Venture Life Share Discussion Threads

[discodave4] 25/8/2017 18:29

Hi Red,Got it from their BS:Net Assets £46.4m, Intangible Assets £56.4m, thus negative NTAV/equity of £10m, unless I'm having a bad day (which I am!) :)DD

[redartbmud] 25/8/2017 14:27

Thought Vodafone was a telecoms company:
"In February 2016, Vodafone issued a two-tranche mandatory convertible bond (MCB), the first tranche of which is due to mature in August 2017.

As a result, Vodafone today announces it is to commence a new irrevocable and non-discretionary share buy-back programme.

The sole purpose of this programme is to reduce the issued share capital of Vodafone and thereby to avoid any change in Vodafone's issued share capital as a result of the maturing of the first tranche of the MCB.

In order to satisfy the redemption of the first tranche of the MCB, a maximum of 729,077,008 shares will be issued on 25 August 2017 at a conversion price of £1.9751.

This reflected the conversion price at issue (£2.1730) adjusted for the pound sterling equivalent of aggregate dividends paid in August 2016, February 2017, and August 2017.

As announced on 19 February 2016, when the MCB was issued Vodafone also entered into an accompanying option structure.

This option structure will ensure that the total cash outflow to execute the programme will be broadly equivalent to the £1.44bn raised on issuing the first tranche of the MCB, regardless of any differential between the conversion price and the ordinary share price during the execution of the programme.

Therefore, the maximum pecuniary amount allocated to the Programme is £1.5bn (taking into account money received or paid under this accompanying option structure).

The programme will be financed out of the proceeds from Vodafone's Verizon loan notes, which Vodafone received in two tranches as partial consideration for the sale of its 45% stake in Verizon Wireless in 2014.

Vodafone received $2.5bn in cash in December 2016 following the redemption of the first tranche of these loan notes."

Where on earth do they find the time to manage the business? :-)

red

[apad] 25/8/2017 10:31

Doesn't look like anybody wants to sell their FFX.

I shall wait until the IC induced activity has subsided before looking to buy a first holding in IDEA.

apad

[redartbmud] 25/8/2017 10:11

Yes, stabilised but ex-growth.
Why aren't more HNS trusts buying in.
I have a beef about the NHS model.
Second rate local administrators and a fragmented policy.

Hmmm...

red

[apad] 25/8/2017 10:07

IDEA

"Content and Clinical, which accounts for 16% or £4.5million of Group revenues (FY2016: 20% and £4.4 million) is predominantly focused on content and clinical management for the NHS. It has seen revenues decline in recent years however this pattern has now stabilised with revenues growing by 1% in the year."

apad

[redartbmud] 25/8/2017 09:33

IDEA

Interesting balance sheet. Net current assets/liabilities contains £6.603m of deferred revenue (£6.226m 2015).
Paid for by the customer, but services not yet delivered. Typical contract for a software business that takes up front payments from customers on a contractual basis.

I am always uncomfortable about NHS contracts. They can be fickle with regard to IT and seem very happy to write of hundreds of millions of taxpayers money when there is a slight change in the breeze.

This extract from the report and accounts is interesting:
"The Group operates in two markets: supplying GRC solutions to highly regulated industries including Healthcare (which includes provision to the NHS), Complex Manufacturing, Finance, Transport and Life Sciences; and, supplying Content and Clinical management solutions, primarily to the NHS.
GRC represented 80% of Ideagen revenues at £17.5 million and continues to be the main engine of growth for the Group. Revenues from this market grew by 23% during the year (FY2015: 13%).
Content and Clinical represents 20% of Ideagen revenues contributing £4.4 million to Group revenue (FY2015: £5.5 million). The Content and Clinical market continues to be impacted by stasis within acute NHS trusts resulting in a decline of 20% in revenues from this market during the year (FY2015: decline of 3%). While there are encouraging longer term opportunities, policy initiatives and decisions continue to be delayed and as a result, the Group does not see a strong growth opportunity in the near term. The Group continues to benefit from high levels of recurring revenues from our Content and Clinical customers adding to the underlying financial strength of the business and does not expect any further decline in the current financial year."

