Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video 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.
How is it a complete failure of a company?
Am I missing something in this update?
Oh I see you're looking to buy back in according to your posting history NuckyT. Makes sense.
Why post if you think the company is a failure?
Why would you want to buy back in if the company is a failure?
Complete failure of a company. The people at the top should be put in jail.
Thanks Dungiven123.
At Crystal Amber's estimated net asset value of Allied Minds, the share price would be around 49p.
I think fair value is greater than 49p.
The Fund expects the Allied Minds board to proactively seek to realise the inherent value of the portfolio in a timely manner and return proceeds to shareholders. It should be open to any structure that could achieve this objective including, if considered appropriate, reversing Federated Wireless into a Special Purpose Acquisition Vehicle (SPAC).
Over the period, the share price of Allied Minds declined by 10%.
2/2
25 January 2021 Update
Allied Minds plc ("Allied Minds")
Following its initial investment in the fourth quarter of 2018, the Fund focused on securing a major reduction in the excessive parent company costs of Allied Minds: ongoing HQ expenses were running at an estimated US$17-20 million at the time. These have now been reduced to approximately $5.75 million per annum. In response to concerted pressure exerted by the Fund, Allied Minds ended its extraordinary practice of paying management 10% of gains arising from any successful individual investment, without taking account of the losses incurred on other investments in the portfolio (the "Phantom Plan").
In October 2020, Allied Minds released its interim results and referred to the "underlying strength of the portfolio". Spin Memory was described as "the preeminent MRAM IP provider […] transforming the semiconductor industry". Reassuringly, it was stated that "Spin Memory has made significant progress against its key operational objectives since its last funding round". Allied Minds'43% shareholding in Spin Memory, based on that last funding round, was valued at $77 million. This compares with its $44 million cash cost since 2006. In July 2020, Allied Minds invested a further $4 million into Spin Memory. Spin Memory's carrying value therefore comprised around 35% of net asset value. After 15 years, Spin Memory remains a "pre-revenue" business.
Following this update, the Fund held detailed discussions with the board of Allied Minds and expressed its concerns.
On 4 January 2021, Allied Minds announced that due to COVID-19, the required testing of Spin Memory's chip had been delayed for nearly nine months, that this delay had affected Spin Memory's ability to secure new customers and that as a result, this, coupled with an unexpected loss of a government bid in late Q4 2020, Spin Memory is now facing liquidity issues. The contemplated funding round is expected to be at a far lower valuation than its carrying value.
On 15 January 2021, Allied Minds announced that its Chief Executive had "decided to step down from the board with immediate effect." Going forward, the portfolio will be managed by the three non-executive directors. The Fund welcomes the streamlined management of the portfolio, in which three companies comprise more than 90% of the latest reported carrying value.
The Fund notes that the current 28p share price compares with an estimated 26p per share carrying value of the 36.6% holding in Federated Wireless together with parent company cash of 6p per share. Holdings in BridgeComm, Orbital Sidekicks, TableUp and Spark Insights are together valued at 12p per share. Whilst there is uncertainty as to the current value of the Spin Memory holding, the Fund estimates that at least 5p per share could be achievable. Overall, therefore, to trade at the Fund's estimated net asset value of Allied Minds, the share price would have to increase by 75%.
1/2
Check out the update from crystal amber this morning. Gives his views on a ALM. No wonder ceo had to go.
Have you been in touch with IR to raise your concerns and what has the response been?
I'm pretty new to ALM, my average is probably lower than most here so can understand the frustration of long term holders but I'd be interested to know why you're still invested in the company if you have little confidence in the Board realising value for shareholders?
I hadn't visited this bb until a few days ago and read the comments about a potential delisting. I had the same fear after the update on 4th January. I contacted IR and asked them to clarify this via RNS immediately, its only been around a week since my last communication with them but I think its important that this is announced. I'll keep communicating with them but would like to hear what concerns others have so that I can raise these?
I agree their salaries are pretty excessive for what they do - I will raise questions in regards to this but welcome news that Joseph Pignato has stepped down - he was paid a total of $1,543,000 last year including bonuses. Also bonuses should only be paid in shares IMO to align interests with shareholders. Its also worth noting that Non-Executive Directors will now sit as Board members of the portfolio companies and its only fair that some of their remuneration is now awarded directly by these entities.
Assume you mean investor relations told you...
Well I have been a big supporter of ALM and the companies they have consolidated down to but after such shocking management time and time again I am unable to believe anything that they say. And just to add and cap a terrible year FW is now showing signs of weakness, unable to show or prove any real revenue and now in a battle with Google over the effectiveness of the ESC principles. “500% revenue increases this year” well from what base!!!! Not much imo..
How can we believe a word that comes from them, All they are interested in is keeping their obscene salaries coming in for as long as possible and not interested in delivering a brass farthing for the longterm shareholders.
I received the following response from IR last Friday:
"Further to your enquiry - the company has no intention to delist, rather is intent on managing all expenses prudently."
People should contact the company before jumping to conclusions. Maybe they were looking for a lower entry.
The company is really undervalued atm, just federated wireless is worth more to ALM than the current share price. I'm expecting a rerate soon.
