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today means we are even further behind our asset value. Will not go unnoticed forever.
Thank you,danrh. It is a great comfort for someone with you nowse to post here. ONP shar price is settling done still in a volatile market. IPO has a number of other rather smart investments and thye cash now to supplement them. I see this as a tuckaway and am glad for your endorsement.
Fdh- thanks for sharing. Just a note that ONT is absolutely not just a covid play, despite what you’ll read in the press. They’ll get sustained revenue from genomic surveillance of Covid as they do for other viruses (eg Ebola) but this is a small fraction of the markets they are in and going after, across clinical (medical) and non-clinical areas. Any part of our economy that using something living, is a potential market for ONT! Recommend to research a little further and then make your choice. I’ve been following for more than a decade and potential opportunity in genomics should not be underestimated. All in my opinion of of course. I’m semi-informed, as Biochemist working in Biopharma industry for 20 years….
Danrh, below from rns 15 June 2021. These shares issued @118.6p and qualified for the last dividend. Scrip divi shares from that did issue at 131.4p but only around 240k new. Most brokers offer dividend re-investment and there is the DRIP option for paper holders if IPO want investors to have the opportunity. Am happy just to know that IPO still have 10% of ONT. Am steering clear of covid related stocks now when it comes to my money. Good luck to you though.
IP Group plc (LSE: IPO) ("IP Group" or "the Group"), the developer of intellectual property-based businesses, announces that further to the announcement made on 20 May 2021 in relation to the Scrip Dividend, the Group has received valid elections from shareholders resulting in a requirement to issue 434,380 new Ordinary Shares ("New Shares").
An application has been made for the New Shares to be issued in connection with the Scrip Dividend to be admitted to the premium segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange respectively.
Admission of the New Shares is now expected to be effective on 17 June 2021, as opposed to 16 June 2021 as previously disclosed. Following admission and in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority, the Group will have 1,062,788,114 Ordinary Shares in issue, each share carrying the right to one vote. The Group does not hold any shares in Treasury.
The above figure of 1,062,788,114 Ordinary Shares may be used by shareholders in the Group as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Group under the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority.
Fastduckharry. Well played by ONT management to save that news until today (doubling of 2021 revenue guidance)! I’m slowly accumulating ONT but holding my IPO shares as clearly undervalued. They still hold 10.3% of ONT and so many other incredible companies.
Re. The scrip dividend, I received cash in June as hadn’t opted to auto reinvest. So i don’t believe it was a share issue so isn’t the case of issuing shares and then buying them back again! That’s my understanding anyway
Danrh, with regard to ONT they have come out with a revenue record busting update today, therefore growth expansion could well support the sp. Therefore my forecast was hopelessly wrong, but happy to be so. Not going to argue with you regarding NAV as my main complaint is with regard to the scrip dividend. Do you think it makes sense?
Fastduckharry even if you take worse case scenario as you suggest, based on ONT IPO price (425pps) then IP group hard NAV is about £1.52bn/143pps so compliant with buyback terms. As an approach to anchor the shareprice to the NAV I think it’s smart and good for all shareholders, no?
Hi All RNS issued today CEO , Former CEO and Non Exec Director all buying in !!
RNS Number : 8342O
IP Group PLC
12 October 2021
FOR RELEASE ON
12 October 2021
IP Group plc - PDMR share purchases
IP Group plc (LSE: IPO) ("IP Group" or "the Group" or "the Company"), the developer of intellectual property-based businesses, has been notified that on 11 October 2021, Greg Smith, Chief Executive Officer, Alan Aubrey, former CEO, and Heejae Chae, a Non-executive Director of the Company, purchased a total of 8,500, 40,829 and 16,000 Ordinary Shares of 2p each respectively as set out in the table below.
Name
Number of shares acquired
Price per share (£)
Resultant beneficial interest
Greg Smith, CEO
8,500
£1.23
364,467
Alan Aubrey, former CEO
40,829
£1.22
2,864,082
Heejae Chae, NED
16,000
£1.23
32,073
Something is afoot ! Follow the money !!
