The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen 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.
I mentioned some block trade sales below the bid yesterday. Previously such trades were absorbed at the mid-point where there were matched buyers. Perhaps there isn’t much interest from third parties at the moment so Mercia are taking up the slack with the buy-back. I’d rather have received a special dividend but perhaps it’s needs must.
But almost no interest
doesn't help that it nm to buy
And of course, if your your itching to invest : https://www.investegate.co.uk/announcement/gnw/northern-venture-trust--nvt/offer-update-utilisation-of-over-allotment-/7907007
Yo Ho Ho...! 🎅
Buying back 4% of outstanding shares isn't going to move the dial much, but the dividend is always welcome.
It's risk-off time for everyone, but the spin would be, that they are happy to invest in themselves, which is a vote of self confidence. Competent I like.
I think that with competent companies that know how to make money these share buy-backs and dividends are a bit of a "damned if you do, damned if you don't" type of thing.
....Dividend..!, ...Share Buyback.....!, No debt and loads of cash ....! It's Christmas...!
Around 8m shares sold in three blocks at 25.5p when spread at 27-28p. Someone was selling blocks at around 21p recently so I 25.5 seems good in comparison. One or more of the large holders covering redemptions?
Apparent sales today at 27.49p are buys
Selling nDreams has taken out a big chunk of their gaming portfolio. Let’s see what they say tomorrow.
..and my pre-Xmas message to Santa Mercia is diversify your sectors a bit more. Too much in any one sector can be risky, e.g Gaming does cause mental health problems. I know evolving cos are where your market is but by its very terminology it is a wide field. Spread it around - Oh and jolly well done so far!
Dear Santa MERC, more like Oxgene, Faradion and nDreams please. Big stakes at an early stage. Not so much Sense Biodetection if you don’t mind. A small percentage in an already overhyped stock left you exposed and you blew your £2m stake in 2 years. Lesson learnt hopefully.
"Awesome....! totally stoked...! perfect, super cool, alright.....!"
"Can you make me a brew ?" must be the 1st question asked of any potential AI assistant.
"Yes Dave, here is your PFAS brew" .. "Enjoy...! , you obsolete hairy deuce bag of salt water". "Is there anything else I can hurt .*..^./ ....help you with Dave?".
Have been building up gently since 2019, (actually no other option!) always liked everything to do with Mercia, especially their long term plans, analysis during 6-monthly updates, cash investments and cash held on the balance sheet as and when. They always seem to invest wisely, in the main, so they are one of the few companies I keep. When the dividends started I was happily surprised, even more to like. So for me it's carry on Mercia, as you are doing please. Regards all and a Merry Christmas, MIG
I’m not convinced by this Athena bird Boards. Say something pet or put the kettle on.
https://engagevr.io/ai/
A Meta Quest 3 VR headset. An item that can be used with Engage "Link", a software platform produced by Engage XR Ltd. for Meta.
Coincidentally, as Engage XR's share price looks good value ATM, I confess to a nibble (shameless ramp). Next Figures out in Jan. 👍
The £500 paid for a Meta Quest 3. It has the unexpected perk that when my wife calls during the day I can honestly say I’m up to the eyes in a big power wash job. 😉
🤔 Maybe that's why the UK Government want's them off their balance sheet.
NatWest aren’t following the lead of the central banks. They paid us £500 to open a couple of current accounts and have generously provided a no-fee 14 month 0% rate for a £6k credit card balance transfer. Maybe I should write a letter of thanks to Nigel?
Eminently sensible. Increased liquidity and a reduced balance sheet, is the exact current strategy of central banks.
M2 money supply drying up; commercial and personnel debit increasing; consumer spending decreasing (70% of GDP); reverse repo cash declining. The "Lag" effect (as commercial & personal reserves are drained) , probably means we are only at the start of the global recession. Merc preparing for the inevitable.
I don’t know about idle cash. It’s a buffer in difficult times. Everything is peachy just after selling nDreams, but if they hadn’t been able to make that sale due to something like the Wall Street Crash that has been predicted for years but hasn’t happened yet, they wouldn’t have looked clever coming back to market to raise money to keep the portfolio companies solvent. When the financial backdrop improves they won’t need such a big buffer. At the moment I believe their aim is to maintain enough cash to service the portfolio for two years.
I do also agree with investing cash (it’s the better return on capital) my point is buy backs should be considered to 1) close gap to NAV 2) they now have c.£60m of cash! Last year they deployed £20m. Let’s say they have a good year and make the most of this dip and deploy £30m that’s £30m of idle cash
A special divi would be even better tbh
I agree with re-investment of cash as they’re good at it and in the long run the benefit to the company will be far higher than share buy-backs. I’m also a fan of dividends. Company sales from the portfolio are lumpy whereas dividend returns of cash to investors are regular and progressive. Mercia has a prudent CFO and I trust his management of the company finances. He keeps getting asked about share buy backs and gives coherent and well argued responses. The issue will no doubt be raised again at the interims presentation. It’s becoming tiresome for old hands but it’s a valid question and they will be attracting new investors who aren’t familiar with previous presentations. I am looking forward to a dividend increase in the interims.
Great news this morning.
MERC a bit of a hybrid - trading below NAV for its direct investments and then the investment management arm providing a steady flow of revenue
All these stocks beaten up - will add to grow and augm this month. For less risk Cldn is great as it’s being treated as a PE stick when it is only 50% PE.
Could easily be persuaded to double up if price action works out
I like your ambition. Mercia has performed when the market hates UK small caps and private equity. Imagine life when sentiment turns.