George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. 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.
Why the huge disparity between the share price and NAV
Share Price
52.70p
NAV
128.26p
as of 27/03/2023
Contagion from the SVB debacle is dropping the share price.
Be nice to get an RNS telling us if they're any direct links.
8/ MessageBird: MessageBird is a Netherlands-based cloud communications platform that uses AI to provide personalized messaging services for businesses. Its products include chatbots and voice assistants.
9/ Cazoo: Cazoo is a UK-based online used car marketplace that uses AI and machine learning to provide a personalized car buying experience for customers. Its platform uses data analysis to match customers with the right vehicles and provide financing options.
10/ Arrival: Arrival is a UK-based company that develops electric vehicles (EVs) and uses AI and machine learning to optimize their design and manufacturing processes. Its products include buses, vans, and trucks.
A few small holdings of CHRY is focused on the development of AI, but the nugget and arguably the more interesting is that very few of its holdings aren't embracing the *APPLICATION* of AI. This in my mind is the more profitable play to make on AI. If you can make smarter decisions faster and reduce the amount of admin by say 10% or 20% then that drops straight through to bottom line. People see "disruptive fintech" as being "digital" and/or "online" but to my mind it's the automation and digitisation of back office and front office processes which is the true value of digital.
And that's why I'm happy to pick up more CHRY at half its NAV value, because I'm convinced among these companies are future winners and also future candidates for buy outs. Either way the long term price won't be sixty something pence.
3/ Smart Pension 12% of portfolio:
3a/ Personalized Pension Plans: Smart Pension uses ML algorithms to analyze employee data, such as age, income, and retirement goals, to create personalized pension plans that meet their specific needs.
3b/ Automated Pension Administration: Smart Pension uses AI-powered chatbots to provide 24/7 support to employers and employees for pension administration tasks, such as onboarding and contribution management.
3c/ Investment Management: Smart Pension uses AI and ML algorithms to manage pension investments and maximize returns while minimizing risk. The platform analyzes market data and adjusts investment portfolios to reflect changes in market conditions.
3d/ Fraud Detection: Smart Pension uses AI and ML algorithms to detect and prevent pension fraud. The platform's system analyzes customer data to identify suspicious activity and alert the company's fraud team.
3e/ Compliance Management: Smart Pension uses ML algorithms to automate compliance management and ensure that pension plans comply with legal and regulatory requirements.
4/ Luminance: An AI-powered platform that helps lawyers and other professionals to review and analyze large volumes of legal documents.
5/ Graphcore 4% of portfolio: A semiconductor company that designs processors for artificial intelligence (AI) and machine learning (ML) applications.
6/ Deep Instinct:
6a/ Threat Detection: Deep Instinct uses deep learning algorithms to detect and prevent cyber threats. The platform's system analyzes large amounts of data, including network traffic, file behavior, and system logs, to identify and block malicious activity in real-time.
6b/ Behavioral Analysis: Deep Instinct uses deep learning algorithms to analyze the behavior of files and applications to identify anomalies and potential threats. The platform can detect zero-day attacks and other advanced threats that traditional cybersecurity solutions may miss.
6c/ Malware Classification: Deep Instinct uses deep learning algorithms to classify and categorize different types of malware. The platform can accurately identify known and unknown malware, including fileless attacks, ransomware, and other types of malware.
6d/ Threat Hunting: Deep Instinct uses AI and machine learning to assist with threat hunting and investigation. The platform provides threat intelligence and analysis tools that help cybersecurity teams identify and respond to threats more quickly and effectively.
6e/ Automated Remediation: Deep Instinct uses AI and machine learning to automate remediation processes and respond to threats in real-time. The platform's system can isolate infected devices, block malicious activity, and repair systems automatically.
7/ Lidar: Luminar Technologies is a US-based company that develops lidar (light detection and ranging) technology for autonomous vehicles. Lidar is a key technology for self-driving cars as it allows them to "see" and navigate the environment.
Ironic then that Chrysalis is being overlooked yet holds lots of stock directly and indirectly engaged in AI:
1/ 12% of portfolio: Starling Bank, a digital bank in the UK, uses artificial intelligence (AI) and machine learning (ML) to improve its banking services for customers:
1a/Fraud Detection: Starling Bank uses AI and ML algorithms to detect and prevent fraud. The bank's system analyzes customer transactions and behaviors to identify suspicious activity and alert the bank's fraud team.
1b/ Customer Service: Starling Bank uses AI-powered chatbots to provide customers with 24/7 support. The chatbots use natural language processing (NLP) to understand customer queries and provide personalized responses.
1c/ Credit Decisions: Starling Bank uses ML algorithms to analyze customer data, such as transaction history and credit score, to make more informed lending decisions.
1d/ Spending Insights: Starling Bank uses ML algorithms to provide customers with personalized spending insights. The bank's system analyzes customer transactions to identify spending patterns and trends and provides insights and recommendations to help customers manage their finances.
1e/ Savings Goals: Starling Bank uses ML algorithms to help customers reach their savings goals. The bank's system analyzes customer spending patterns to identify areas where customers could save money and provides personalized savings goals and recommendations.
