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Wakey wakey
News coming
When this moves it moves up quickly
Except for the time taken for any of that to show through. Risk/reward looks low but no use if you have to park money for a long time with no return.
Risk/reward low, opportunity cost high.
So IPO holds 11.1% of oxford nanopore which is worth £122 mill, has just had a price target raised to 350p from today's price of 134p which if it comes to fruition gives a value of £300 mill... cash in the bank £225 mill.. thats over £500 mill. market cap is only £470 mill. everything else is a free ride... little downside risk from here I feel
Big discount to NAV means no rush to buy. The discount won't close over night and a good idea to wait for confirmation it is closing before jumping in with the risk of another 6 months+ in the doldrums. If you miss the first 10% of a turn-around it's noise. Until then you can make 10% elsewhere in my opinion.
The trap is focusing on discount to NAV expecting it to start to close just because you bought. The market doesn't care that you own this or anything else. It's a gamble with an unknowable delay to be proven right and in the meantime life goes on and other opportunities float past the window.
Youhavingalaufh; I'm a mong term holder and fan, but my fan is wanting. The points you make are pertinent, which increasingly I'm agreeing with you on. Is it jam for you and me tommorow, tommorow, tommorow, or funded pet projects for scientists and healthy remuneration for mgmt, whilst ticking over, but only supporting those ambitions/costs and not returns to shareholders?
Darientaylor; agree you are buying at a massive discount to NAV, which I think is probably valid. But you don't have a comfort of such, is the SP, in 18 months lost more. At full realisation, (of NAV), you'd still be underwater. And even if you bought today, that NAV comfort blanket is only warming if it is returned materially, fiscally to shareholders.
The buybacks abandonment of dividends shows their is no focus, or urgency to prioritise profits to shareholders
Whatever way you look at it, you are buying assets at a 50% discount at the moment
All jam tomorrow and a big discount for good reason. Buy and wait and meanwhile other opportunities sail by. Do you know how much this has to rise just to compensate for inflation since it was last 2x the current price plus capital loss. Avoid until proven it can gain some momentum unless you don't care about a return on your money and can wait and wait and wait.
Arg.
I speak with a lot of people at work on this, one recently went to tokomak, on both the engineering and the science. All reckon mid 30s, US I would say is leading with recent advances.
No doubt the UK will be the brains here and then not have a clue on commercialisation.
According to the Telegraph fusion energy may be closer than everyone thinks, maybe even before the end of the 2020’s. The UK is apparently leading the race to produce limitless energy from fusion with 2 main start-up companies - First Light and Tokomak Energy. IP Group owns 27.5% of First Light!
https://www.telegraph.co.uk/business/2024/03/13/nuclear-fusion-energy-britain-grid-sooner-than-you-think/
Dunno what went on there JWBellamy,but an holdings rns must be due now.
i can remember when baron,was a poster on hawk,about 12 years,when he was a poster,on lse.
Yeah just saw @baroninvestment tweet about that also
Second highest volume day in history. Must be something brewing, that’s wild.
85 million atm?
Realeased out of trading hours ….. I always think it’s cowardly when companies time their releases thus……
Today's share buy-back announcement looks like a typical investment trust strategy to scenarios where the SP falls significantly below the underlying NAV.
Like many, I've been worried as to how realistic the declared NAV for IPO is in reality. So, I am pleased with today's announcement because it shows confidence from management on the realistic setting of the NAV - if it really is 1.26 per share, why would you NOT buy back shares at 50p, particularly when you have gross cash of £235M and have made cash realisations of £38M?
My view is that, as interest rates fall over the next year or so, the NAV should naturally rise (ignoring the impacts of value inflection events at investee companies) and the gap between it and the SP narrow.
I don't tend to put large amounts of money into riskier stocks such as IPO, so I probably won't top up, but I will certainly maintain my holding until it's at least north of £1.00 a share.
NAV at H1 was 126pps.
A significant buy back makes very good sense.
IPO wasted money on that waffle.
Just watching the excruciating ESG presentation live.
One reassurance is that Greg Smith is visibly appalled by the rambling virtue-waffle.
Https://www.thetimes.co.uk/article/jazz-global-licensing-deal-swings-ip-group-shares-rjnt0dmn8
This is good news….. it’s been so quiet recently that I was wondering if anything was lurking in the background.
Market is valuing the firm on the potential future cashflows of all the companies it's invested in. Currently most of them are burning capital and discounting their potential future cashflows at the current rates means relative value has shrunk drastically. Essentially IPO is a bet on innovation and science, markets prefer certainty :)
Most of the ventures seem private firms. If they wanted to sell ONT they would not get 200p. They would likely have to accept below that price. 180p or less? Unless ONT suddenly showed it was worth several billion. For a 1.7bn firm it's turning over less than 86m in H1 with a 70m loss. 10% of ONT is about 170m. Meaning the other investments worth about 300m here. Market is valuing firm at it's cash and cash equivalent, value.