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26/2/2021
10:49 | bapodra_investments: I have sold my Vela shares this morning for a loss as they were in my trading account. I have re-bought this morning for 0.09p but in my ISA as I think the growth potential has just increased in Vela shares. I like the investments James Normand and the BoD are making. I like their style and diversification. The only investment I am not sure on is the SGS Capital but all the other investments are really exciting and will increase the value for Vela going forwards.
I am far more confident now in Vela than I have ever been in the past 3-4 years I have held Vela's shares. Yes, I have taken a loss today but it was more strategic and to do with tax planning than anything else. I have bought at 0.09p in my ISA and I am very confident in Vela going forwards.
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03/2/2021
11:59 | bapodra_investments: Rebel - There you go again. Be polite, be kind and be professional. You are after all a graduate who has had the benefit of university education.
I have never asked for your credentials. I may have commented that I am not aware of your background or something like that.
I know how big the COVID-19 market is, the diabetes market is, etc. That does not necessarily mean that Vela's investments will all be successful just because they are entering an enormous market.
Buddy - You have not demonstrated anything. We can all read and research and I am sure many of us understand how big the markets are. That is not in question. You are trying to fit a narrative to your view. It seems you may be emotionally attached to Vela. I do not know when you invested but what was your reason why you invested in Vela? Which investments in Vela led you to make that decision?
The first time I invested a few years ago the reasons were the very companies that Vela has sold and no longer has an equity stake in. My reasons now are Mode and Cornerstone. What were the companies that Vela had invested in their portfolio that led you to invest in them? Did you invest before or after SGS, North Star and CBD or after?
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03/2/2021
11:38 | bapodra_investments: No worries SMCL. Although Argo has the word Blockchain in the company name it is basically a Bitcoin and Crypto miner. Think of a gold mining company and what happens to it when the gold price is going up. Argo can be seen in a similar way. Just like gold mining companies can be a leveraged play on the gold price, Argo, is potentially a leveraged play on the BTC price.
Vela's exposure to Blockchain has all but diminished after the sale of BlockchainK2 which to be fair, Vela, sold at a reasonable price to minimise losses. It actually reported a profit due to accounting procedures/rules.
Mode have given the indication on a recent presentation that I watched that they are due to make some exciting announcements in the coming months. I look forward to these announcements. Whether they lead the price of Vela or in fact even Mode itself, to go up only time will tell. The one thing I will not say specifically for Vela is that this news or this announcement will lead to the price rising. It does not always work like that.
The current Vela price is already looking six months ahead into the future. If you are aware of 'Discounting Mechanism' and how the market prices the shares based on present and even potential future events then you will be appreciate my viewpoint more. You do not have to agree with me. The one thing I do agree is that patience will be required as until the assets rise in value that Vela has invested in and this translates into demand for its shares thus an increase in the share price, I do not expect a significant increase in the share price. We could be taking several months if not over a year to even really get going. So the one thing I do agree on is patience will be required due to the reason I have provided. In order for demand for the shares to increase, investor psychology, sentiment and interest in the company will have to increase. There is no guarantee any of these will happen but they must for the demand to appear for the shares. This takes time and that is why patience is required.
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27/1/2021
12:44 | bapodra_investments: Rebel - Exactly - your last sentence is what I agree on. Investors need to look at Vela from a risk/reward perspective. Some will not have the stomach for it and others like us will. We may have a higher risk tolerance than other investors. Just because we both have invested in Vela does not mean it is going to succeed. I accept that I could be wrong and Vela may not provide me with a profit but it is a risk I am prepared to take based on the potential reward available.
Your second paragraph - I am talking about investing in Vela from a share price perspective. I am not saying Vela Technologies itself is a high risk. I am suggesting that investing in the company is high risk based on share price performance. Those investors who invested a few years ago have seen their capital diminished and it is this probability or more likelihood of making a loss which is what makes investing in Vela high risk, not the company itself is high risk.