17% of portfolio: WeFox is a digital insurance platform that uses artificial intelligence (AI) and machine learning (ML) to enhance the customer experience and improve risk management. Here are some examples of how WeFox is using AI and ML:
2a/ Risk Assessment: WeFox uses ML algorithms to analyze customer data, such as claims history and demographic information, to identify potential risks and determine the appropriate insurance coverage and premiums.
2b/ Claims Processing: WeFox uses AI-powered chatbots to provide customers with 24/7 support for filing claims. The chatbots use NLP to understand customer queries and provide personalized responses.
2c/ Customer Service: WeFox uses ML algorithms to analyze customer data, such as interactions with the platform and feedback, to personalize customer service and provide a better overall experience.
2d/ Fraud Detection: WeFox uses AI and ML algorithms to detect and prevent fraud. The platform's system analyzes customer data to identify suspicious activity and alert the company's fraud team.
2e/ WeFox uses ML algorithms to automate the underwriting process, which allows the platform to provide faster and more accurate insurance quotes.
CONT'D.....
Bit overdone, asset value down but should recover once we get through this dodgy patch…
Inadvertently, CHRY have provided the NAV as at 30/01/23. If you look at the announcement of NAV 128.26p for 31st December and notice the NAV valuation at the bottom of the RNS drops by £9m. So NAV drops from £763.3m to £754.3m.
This translates to a NAV per share of 126.74p for 30/1/23.
The portfolio updates look impressive for Starling, WeFox, BrandTech and even Klarna. The penetration of BNPL into the USA is extremely low so a rise of 92% is actually only the beginning of US market growth which has a long runway of I think 5 years to catch up on Australia and Europe levels of BNPL penetration. It's true that a more cautious approach to underwriting is required, and BNPL legislation will introduce red tape, however it also improves Klarna's moat against other new entrants and my own esoteric experience is that I see Klarna far more often on ecommerce sites than I see Afterpay (Block) or even Paypal.
So the discount to NAV is eroding from silly levels through a combo of share price reversion but also kitchen sinking any bad news. The mark to market approach and FX have reduced NAV but both of these factors will reverse (in my opinion) during 2023. GBP/USD will almost certainly weaken (on the Big Mac Index the economist reckons sterling is 30-35% overvalued) and Jupiter sackcloth approach to valuation leaves room for uplift once the IPO market opens.... we are now 5 quarters into what is usually a 6-7 quarter drought spell so late 2023 an IPO of Starling, Klarna or WeFox are all possible.
GLA
It is still climbing. Last NAV of 148p was prepared using 17th Nov prices so Wise has changed from 595 to 543 current. Wise only accounts for 2% of total value. I would like to think any scrutiny will make us more informed about the future value of CHRY but it sometimes defies logic. Next NAV in 4 weeks!
The trouble with that gewillia is that the price of Wise on 30 Sept last was 660.6 and on 31 Dec had fallen to 562.8 and now is about 533 so that's not going to help us come next review announcement. Hopefully Starling might give us a lift with a potential floatation.
. . . and 40 days later, Rofert, it has gone from 79p to 91p, which is a less than 40% discount to the 30/09/22 NAV, and suggests that the market believes this one is beginning to recover nicely. Wise and Starling are now supposed to be printing money with the rise in interest rates.
I wonder if the 31st December results will really turn the tide?
Times reports today that Wise is beginning to make significant profits from its customer balances after recent rise in interest rates.
Let's give credit to CHRY. In the space of a week have gone from 63p to 79p.
Clearly the former outrageous performance fee structure and heavily overweight holding in Klarna has held the share price back. With this now recognised and with proposed changes things should now get better and the discount to NAV close. Obviously all in my opinion so do your own research
Is the market finally waking up to the massive value on offer here?
Still below the covid low of c76p!
Fingers crossed.
That's better:)
Seems positive to ne but sadly market not impressed?
Two RNS's in one day. The rearrangement of Jupiter's fees is very welcome. Also, an RNS providing better communication with shareholders about future value. Both should help to unlock the ridiculous NAV gap.
Jupiter have a lot to answer for. Chrysalis need to show that they are properly run for the benefit of investors.
I'm a new investor here 3 months only and so am slightly up at present, hoping for much more in due course. Am I right in saying that Chrysalis paid £45 million for their Revolution shares at AIM flotation last July? Shocking destruction of wealth by Jupiter.
Rofert your comment takes no account of the fact that this is trading at a huge discount to NAV regardless of Revb - there is plenty of upwards movement to come before the share price reflects the underlying value of the holdings
So they received £5m for an asset they valued at £0 just 4 days ago. Great result.
But in the preceding 24 hours the price moved from 60p to 70p which smells.
I don't think the Board have good governance in place.
Thank HH, that was the point I was making, I’m not sure how or why the other poster here could construe it as a comparison - bizarre.
Trading in Revolution Beauty shares were suspend on 1st September, the CEO and Chair step down on 9th November. Nothing similar had happened at Wise, in fact the sp is recovering nicely. There is absolutely no comparison.
Another listed holding gone. I wonder when Wise will be disposed of.
Probably insider knowledge. Historically, too many share price moves ahead of announcements. Board not transparent about activities.