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Could this new found transluscent transparency possibly have something to do with executive options expiry I wonder ?
"Visibility". Quite useful to be able to see what your invested in.
Perhaps this PR will attract more investors. White stick now replaced with white striped version.
Encouraging update today on their life science holdings, about time we had some good news !
I invest in companies I think are undervalued. For example, I invested in Caledonia Mining without believing Zimbabwe to be a roaring success. England is by no means such a basket case, but it is heading that way under current management.
Which makes me wonder why you are interested in this VC stock, given it is a pommie company ?
Manners maketh man but are no longer prized by the English. That may explain why your country is failing.
Not sure how relevant is Admiral Donitz ?
But I would put Puusers rum, still made in the BVI, over Schnapps any day old Kraut....
You lack taste in spirits and the Senior Service is irrelevant without colonies to oppress old boy.
So that sight of the delayed trade was over the morning "spirit cut distillation" schnapps ration ?
The Senior Service gave their rum at 11.00 I believe.
Judging by the time of your post, 11.21, I assume Scharnhorst schnapps ration was at a similar time....
I think you're right. I'm seeing what looks like a cheeky little delayed trade this morning.
Au contraire barchid, for a while everyone wanted a Scharnhorst and demand outstripped supply before the bottom fell out of the market. 50% is an unusually wide discount. This isn't a typical VC punt either. I think of it as a spirit cut distillation with some off notes.
I did indeed see that this morning, most done yesterday & reported later from what I could make out.
Perhaps this could be a turning point, I guess they were placed ?
Guys, fyi, if you may not have noticed, a seller on 14/9/20 sold £2mn worth of shares. Mmmm....... potential overhang to come
Investors chronicle is unbelievably influential. As with most tippers, similar to gamblers, you only tend to here them talk about their wins.
I would like to see an article on all their loses and what went wrong.
"a good product that few people want", not unlike the battleship you share a name with ?
I suspect no one cares about IC sheep, but the larger issue is surely that if a lot of people have done badly in this stock they will think twice before reinvesting ?
It has normally traded on a wide discount to book but that is usual with VC companies, surely.
A couple of decent disposals though, would work like magic on the sp, imho.
Who cares about the bleating of IC sheep?
As for the fair value question, the investment case is that the share price is about half fair value. It will correct if balance sheet companies make net progress. Some of their companies are growing quickly. I'm not convinced about others, particularly Concepta. I would have dropped that a long time ago. It looks like they have a good product that few people want.
Thanks for clarifying that, I was only going from memory as I didn't have their accounts to hand when responding to you.
I think we are both pretty much in agreement on this company, after all there is a price for everything !
I openly admit to being a cynic on the management at MERC, but not such a big one that I don't see the potential value. I suspect a lot of investors feel let down on this stock (not least the Investors Chronicle team who had pushed this from the higher levels to their readers) which could be why the shares have been languishing recently ?
Great Qn - on FV caln
I rechecked and you are spot on. My bad. Thanks for spotting that. Per https://www.edisongroup.com/publication/successful-exit-of-the-native-antigen-company/27259/
They will book 1.9mn pounds (not sure whether all will hit H1) and not what i stated earlier of 4.8mn.
Combined with the additional 3mn quid for NVCT AUM - H1 is still looking pretty good.
Furthermore, 18p appears to be the resistance level. Also, Mercia, like FIPP, IPO, any good news w.r.t to investees, SP gets a jab.
I largely agree with you but are you sure that native antigen was in the accounts at cost & not the MERC fair value calculation ?
Most stocks I am aware that they hold are in at their "fair value" if that is the case the realised profit will not be that large, I presume ?
Yes management do have some skin in the game but they amply reward themselves with option allocations which I find a little difficult to swallow when the share price has been in a tailspin from 60p to 18p as Boards points out.
I do think getting away from Woodford & Barnett is a good thing, also the replacement of Ms Searle, their Chair who we shared with Woodford which I never saw the sense in.
They were most reluctant to change her too, which still raises governance issues in my mind.