Anyway - It is good that we are both on the same side as investors who have invested in Vela and are shareholders in this company. We want this company to succeed which goes without saying. I agree with you that we need to give JN at least 12 months to see what he can demonstrate. I actually think 2021 should be a positive year for Vela if it can make some new investments and its existing investments do well such as Mode.
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26/1/2021
12:34 | bapodra_investments: Rebel - To look at it from a different perspective - why are the masses running? I am sure many investors have been brave for a long time but that has not repaid them. Don't get me wrong, I have recently added at 0.08 and wished I could have shown more patience and invested today as I would have got more shares for my investment.
I think Vela is undervalued and some more investments could turn the fortunes of Vela and for this we must give JN time. I agree with your sentiment but your reasoning at times I feel is weak. You may want to support your sentiment with some supporting evidence to really convince anyone on this BB. You do not need to convince me as I been an investor in Vela for a few years now and just reduced my average by investing more. I am comfortable being patient in Vela but that does mean I am right or that Vela will succeed or in fact reward shareholders. This is by no means a given. Vela is a very high risk investment and investors could lose all of their money so they should only invest what they are prepared to lose or do not require day to day.
Companies have to earn the patience of investors. Markets are ruthless. They are also a forward discounting mechanism and therefore Vela's price today is based on what the market thinks Vela's earnings/growth will be six months into the future. The enormous dilution has not helped its share price either.
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22/1/2021
20:33 | bapodra_investments: I think there are some things which we need to consider. First of all Vela has around 7.17bn shares issued. That is a huge amount and this is why Vela is constantly near the top of the leaderboard in terms of volume traded. However this is not yet reflecting on the share price because it will include the selling of the shares as well as purchases.
The other thing to note is that Vela have advised us all through their RNS's that they intend to invest in listed companies so that it is easier to attach a valuation to the company. The other benefit is that it provides increased liquidity as to realise gains and exit investments.
One of the most exciting holdings in Vela was Airportr. It was gaining traction with British Airways, etc. I don't think Vela holds this investment anymore which is a shame but I cannot see anywhere (I could have missed it) where it actually disposed of its interest in Airportr. Some of you may know the answer to this.
The one investment no one seems to be talking about is their £200,000 investment in Cornerstone FS PLC. This is a cloud based foreign exchange company. It is an international platform. Vela acquired around 400,000 shares and the company is valued at around £8.1m. It has five year warrants so this is a long term investment but it will give Vela the option to purchase the shares for 0.50p
The company is debt free. This is a big plus after the restructuring and bond situation. It is beginning to clear out some of the non performing assets and beginning to invest in new opportunities. I do agree with Rebel that patience is required as a lot of buying will be required to move the share price up which means some really positive news flow. Without that it will be difficult to create the humungous demand for buying Vela shares required to move the share price upwards with continued momentum.
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22/1/2021
07:43 | the chairman elect: Vela Technologies plc
("Vela" or the "Company")
Disposal of holding in BlockchainK2 Corp
The Board of Vela (AIM: VELA) announces that, between 12 January 2021 and 20 January 2021, the Company disposed of its entire holding of 272,000 shares in BlockchainK2 Corp ("BlockchainK2") at prices between CAD$0.86 per share and CAD$1.5255 per share and with an average price of CAD$1.19 per share generating net proceeds of c.CAD$322,855 (approximately £186,390) for the Company (the "Disposal").
Although Vela originally invested £200,589 in BlockchainK2 in May 2018 its book value in Vela's latest published accounts (as at 31 March 2020) was £14,396. Therefore, the accounts for the year ending 31 March 2021 will reflect a profit on disposal of c.£172,000.
Following the Disposal, Vela no longer holds any shares in BlockchainK2. The net proceeds from the Disposal will be used by the Company to make further investments in line with the Company's investing policy and for general working capital purposes.
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20/1/2021
18:30 | bapodra_investments: I have just added to my position today which has considerably brought down my average price considering I invested in Vela a few years ago at a much higher price. As a result my losses have reduced though my exposure to Vela has increased.
