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That came out of the blue.
Firstly surprised they took on this holding a few short months ago when they were not happy with the management team.
Not sure whether they now just see the opportunity for cash with the discount to nav, if there were a large dividend rather than reinvestment I think this would increase the share price immediately.
With acacia wanting to jump into bed with the idiot woodford, I have more faith in the arix board.
There was no hint of all this in the webinar, nor in this interview with Robert Lyne earlier today:
https://www.vo%78markets.co.uk/articles/arix-bioscience-final-results-eenergy-interims-results-and-glen-goodman-on-crypto-af47175
In fact near the end he says "We have an expert team that selects and manages these investments". Acacia clearly disagree!
Yes I agree. Though Acacia seem to feel that the board aren't interested in conversing with shareholders, however large.
I think I'd like to see the response from the BOD, which I'm sure won't be long in coming.
They make interesting points.
What do you think?
Well, I certainly didn't see this coming...
https://www.investegate.co.uk/acacia-research-corp/rns/acacia-initiates-plan-to-improve-arix-governance/202103091743367082R/
There is an investor presentation at 12 today.
Have held for sometime now, through loss and highs. My largest investment trust holding in my portfolio of about 30 which are all long term holdings.
Hi skid35, you just beat me to it with the tax observation!
Proactive article:
https://www.proactiveinvestors.co.uk/companies/news/943327/arix-bioscience-sees-sharp-uplift-in-net-asset-value-in-2020-943327.html
I wonder if they'll do an interview?
Two RNSs today, not showing here yet: annual results & new portfolio company.
Results look good, and there's a nice bonus:
"
Taxation
As a UK operating group, Arix is subject to UK corporation tax on the majority of its activities, which can include the gains arising on investments. However, wherever possible we aim to take advantage of the UK's Substantial Shareholding Exemption (SSE), which exempts taxable gains or losses arising from the disposal of shares, where certain conditions are met. This is a nuanced exemption and is always dependent on individual investment fact patterns. For the largest realised gain arising in the year, the sale of VelosBio, we are now confident that the entire gain meets the conditions for SSE and therefore expect it to be free from corporation tax. This exemption will also be claimed for the realised gains arising from Harpoon and LogicBio during the period.
Where investment gains are unrealised and are not expected to qualify for SSE, the anticipated tax due based on the current valuation of the underlying investment is reflected in a deferred tax balance.
These factors, combined with the ability to utilise certain brought forward losses, have reduced the Group's tax expense in the year to £nil (2019: £nil).
"
In the recent IC article (see 5 Feb post) they'd allowed for a £18.8m tax liability on the VelosBio disposal, which equates to 14p in the SP!
Results RNS:
https://www.investegate.co.uk/arix-bioscience-plc--arix-/eqs/annual-results-for-the-twelve-months-ended-31-december-2020/20210309070010EIVDQ/
Twelve Bio RNS:
https://www.investegate.co.uk/arix-bioscience-plc--arix-/eqs/arix-founds-new-portfolio-company-twelve-bio/20210309070104EMRNP/
Results out but no rns on lse at 9 this morning.
Nothing we didn't already know, looks like the gain on velo tax exempt.
Twelve bio investment a little field, potential conflicts of interest.
Massive discount on investments excluding cash. Its all about how they invest this cash.
Arix has come back with the market over the past 2 or 3 weeks. Personally, I was very impressed by their CEO's grasp of events over the short period he has been with the company. He presented very impressively at interview a couple of months ago and having previously decided to sell my holding, which has significantly underperformed hitherto, I've decided to hold for at least the next 6-12 months in the hope and expectation of better things to follow.
Perhaps Woodford is going to buy back Acacia's holding of Arix :)
The two new board directors seem very well qualified.
I also take comfort from the very large director buy.
Anyway, looking forward to results day.
There is still a selling trickling shares into the market in my opinion, i thought they had cleared but it seems not.Hopefully the results should get things moving and clear them out.
I suppose it may be thought that the cash won't be well invested. My main comfort (and investment rationale) is that Arix isn't doing anything very different to Syncona, which trades on a nice premium.
Still completely below the radar.
The discount must be large, excluding cash I think we getting to levels where the underlying investments are zero valued.
wonder what will get this narrowed ?
Really interesting that Acacia are mentioned as the partner to Woodford in his new fund this weekend.
Why would any institution put any money behind Woodford with his record in biotech, about the only winner he had was ARIX which they sold off cheaply. Much simpler to put your into arix at the ridiculos discount and record of achievement.
Hope arix are not involved in any way whatsoever.
That's good news, isn't it? Share price seems to think so...
It's looking less and less likely that the Acacia shares will be sold off :
https://www.proactiveinvestors.co.uk/companies/news/941301/neil-woodford-set-to-return-with-new--professionals-only--fund-941301.html
Good evening Skid. Agreed and as I have a clear idea of this being worth 250p I am going to add more when funds allow. Nice to see an ignored share that will clearly be exposed at some point.
Falling.
I think very much still under the radar, just had a bounce when the IC followers step in.
It seems to be failing down the cracks between the healthcare / biotech investment trusts are the more private equity types, with little investor interest. A little surprised as the management team have now established a good track record of investment and return.
Level of discount incredible, in the investment trust world this would assume the company has been deeply mismanaged with little hope of reverse which is clearly not the case.
The market is waking up at last. Looking for 200p once we get back over 200p . Still too cheap.
No way are they out. They have £40m, total trading value in ARIX in Dec/Jan was £6-7m/ month, so, even if they were selling, it's just a fraction of their holding.
Enough to take out Acacia or have they already sold out?
and I think there is more to come. The rise in recent days will probably lead to some profit taking after going from 168p on the ask to 192p in short order. This should test 200p in the coming weeks even after the current feeding frenzy disippates. Important to remember that Investor Chronicle will update during the year and will give the SP an adrenalin shot as well as keeping it on investor's radars.