Nevertheless, everything has a price & this does seem pretty low, hence my dipping a toe in again.
I think the recent fall in SP has been reflected across board in all sectors. Merc was also affected. What I am surprised about is that I think investors have forgotten:
1. MERC sold off Native Antigen for £4.8mn in July 2020 - this trade sale will be reflected in H1 (i.e. interims 30/9/20) (presumably the original cost of investments are not large so, I'd guess that they stand to gain £4mn+ in net profit from this transaction alone).
2. AUM due to acquisition of Northern VCTs will add additional rev of £3mn to H1 (and another £3mn to H2) Regardless of lockdown or not, that 2% fees p.a. still applies. Nice.
3. Hopefully all the bad news, i.e. provisioning / write offs have taken place in YE 31/3/20 accounts.
As a chartered accountant, if I were them, I would probably have done given that the SP was already down in the dumps and to use the current situation to chuck all the bad news out all in 1 go.
4. With re-opening of the economy, investee companies on the balance sheet will benefit again and going forwards, all investees that have been provided for previously, could have their provisions written back to the P and L (thereby raising profits), once economy begins to have traction (from 12 months time?) . Merc, at these prices, is the kind of company that you want to hold and buy more at these prices, given that the economy is about to open up again.
5. Any potential good news flow w.r.t investee companies, SP could rise 5% for e.g.
Merc strikes me to be significantly underrated. Yes, what they did last autumn for PIs was not pleasant and I'm sure that's left a bitter taste in PI's mouth. In saying that, management also have a lot of skin in the game so they too, were diluted in the process.
Primarily based on 1,2,3 above, I'm going to buy more shares.
I did decide to join the crustaceans again on Friday, just dipped my toe into the rock pool but I think from my last sale in November at 27.8 it was a case of pee or get off of the pot ! With the turmoil going on with fund managers at present my line of thinking was that it could be taken under the wing of a larger house who wants exposure to tax wrapper products, especially now Woodford & Barnett are out of their picture, it makes for a much freer float. I certainly lost nothing by my cynicism & waiting, whether or not I gain anything remains to be seen !
Very difficult as to where support lies. In reality I think this is as good an entry point as any we have seen, yes a big discount to perceived nav but that is not unusual in VC as we well know. I suspect they are scarred by the constant underperformance of management, even at these levels. But down here, in present climate, they could well prove a good lth. If they had a couple of their holdings become listed at good levels that would change everything.
I am looking to go in now, tbh. Have traded in them over the years with moderate success, (better than my EIS/SEIS with them!), I like the fact that the twitterati seem to have lost faith, that is normally a good sign, empty vessels etc....
Sorry to hear the omnipotent one is unwell and your culinary skills have been bought to the fore. I'm sure you will use your skills to provide her with rejuvenating sustenance, or is that a risk too far :). In any event, I wish her a speedy recovery.
Perhaps you could cook-up a better SP, was at 17.58 but has recovered slightly. Not sure where the SP support lies.
Sorry for the tardy reply but "she who must be obeyed" has been ill so I've been making my own thermidor.
Well this almost beats the Scarecrow (RSC variety) youtube but I guess he is way too busy lecturing anyone who will listen as to why the various Covid stocks should be bought, just to keep the medical lecturing still live on the linkedin page.
Certainly MRC have not been a Covid hedge, despite the inordinant interest shown by the ****terati in it.
Any patient MRC watcher would have known their mantra, promise more & deliver less & so it seems to be going on. Every time one of their "wonder companies" got a puff it was never enough to move the dial.
So scarecrows like Crows, lounge lizards like lobsters...
Maybe at 18p we see the low ?
I have my doubts, but who knows eh ?
60p to 18p. A possible basis for PTSD.
Hold on to your hippocampus - https://www.youtube.com/watch?v=6ypVbUBEZHg
So we are part Lobster, therefore, do contemplate what is under the lemon butter, as they are our ancient ancestors.
"Rise up and start snapping or be crushed into a thermidor".