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Agreed.
Outstanding
I remember holding these years ago when they had interests in a company called Pressfit Holdings (some sort of marine piping business or something like that and land in place like a beach near Rio in Brazil? Haven't followed them for absolute ages but just read a few RNSs and looks like they flipped everything and went all in on Swedish ecommerce start ups? Seems like the old management have continued with their very poor investing strategy here? How are they still running a plc?
Seems like things couldn't really be much more hopeless here now. I wonder if the company will just be left lifeless as it is now for years, or whether it will ultimately end up as a cash shell. I'll be very very surprised if we ever see any interest return here or any SP lifting news from the current investments.
It's probably not worth asking, but has anyone heard anything regarding Craven House Industrial?
Ho hum!
It is a thrill a minute on this message board.
I guess everyone just hunkering down for the duration.
The only good thing is this share doesn't share the volatility shown by my other mainstream holdings of late!!
Anon.
Investment Value at 30 Nov 2021 Value at 31 May 2021
Shares in Garimon Limited $1,600,000 $1,600,000
www.magazinos.com
www.onebas.com
See he is still spouting the same.old nonsense. Complete failure as a fund manager.
Still the same unapproachable, rude and arrogant tosspot.
The most.despicable CEO I ever had the misfortune to meet.
Sorry.for those still holding. Pop.in now and again just to see if he could actually.respect his shareholders. Nothing has changed.
Excellent summary CJSpain.
Great to have you there on the day!
Thank you,
Grawostac
I see my last line of part 2 was cut by the posting limit.
MP hasn't ruled out company buy backs at CIH. But has no current plans for such action.
One of CRV's investee companies could well come good. Bio-Vitos seems the most promising, but after the meeting I have an open mind about Magazinos and TV Zinos. They are long shots, but not hopeless cases.
I should note that I have a negligible interest in CRV, currently, as I sold all my shares in 2021 to set against capital gains and later only bought back some.
CRAVEN INDUSTRIAL HOLDINGS
One of the reasons given for de-listing was that this would free up CIH from restrictive AIM regulations on corporate actions. As yet there have been no such actions. COVID is the declared reason for this, with management time dedicated to crisis management and defending existing assets.
I imagine another is lack of funds for potential acquisitions. The device of issuing shares at $10 per pop is difficult when shares are at 25 cents; so any potential acquisition would be highly dilutive or require very costly debt.
I asked why any acquiree had ever accepted the currency of CRV shares at prices well beyond current market value. MP said that the vast majority of acquirees WOULDN’T accept such shares. So deals were only done with those that would – effectively a minority amongst the distressed sellers that CRV sought out.
We touched briefly on the Angolan businesses. Qeton’s turnover has collapsed with imports to Angola falling dramatically, in line with the shutdown of Angola’s economy. The loan to the Angolan mobile company has been written down; given capital controls, CIH’s loan funds couldn’t be repatriated anyway. Any write-ups in these businesses depends on Angola’s economy and currency recovering.
IIU, medical insurance to travellers. As can be imagined, this business took an almost terminal hit from COVID. However, it slashed costs to the bone and found a new market focusing on the few categories of vital travellers who’ve gone on moving throughout COVID – diplomatic, medical staff etc. I believe MP said that they are currently modestly profitable. So this is a rare success story.
I forgot to ask about DLC holdings.
OVERALL STRATEGY
Mark Pajak’s aim, he said, is to hand on a successful investment house to his children. We can translate that as MP taking an exceptionally long-term view. This, in my opinion, is in part, a response to things not going well over the last few years. But it’s also, in part, a reflection of CRV’s explicitly declared deep value philosophy.
MP sees his role as maximising asset value. Anything that gets in the way of that is dispensable: that includes the expense of a listing or marketing the company, but also the expense of paying himself a salary or management fees.
He believes his significant holding in both CIH and CRV aligns his interests with minority shareholders. This, in my view, is only partly true: most minority shareholders would clearly beneift from liquidity. He rejected my suggestion of a listing on a more junior market – NEXT – as unnecessary cost.
The matched bargain facility works like this. MP matches the names and prices of buyers and sellers and puts them in contact with each other. Transactions are then carried out through respective brokers. Grawostac pointed out that shareholders had no way of knowing prices or whether there were any deals at all. MP didn’t see this as problematic.
He hasn’t ruled out share buy backs, but there
Thank you for your collective patience. I second Grawostac’s view that this was a productive meeting. Nothing market-sensitive was revealed, but I got a better overall sense of where these companies are headed.
CRAVEN CAPITAL
M Pajak rejected my feeling that there’s negligible value in Garimon (Magazinos) and Rosedog (TV Zinos) and that they should be written down, as onebas has been written down.
He pointed out that, contrary to my argument, there IS a demand for free back magazines and page views are growing. Likewise free television IS in demand in various developing countries where many are too poor to afford what relatively affluent Westerners see as cheap satellite/ cable packages. There is also significant use in the US. (Amongst the less well-off?)
These two businesses are currently loss-making, but the only costs are the wages of the two or three software developers at each. They have no current need to raise more cash. (But this can’t be far off?)
Potential revenue will come from add-ons, once viewers have caught the habit of going to the sites, and from advertising.
So the model is low-cost, low-risk.