£35.050m of intangibles being a mix of Goodwill, Software, Customer relationships and Development costs.

The amortisation periods relating to the various write offs for the various elements ranges up to 8.7 years.
Is that a reasonable longevity given the speed of development that we have become used to seeing?

It has to be the type of company that you love, and I can't get excited for now.

DD. where did you get the negative £10m from?

red

[lauders] 25/8/2017 08:37

LOL Apad. Wish you told me before ;-)

This and the puppy were bought before I managed to come to my senses from the sensible discussions here!

[apad] 25/8/2017 08:29

TD quotes FFX as 71p to buy.

apad

[apad] 25/8/2017 08:15

Decided to buy a first holding today, janeann - too nice in the sun yesterday!
On hold now.
I have access to the IC - superficial rag that it is.

FFX at 69p this morning, cf 58p placing. Looks like folks are holding on.

apad

ps
Cadmium isn't edible Lauders.

[janeann] 25/8/2017 08:08

Apad ; Idea - apparently tipped by IC ... see thread for the words! Explains the small surge this am; hope you got in if you were going to.

[lauders] 25/8/2017 08:07

red - NANO = more jam tomorrow :-(

[hydrus] 25/8/2017 06:56

Plenty of high quality companies in the portfolio also APAD. I don't trust TAP still so reduced a week ago. PURP is a small punt. However I have backed ZOO heavily - average 11p and it's now 18.5p and I think it's just started.

[lauders] 25/8/2017 02:08

Anyone tempted by KIE? Seems to be producing a lot of news but unloved. From around 1500p down to 1100p. 5.5% yield not too bad either.

[discodave4] 24/8/2017 22:43

IDEA, Negative equity to the tune of £10m!, negative net working capital (not too sure about that though, is that even possible? - Red)

[apad] 24/8/2017 22:30

Hydrus, you like living on the edge!
Better than investing in insurance companies, banks and supermarkets though :-)

apad

[apad] 24/8/2017 22:06

I did, mod.
apad

[modform] 24/8/2017 21:58

Apad, did you apply for FFX excess shares

[hydrus] 24/8/2017 17:28

Volatile day - PURP finished up, TAP tanked and ZOO continued relentless march upwards. All good fun.

[apad] 24/8/2017 14:38

I see no need for you to be humble, red.
apad

[redartbmud] 24/8/2017 13:30

You are right in your assertions but I don't see interest rates rising anytime soon. The interest on government debt is a factor.

I am coming to the conclusion that the big caps are ex-growth of any meaningful proportions for a good time to come. It was glaringly obvious, after the 'crash' but how often do we see the glaringly obvious.
They go up, they go down, just on market and sector sentiment.
One interesting snippet from the WPP results debacle was the comment on all sectors being negative, except for the UK. That is a big call.

Good small caps have an advantage against the institutionalized 'super tanker' mega caps that plough on, unable to turn quickly enough, until they hit the rocks.
Despite their sometimes heady ratings, I suspect that the better quality are far better placed to weather a downturn.

Just MHO.

red

[panic investor] 24/8/2017 13:11

FDEV - shares mag apparently

[apad] 24/8/2017 13:10

FWIW
I'm taking the view that share prices are cheap until there are interest rate rises.
Academic economists and our current, useless governor of the BoE have locked in syndrome.
When/if interest rates rise and they stop printing money then big company share prices will fall.
Not so sure about good small caps, or companies that pose an existential threat to the orthodoxy.

apad

Look upon Japan ye mighty and despair.

[redartbmud] 24/8/2017 13:10

FFX

Are you suggesting market manipulation?
Wash your mouth out with soap :-)


red

[apad] 24/8/2017 12:51

Could the FFX price be artificially high until the 58p placing is complete and then a large number of additional shares on the market bring the price down?

apad