The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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So Klarna going great guns signing major deals with Expedia and Uber all adding additional value prior to IPO where Chrysalis are holding a chink of stock.
Market got concerns
Https://www.ft.com/content/bf34e647-d39b-4fd4-adcb-2a82179875e7
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https://www.ft.com/content/bf34e647-d39b-4fd4-adcb-2a82179875e7
One repercussion is that we may see more fintechs list on stock markets over the next year. UK-listed venture capital fund Chrysalis — one of my favourite investments at the moment — has a stake of about 1.1 per cent in Klarna, on a net asset value of $11bn, whereas the rumoured IPO price is closer to $20bn. Another key holding for the investment trust is insuretech business WeFox, which is showing signs of rapid growth.
Someone hasn’t really done their homework
Hope no one gets sucked in by the ramping here and on twitter
Of course there are risks you dopey get.
You assume nobody knows about them but you. Meanwhile your own investments and shorts continue to tank.
Funny that you don’t highlight the significant risks
Most of the time it pays to be on the opposite side of the trade to JWBellamy. She/he has had some absolute stinkers this year alone. If they say it stinks we could be at £5 soon.
No why whats iffy
Anyone spotted it?
Anyone know...Klarna fine ?
Https://www.cityam.com/starling-bank-poaches-ovo-boss-to-be-chief-executive-ahead-of-planned-ipo/
Https://www.ft.com/content/9b120706-17eb-46c2-983d-53cf1e2f88fe
Https://open.substack.com/pub/theoakbloke/p/chry-stallising-value
Https://www.datacenterdynamics.com/en/news/ai-chip-maker-graphcore-in-talks-over-400m-sale/
It needed my intervention to get the two parties talking which is odd.
Why buy? https://quoteddata.com/research/chrysalis-investments-turned-corner-qd/
@broomtree, I'm in a worse position and can't even average down as ii won't let me buy any more because Chrysalis haven't filled in a form. I've emailed Chrysalis and have received a response but nothing has changed yet.
There is no doubt things are changing and that is starting to be reflected in the price….. unfortunately I need NAV to break even! Averaged down in the past and it was a mistake. Have been reluctant to add given history but it looks like the only way I might recoup some funds!
Hoping that we will see a breakout from this trading range shortly and an attack on 100p
Https://www.investmentweek.co.uk/news/4170630/peel-hunt-upgrades-chrysalis-potential-catalysts
The analysts argued that the "market has been slow to recognise the potential catalysts on offer" for a portfolio that "typically responds positively to catalysts, either at the portfolio or the company level".
Many thanks for your reply ukbbbbbb
IMHO..there are at least three aspects to this..
Firstly start ups/early life companies which chrys investment in require cash during the early years to get going. When interest rates are low this is 'easy' but when interest rates are high this increases costs , changes the risk profile and reduces the amount of future profit in the equation.
Secondly when people can earn 5% risk free from a bank then they are less likely to invest in higher risk investments which means there are fewer buyers. In chrys case this has been amplified by Jupiters decision to sell out (from a holding of over 25%)
Thirdly the IPO market has effectively been closed for almost 2 years so realisations from the chrys portfolio have been thin on the ground. A knock.on effect of this is that the valuations of the portfolio have not had a lot of support from the market in terms of confirmation that the are correct/under value.
The good news is that all of the above is changing and the headwinds are about to turn into tailwinds.
"...making the Chrysalis shares trade at a 52% discount. We see no reason why the carrying value of other major assets is too high, particularly as the interest rate tightening cycle in the UK, US and Eurozone comes to an end and discount rates start to fall..."
Would some knowledgeable person mind explaining to me the correlation between US/UK interest rates (expected) to come down and the effect upon the NAV discount likely to narrow, as I don't understand?
Thanks
Interesting note from the analyst. I'd add that the forthcoming disposal cash if/when used for buybacks will boost the share price even further and reduce the discount particlarly as the Jupiter selling pressure ends.