I was considering investing in Mode Global Holdings PLC but it is back to its IPO price and I fear it may have to raise further capital which could lead to dilution and therefore added to my Vela position instead. Vela has invested £250,000 in Mode which gives me an indirect exposure to Mode and slightly de-risks my investment as Vela is invested in other businesses too. So some diversification.
Does anyone know what Vela's plans are with North Peak Resources? I am not sure how North Peak fits into Disruptive Technology but do you think they are looking to sell their stake?
There has been no recent update on BlockchainK2. I must admit this investment has been disappointing when you compare how Argo have performed and are doing right now. Also the lives of Riot and Hive have done rather well recently.
I would like to see Vela sell some deadwood and replace with some new fresh investment opportunities like Mode. I am sure that is what they are currently working on with possible announcements to follow over the coming months.
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03/1/2021
12:00 | cjohn: So Vela has invested £2.35m in the Arcadia trial.
This gives it an 8% interest in any returns to St George Street Capital in excess of £19.2m, after deduction of sums payable to the major pharmaceutical company and certain funders, and provision for taxation.
So to calculate what level of return to SGS produces a profit to Vela:
1. £2.35 divided by 0.08 is £29.375m.
2. £29.375m + £19.2m is £48.575m.
3.We now need to add the sums payable to the major pharmaceutical company and taxation.
Taxation at 20% to simplify. (There will be tax breaks for research, I think). So add another £9.5m which makes about £58m.
Let's say, at this level of return to SGS, an additional £25m goes to the major pharmaceutical company.
(Btw nowhere does it say that this company is Astra. What difference would it make if it was? None whatsoever. It's completely immaterial whether it's Astra or another company.)
So for Vela to break even on its £2.35 million investment in the trial, SGS needs to get a return of about £83m.
Next question: what are the odds of SGS making this return?
1. What are the odds of the phase two trial failing? as a rule of thumb around a third of drugs that enter phase two trials fail. So a 0.33 chance of zero return.
2. Let's say the drug gets through phase 2, but doesn't look promising enough to attract a buyer at that point. Again a rough rule of thumb would be about 30% fall into this category. So there's a roughly 63% chance that the results are unsatisfactory or won't attract a new buyer or the Major Pharmaceutical Company to re-buy full control of its asset.
A % of the 30% in this second category WILL go on to phase three trails, but we can assume Vela's participation will be heavily diluted.
3. It's very difficult to estimate what the return will be to SGS, if the drug does have a successful 2nd phase trial that attracts a buyer.
So Vela have, in effect, bought an option for £2.35m. In 63% of cases, we can assume the option expires worthless.(In reality, in a very few of such cases, Vela might still have some return: see point 2.) In the other 37%, we might hope for a significant uplift on the investment. Unfortunately, in some of those 37% of cases, the uplift will either produce no gain for Vela (i.e. SGS bought out at less than £83m or at only a modest amount above £83m.)
On the other hand, in a significant percentage of cases - say 20%, the return to Vela could be many times their current market cap.
Overall, I think it's a reasonable wager to make. It could be transformational, but the odds are against it.
I have no position here.
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13/12/2020
11:53 | bapodra_investments: I am not aware of any link between Vela Diagnostics and Vela Technologies PLC. They are two different companies albeit both involved in COVID. Vela has a very small interest whereas Vela Diagnostics is heavily involved in this area.
Where is the evidence that Vela is invested in anything that relates to AstraZeneca and the vaccine which will lead to any significant revenue for Vela? I appreciate the recent RNS with the diabetes angle and recent investment but it is very vague with any lack of detail or confirmation of anything in relation to some of the posts I am seeing here on this forum.
When I say evidence I mean a credible document, article or something which can be shared here for all that confirms any significant link between Vela Technologies PLC and AstraZeneca?
Vela Diagnostics is nothing to do with Vela Technologies PLC but I am happy to be proven wrong incase I have missed it whilst conducting a basic check on the internet. I would like nothing more than this to be true so apologies if I have missed it.
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PLUS1