Bio-Vitos (formerly YRRO ltd): the skin supplements/omega oil business is commoditised. There are multiple cheap suppliers on Amazon. So competition is principally a matter of moving up Amazon listings.
Costs here are greater, with staff working on logisitcs and on-line marketing. Still loss-making.
MP rejected my idea that there might be any premium brand value in the Norwegian omega oil connection.
Medical licences: Bio-Vitos with Inofer and Honeydog with 25% of the entity that holds the licence to Temodex. These are early stage and in the latter case, pending further research by the company that owns Temodex. So low costs here too.
CRV is a significant minority shareholder in the above companies, but have no executive role. M Pajak has no speciality in any of these areas. He is consulted, but doesn’t seek to influence decisions.
He believes current book values are acceptable. This implies that the current share price is very under-valued.
Hi,
Thank you.
CJ Spain will cover that in his coming posting I am sure. Better to have the view of an expert....
Watch this space!
Hi,
Thank you.
CJ Spain will cover that in his coming posting I am sure. Better to have the view of an expert....
Watch this space!
Thanks Grawostac. What was discussed on CIH afterwards? What are the plans for that company?
Dear All,
I am pleased to report this was held without hitch, to time and all due protocol and procedure followed.
The discussion was confined to those issues relating to Craven House Capital initially as we were advised that this was the CHC AGM and not a CIH AGM. In fairness to Mark Pajak he agreed to take questions on CIH after the AGM ended and addressed the queries we raised then for as long as we wished
My fellow attendee CJSpain is going to post here in the coming days detailing a full account of the questions raised and answers given as his testimony comes from a far more informed base and depth of financial matters than mine.
I am glad I attended and I would encourage others to fo so in future but appreciate that this might be difficult for some given the distances involved. Today CJ and I were the only shareholders present.
In truth I do not feel hopeful personally that their is immediate reason to believe there be will be any northwards movement in the share price but will retain my holding nevertheless...... CJ will provide greater and more knowledgeable insight in his posting as to the prognosis I am certain.
I just want to express my thanks to Grawostac, CJ and anyone else attending the AGM. CRV seems such a hopeless situation for me that I've given up really paying attention to the ongoings. I've no real questions to add, I just wonder whether it was incredible incompetence or malicious that has caused the value destruction here. It's taken me reading back through the RNSs just now to realise it's still less than 2 years ago that we raised $2m at $10 per share!
Obviously Covid is a factor in anything, and I'm sure it will be the excuse but the decision to move the supposedly better assets away to never be seen of again seems astonishing. We were told AIM wasn't the place for them and the new investments were more to AIM taste. The market cap is now under $1m and there has been $68 traded in total this week! It will surely again reach the point were the listing fees compared to market cap make this unsustainable to stay on AIM, but what's the point selling when my shares are 95.66% down.
I do hope despite this, those attending have a productive day and enjoy the meet up.
Dear All,
I know some of you are considering attending the AGM being held this Friday in Crawley West Sussex but have been deterred by the imprecise details furnished as to the exact location. I can now confirm that it is to be on the 3rd Floor of The Pinnacle (a Regus property of serviced offices).
My further understanding is the property a veritable rabbit warren and tracking down the exact room will be interesting but not beyond our combined ingenuity.
I wrote to Pajak on 3 occasions asking for confirmation of not only the exact address but that both Craven House and Craven Industrial Holdings could both be discussed at the meeting......I am sure no one will be surprised that he has failed to respond to me as I write. I have also written to the Nomad in light of Pajak's continuing discourteousy. My inconing email box remains untroubled yet again. I will let you all draw your own conclusions.......
Incidentally, The Pinnacle opposite Crawley railway station where there is ample parking for those fearful of risking relying on Southern Rail at such an hour. Do not park in The Pinnacle itself as strict clamping rules apply to non permit holders.
Looking forward to seeing those attending and for those not able to make the journey I will detail the events of the meeting here over the weekend.
Anon.
Grawostac
Great valuation for a CRV that owns 30% of ONEBas.com Music ( Garimon Ltd ) a direct SPOTIFY competitor, valued today at £ 720.000. Att ONEBas.com Music, you will be able to buy all albums for $ 1. By that, the artist will first release its album exclusively on ONEBas.com Music and after 3 to 6 months the album will be able on SPOTIFY and other streaming services. Same you can see in the film business, a movie is first released on cinemas, then after 3 to 6 months the movie is able on streaming services
www.onebas.com
Thank you.
I have emailed you from my AOL account 5 minutes ago.
Anon.
Hi Grawostac,
I'm currently confined to my man cave upstairs in the attic where I plan my investment coups, having tested positive for COVID about 2 hours ago. My significant others are downstairs doubtless whooping it up now the boss cat is out of the way.
I look forward to meeting up.
Till later.
My e-mail is chrismoreland2@yahoo.co.uk.
Hi CJohn,
Good to see your posting......
Great that you plan to attend and seek out the Pimpernal too.
I don't subscribe to the board you cite I'm afraid so an email contact address would be much appreciated so we can liaise before 'riding mounted and primed into town'
I trust your Christmas pleasurable meanwhile.
Kind regards,
Grawostac
As I'm going to attend the AGM on the 21st, along with Grawostac, are there any questions anybody would like me to put to the directors?