Woodford Patient Capital Share Discussion Threads

[biggest bill] 06/9/2019 13:30

If the true nav is say 40p, the gearing level exceeds 30%.

[cc2014] 06/9/2019 13:29

Libor +1.5%. One wonders what the arrangement fee is on that?

The challenge for WPCT is the published NAV is declining at a fair speed which will put more and more pressure on the gearing percentage.

[careful] 06/9/2019 13:29

Libor +1.5%
Libor 1.95% today.

Not too onerous 3.45%.

If lenders are not too worried why should we be?

[dr biotech] 06/9/2019 13:03

I don’t agree with the MF. If they sell new shares that undercut Woodford (or any other forced seller) then they will just drop the price further. You don’t want a forced seller as a holder at any point.

[rcturner2] 06/9/2019 12:57

topvest, appreciate your point, but the lender is not worried. They get their cash back whatever happens. Gearing of 17% will not touch the lender.

[topvest] 06/9/2019 12:50

First sign (via RNS anyway) that their debt is a problem...

"The Company's borrowings as at 4 September 2019 were GBP113.7 million. While the absolute level of borrowings has fallen since the last update on 29 July 2019, the gearing position has increased marginally to 17.1 per cent. of net asset value as a result of the recent reduction in the Company's net asset value.

The Company's existing Facility contains provisions that limit borrowings to an amount based on the value of both the quoted and unquoted holdings (the "Borrowing Base"). In the event that valuation changes in the quoted and/or unquoted assets in the portfolio result in the amount drawn under the Facility exceeding the Borrowing Base, the Company is required to reduce borrowings as is necessary to bring the amount drawn under the Facility to a level within the Borrowing Base.

The Company has agreed with its lender greater flexibility around certain obligations relating to the Borrowing Base for a period of time while the Company pursues the disposal of certain unquoted assets. WPCT has agreed to make no further investments during this time without the prior consent of the lender (such consent already provided in relation to certain existing commitments). WPCT has agreed a revised interest rate with the lender of LIBOR + 1.5 per cent."

No investments without prior consent of the lender and an increased coupon. Lender worried!

[andy] 06/9/2019 09:22

Interesting pint from the fool article link above:


"Furthermore, with many of the investee companies being loss-making, and requiring more rounds of funding to have any hope of reaching commerciality, it’s not in their interest to see Woodford sell his shares to a new investor. This raises no cash for the companies themselves.


Far better for them to keep Woodford locked in by offering any interested investor new shares at a discount to Woodford’s selling price. This raises cash for the companies, rather than for Woodford, but puts further downward pressure on their valuation and on Patient Capital’s NAV."

[henchard] 05/9/2019 23:00

A range of opinions today on the WPCT discount to NAV:


"some analysts told FTAdviser they believe the shares are now a buy."


"For now, I see the trust as uninvestable."

[ltinvestor] 05/9/2019 22:28

Is Woodford finally selling Autolus with 7.7 m shares transacted and an uplift of 21%?

[topvest] 05/9/2019 20:28

Selling NSF now is typical Woody selling after being much more positive about prospects at double the price. He should have sold a long time back. It's going to zero as it is too highly leveraged.

[buywell3] 05/9/2019 15:09

c when buywell goes away the post rates drop

u notice that ?

that's cos buywell invites comment

[kpo115] 05/9/2019 10:03

I like pressing the "top posts" button on my infrequent visits to this minor septic tank. The posts there probably reflect what people really think and there's certainly more wit on display. Unlike the jonwig posts.

[pete_bane] 05/9/2019 08:29

Oh dear, Wally's back! We've had 3 blissful days free from his sanctimonious guff. I can smell the incense, LOL.



P.S. "IH" has nothing to do with rockets, OK? Ignorant sod.

[spectoacc] 05/9/2019 07:32

Thanks, a good read. His attempt to push NSF & PFG together cost NSF a large amount of cash - now he's dumped at 40p.

Also liked:
"The manager also last week offloaded around £42,000 of shares in Thin Film Electronics (THIN.OL) as the Oslo-listed specialist in printed electronics announced it was ‘seeking alternative forms of financing to meet its financial obligations’ after a proposed private placement of shares was cancelled. Woodford sold around £100,000 of shares in the company in July.

Woodford invested $42 million (£34 million) in the company in 2016. The shares have crashed by more than 97% since then."

£42k - doesn't even cover Woody's fees. Down 97%. Ace investor! Good luck making that up on BATS.


And:
"Malin, which also invests in Immuncore, has written down its stake in the business ‘because of an ongoing financing round which will be completed at a lower company valuation than implied by our previous valuation estimate,’ it said in half-year results."

As we've all been saying to WPCT investors - your unicorns are misvalued, in many cases via later, much smaller funding rounds at ever-higher prices. Reality is that valuations are significantly lower. Immunocore is one of the better ones - wait till the likes of Benevolent raise more cash. It's not rocket science, which in IH's case, is a pity.

[jonwig] 05/9/2019 07:03

A round-up of Woodford's latest dealing (not wheeling as the wheels came off a long time ago):



Did he see himself as the master deal-maker getting NSF and PFG hitched up?

"Sick transit glorious Monday."

[trollwatch] 04/9/2019 23:17

Thus spake twinky topvest the supreme prophet who has now made 1000 predictions, none of which has come true!

Silly little troll....

[topvest] 04/9/2019 20:00

Blimey the price is going up. Maybe the last time for people to get out before the next inevitable plunge!

[luisfrg] 04/9/2019 10:38

Buy into JOG and STX to recoop losses...big news imminent

[jonwig] 03/9/2019 18:35

WPCT at #435 as of today's close:



Crumplestiltskin.

[henchard] 03/9/2019 18:16

Ditto Funding Circle ... were you just being sarcastic?!

[henchard] 03/9/2019 18:12

Knowing,

WPCT is going to suffer the ignominy of being RELEGATED from the FTSE 250 to the FTSE SmallCap Index!