky News now