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Yeah, we have been undervalued based on our our investment value for a very long time. We have been around 50% of asset value until recently when our SP has hit new lows. Ironically as our SP has decreased our investment value has gone up slightly, further contributing to the widening disparity between MCAP and investment value.
At the time of writing out Investment value is circa £5.3m and our MCAP is £1.95m.
We are currently value at 36% of our investment value.
Even if we sold all our investments at a 20% discount to current market prices, the cash proceeds would be over double our Mcap!
Agree that the portfolio is beginning to look a little more interesting with many off their lows. I reckon there are probably 5 shares that need to be got rid off which may also help with the overall value perception.
Typically gone to NT to buy when I want to put some profits from ENET in here !
Agreed! The undervalued sp is not reflective of how well we're doing on paper with the investments
The main point is a lot of our investments are doing way better than they were …Skillcast being another example .
So although the vela SP may have sunk lower than it should have …it’s potential bounce back when people cotton on to how devalued we are could be quite impressive
After some trades, I think current holding is 595,902 @ 58p (unless some sold since last qtr)
Did you pick up on the recent RNS announcing a name change to Finseta (FIN)
https://www.lse.co.uk/rns/CSFS/proposed-change-of-name-to-finseta-plc-il46nlbddq5vrwv.html
thanks ltd, so difficult remembering all our buy in prices and remaining holdings when the website info is so sp****.
Cornerstone buy in was 50p from memory. Seeing it was at 6p not long ago then it’s certainly bounced back. Our ENET holding is not much more than is held by many of the traders playing it again , so I would write that one off as loose change …although it has been good for a dabble today
ENET too.
Big buy of c 5k gbp on top of the biggies here first thing. A slightly better day by Vela’s low standards.
Cornerstone flying!
Yes some decent buying first thing at a very low price. The smaller Vela investments are doing well, CDT will have news, but for this last quarter the report will I guess focus on some tiny sell offs and news of those portfolio businesses that are doing well. Let’s see ( in 6 to 12 weeks ).
With financial year end on 30/03 they will have had to present the accounts as a going concern, so you'd think leading up to that would be moment they sold some CDT. It would be insane to sign off year end accounts with cash balance in dangerously low £60k region reported in Feb, when had this liquid asset on hand.
Some decent buys going in first thing. The first quarter of 2024 is done. I think our quarterly update will be another 6+ weeks away though (the BoD will be busy so this won't be a priorty....) so we will find out then what they have sold in the quarter.
I know a change of strategy was mentioned on here last week, but what is the strategy currently? We have no cash to invest. We haven't invested in a company for nearly a year and we have resorted to selling investments at losses to keep the payroll going. I'm not sure waiting for CDT to increase over $5 represents a good investment company strategy?!
I’d prefer them to be paid in shares an£ I’d prefer any comp to be performance based. But then we’d be a company with a REMCO and external reward advisors and these latter two things would cost more than their salary or fees. So, as said previously it is not the biggest issue here. Do I wish they’d invest? ABSOLUTELY THEY SHOULD.
So Hogbog are you still defending the BODs wages...I know my investment drops every day..but it's good that their's isn't too depleted.
With not a single share owned between them
& therein lies the problem. As mentioned previously, there are no consequences for their actions. The Directors are not answerable to anyone but themselves. They will continue to extract £5k cash each, each and every month for the foreseeable future (years?) by whatever means available.
It’s a reasonable concern. I actually suspect they could not sell CDT at the times we’d all have liked due to delays in the conveyancing process between various intermediaries and national boundaries et c. My belief is that CDT will have news, and that will uplift its price quite dramatically giving the board opportunity to sell at good profit.
The question is when do the BoD think is appropriate to sell some shares in CDT? They have had the opportunity over $5 to sell some by declined. More recently they could have sold some over $3.5 so when is the right time? Apparently selling other investments at heavy losses makes better sense (and it may turn out to be true if CDT goes toward $10).
Will they wait till they have no other investments to sell off and then start selling CDT whatever price it may be?!
You’ve taken my “ever positive” spot on the board, good for you ( seriously). I’m hoping my positivity returns. The sun is out and I’m spend8ng s9mewhere on Monday, not sure where yet!
“ Yeah that's definitely a concern, if hypothetically CDT suddenly bounced to $10 and they sold the lot for a $10million+ windfall would anyone trust them to reinvest it sensibly? On past performance I don't think anyone would. ”
If that section materialised it would of course prove they could make a massive return on an investment by being a) patient and b) negotiating a very good deal with the put option .
Dead ducks would soon be forgotten and many of our larger investments still have huge potential when the market turns
4) wind down in an orderly manner and distribute CDT windfall and £ from liquidating other investments to SHs.
1) new strategy
2) full enterprise sale at true value
3) massive external investment
One of these needed soon, plus a massive CDT bounce and calculated sale/placing of those shares needed.
Retiring at age 100 otherwise.
Yeah that's definitely a concern, if hypothetically CDT suddenly bounced to $10 and they sold the lot for a $10million+ windfall would anyone trust them to reinvest it sensibly? On past performance I don't think anyone would.
That thing in the Feb quarterly RNS about the potential £15mil injection from the third party did mention them “amending the Company's investing policy so as to concentrate on the life sciences sector” which is the first time they’ve mentioned potentially changing their MO (although I vaguely recall something about Laiker wanting to change the investment strategy a while back but it was just in passing). Problem is, since when was that their speciality? One lucky hit on the initial SGSC investment does not an expert in life sciences investment make…
@BouncersDream, I would agree with your sentiment that "AIM / small cap market being a bad place to hold long term". However that is the Vela Business Model and they have stated they will continue with that strategy. So even if CDT pumps a little and there is a cash out, then what next? What would be the point of just re-investing back into AIM/Aquis?