We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
@IntrepidInvestor : SP is now 119/121, so nearly time for your next top up ;-)
I'm truly amazed by this price. It's the sort of thing you'd expect if something 'untoward' was happening with the company, but I'm not aware of anything, is anyone else?
The price fall of ARIX this year not so different to BIOG, this gives me hope that it is largely a sector trend and that there is nothing fundamentally wrong with ARIX itself
I am going to dabble via HL as the sp to NAV seems tempting and the management team strengthened by the return of Mark Chin. I also put it into my FT portfolio and noted the forecasts are all up from around this sp, the lowest suggesting 187p by next year.
Buy backs have their place, but agree it seems more sensible for Arix to invest if they have/can find suitable targets. My concern with the buy back was less that it happened and more that the shares are not being cancelled but being held in treasury, so overall share capital isn’t reduced. The temptation for mgt to then allocate those shares as part of share based incentives mean we may only be seeing money spent on future expenses. Anyway, glad it’s stopped and agree that the discount to NAV looks daft IMHO
Intrepid.
Disagree with your general premise on buy backs, can be good or bad depending on the company and management.
I think you really have to put the buy back into context for ARIX.
- they had an absolute tonne of cash from if I remember VeloBio which represented a significant % of market cap. May be hard to deploy such a large amount in the short - medium term.
- they are on a the most stupid discount to nav, and even more stupid if you take cash out. Buying in the market should uplift the share price, but hasnt done so here yet.
Still have issues with Acacia, anyone who is still talking to Woodford needs questioning
Hi IntrepidInvestor, interesting thoughts, and let's hope things are finally turning. If the SP does "drift to below 120p" then the non-cash holdings will be valued at almost zero!
I think there are times when a buyback is justified, e.g. as a tax-efficient alternative to paying a dividend, but I agree that it doesn't seem to have worked very well in this case.
Now here's an intriguing coincidence. They bought back 6,429,853 shares in total before halting today. If they had just bought another 13,250 then it would have pushed Acacia's holding over 20%, and triggered a TR1 RNS. That's assuming Acacia haven't sold any (and that my maths is correct).
Just a coincidence, or perhaps not wanting to give Acacia another reason to claim a greater presence on the BOD?
Hi all.
Not posted on this co’s BB before. I’ve been invested for several months and have just topped up, and will do so again if these drift to below 120p.
I almost sold out when the BoD announced the share buy-back. Buy-backs are usually a terrible idea, usually motivated by the BoDs need to hit EPS or SP targets for their own bonuses. A co entering a buy-back is basically saying they cannot think of anything better to do with the money; given they are in business, this is an admission of a lack of leadership; this is particularly true if the co happens to be an investment vehicle, as is the case here. So it’s an encouraging RNS that the BoD have changed tack.
I suspect that either the new board member insisted the policy be abandoned or the BoD realised they were wasting money and had actually made their bonuses smaller (having paid an average 179p and the SP is now 140p means they are showing a loss of c. £2.5m or 22%.
Hopefully they realise the folly/absurdity of an investment vehicle buying its own shares and what that signals to the market and they don’t attempt to do that again.
All the best
Intrepid.