RNS Number : 7818L
Allied Minds PLC
15 January 2021
15 January 2021
Allied Minds plc
Board change
Allied Minds plc (LSE: ALM) ("the Group" or the "Company"), the IP commercialisation company focused on early stage technology businesses, today announces that Joseph Pignato has decided to step down as Chief Executive Officer and from the Board with immediate effect. Mr. Pignato shall continue to support the Group in the role of Chief Financial Officer (CFO) for an interim period as the Board continues its search for a permanent CFO.
In connection with the year-end strategic review of the portfolio and reaffirmation of the Group's strategy to support and manage its portfolio companies towards successful financial exits, the Company's Board and management have collectively determined it is now appropriate to implement additional restructuring initiatives. With seven companies remaining, of which only three are consolidated entities, the number of companies in the Group's portfolio has reduced by approximately eighty percent since its peak.
Furthermore, as highlighted in our strategic update on 4 January 2021, the Group's progress to date together with the strong leadership teams at each company, position the portfolio to continue making progress with the potential to deliver appropriate returns upon exit if they continue to meet their planned technical and commercial goals. Accordingly, the Company's Board and management determined that the most effective and efficient path forward is direct management of the portfolio by the Board.
The Non-Executive Directors will be involved with each of the Group's portfolio companies. As such, one of either the Chairman, Harry Rein, the Senior Independent, Bruce Failing or the Non-executive Director, Mark Lerdal will each join certain Boards of Directors of such companies, including Federated Wireless, Inc., BridgeComm, Inc., and Spin Memory, Inc., to provide strategic guidance and support advancing the portfolio towards monetisation events.
Harry Rein, Chairman, commented:
"Joe has been a dedicated leader who has been instrumental in supporting our portfolio companies and helping them achieve their progress to date.
"On behalf of the Board, I extend my gratitude and appreciation for Joe's many years of service and contribution to the Company and its portfolio companies.
"I look forward to continuing to work closely with my fellow directors and each of the remaining portfolio companies to help drive them toward successful exits."
Enquiries
Allied Minds
c/o Instinctif Partners
Harry Rein, Chairman
Nuck
Who are you talking to?
The times reports today reason for yesterday’s rise is “Board takes over Management as Chief exec steps down”. Was there an RNS? I can’t see it.
Echo, people need to be very careful what they listen to on these boards and what advice and opinions people take. The best advice I can give is do your own research, do some more research then once you’ve did that, do some more. Then and only then can you begging to understand and follow your instinct. I still think there could be potential here with the current price more reflective of this business. Like I said I’ll keep an eye out and there may be a bargain to be had it this level may even be the bargain.
Ps if you’ve got any thoughts around the current situation feel free to vent
It’s a good board atm with lots of contrasting views
Hello tony
The feeling around the company is generally negative on this board so people have noted the remark regarding the cost of listing and drawn the delisting conclusion. Personally I’m not selling. I’m holding come what may.
Sorry guys I'm struggling to find where it says we're going to delist. Please could you point me in the right direction. I can see in the RNS they talk about the cost of being a listed company.
Thanks
Same problems, different management. Delisting coming soon .......SELL SELL SELL before ypur money is gone forever
I cant wait for the new CEO's strategic evaluation of the portfolio.... the last 2 of those went well!!!
Anyway lets all thank Jo for his tremendous efforts and dedication and await the arrival of the snout to the trough.
My blood is boiling at such incompetence.
yes I'd quite agree.
As share holders we've been milked to death by these fat cats
I genuinely cant fathom what they do for their large salaries.
Costs of 5 million a year to manage the portfolio, what a joke
What a joke, only now do they think to put any of these grossly overpaid idiots on the board of each of theses companies.
What have they been doing all this time, All this is going to bring for the foreseeable future is more disruption more uncertainty. And they haven’t even got rid of Pignato.
https://www.investegate.co.uk/allied-minds--alm-/rns/directorate-change/202101150700057818L/
A lot of change happening. I imagine shareholders wanting value released a lot quicker .
Pablo - thank you :-)
It’s enjoyable to read all perspectives on this board.
But reading your post has renewed some of my optimism.
I’m not selling.
Good luck all!!!
I am with Echo. Really disappointed with the latest news regarding spin. Spin was and still is my primary reason for continually buying followed by Fed. I can somewhat understand why chip testing was postponed and hence delayed. I can not understand however why any more funding would be on a down round since all other communication out of spin over the last year has been positive. This needs clarification.
Federated is coming along and the tie up with Amazon web services is big. People think of Amazon as being all about ecommerce, delivery and now streaming content. But the real money spinner is its network and its cloud services with AWS.
In regards to delisting my understanding is many institutions cannot buy or hold aim shares. Alm is around 80% held by institutions so how that would work I have no idea.
The bod really are a nightmare and their influence and package is joke. Joe Pignato needs to go and I hope Amber will try to initiate this. I have over 1% holding in Alm. 6 months ago my tp was £2. I still feel fair value is £1 all day long. I’ve been wrong before though ! Gla
thanks for the advice dad ;-)
More like a cash raising dilution, and knowing this board will be offered at a massive discount to their institutional masters. I've been in and out of these for 4 years kept being tempted by the massive upside of the portfolio companies, but enough is enough. If you think you are getting a raw deal now just wait until its effectively delisted. Only possible positive scenario is if someone like draper esprit bought them out, then I'd be back pronto.