Link to RNS
https://www.londonstockexchange.com/news-article/IPO/director-pdmr-shareholding/15170667
StarKnight
I have no confidence. Why issue scrip dividend shares and then buy back a few months later at an overall loss? This is before, factoring in the recent dividend payment for the special dividend shares issued in June, the cost of administrating the Scrip dividend scheme and also the administrative costs of the share buy back. To make it clear, am waiting for news that confirms the ending of the Scrip Dividend scheme.
Would also would like to see the entry price for buy back lowered, so that purchases are only made at times when we get a genuine market correction. Using NAV as a guide is all well and good but the current Oxford Nanopore contribution to that figure is not secure. Thought the opening market price too high and would not be surprised if further falls lead to 450p a share. In other words use the float price of ONT to determine "buy back NAV". Afterall that was the price that delivered this buy back cash.
Can you explain the benefit of holding a company that loses value when an investment it makes sees huge success.?
danrh
Yes I agree I think it is a very smart move and well anticipated outflow for direct investment in ONT.This is a win win situation as the company share buyback will take place on low dips which in turn will keep us steadily rising ! Plus we still have a large holding of ONT which may be paid out as a special dividend once ONT is profitable !brilliant move !
Good Luck All
StarKnight
Well I for one think IP management team has been very effective. They clearly anticipated outflow following nanopore IPO as investors flip to direct investment in ONT, so set up share buyback to counter it and to anchor shareprice to HardNAV. Nicely done IMO. Not many ‘investment trusts’ in as strong position as IP group
looks like 120p was the bottom for now , nice
Share buy back presumably to reduce the number of shares in circulation. Which should have a positively marginal impact on the sp and future dividends payable. Approximately 680k new shares have been issued as a result of 2 scrip dividends this year. Does this make sense? I have my dividends on automatic reinvestment for little cost and at no extra cost to IP Group.
Fp- I am a believer. Have added but my average is 0.8 for long term so I’m not concerned.
dan, the price is right in the buy zone highlighted by a poster here
last week, so if you are a believer..
I've had some, but please no-one take that as a recommendation.
Harry's post was inaccurate re the CFO leaving and LSE may moderate
that if someone flags it up - I've posted to clarify the inaccuracy.
I agree @devonplay: large discounts to NAV are not uncommon, they are the "norm". So when to sell is all about personal judgement, as you're most unlikely to obtain an SP close to NAV. I was hoping for 160+ but I'm likely to offload most of my holding for 145+ now - whenever that occurs next.
Eeeerrrr, are there any declared short positions? Not that I can find. It's natural market reaction to a period of upwards followed by unexpected, and maybe concerning, news.
30% discount to NAV isn't particularly cheap or worrying, lots of PE trade at large discounts during periods of change. Given the news and stretched market sentiment it could move further down. Is that something to worry about? Not in my mind, it's in the nature of speculative investing in early stage companies. It's a bumpy ride.
Discount today on CLDN, a long established market participant that pays a div. and has a basket of unlisted holdings? 23%..discount.
It could yet go lower.
Harrycash and other shorters are circling. My advice, be careful. Fundamentals here are very strong- 35m buybacks likely to kick in, cash rich and shareprice now >30% below hardNAV. There must be weaker stocks you can find to short!
* CIO, not CFO - CFO is the new CEO.
Wizard Of Oz.
Losing both the CEO/CFO at the same time after their years if service to an IPO in house company is frankly a disaster. These two obviously planned this without anyone having an idea. Rudderless. Be hard to manage the shareprice fallout from this unless a HF or VC see's a cheap buy.
HC
Well, looks like it’s time for new CEO and exec team to I) start the share buy back and 2) get some positive news out (impact of ONT valuation to hard NAV) to stem the outflow. Interesting to watch how it will play over coming days. Let’s hope they have a plan to manage the change well!
The buy in range 121 to 127p we all know won’t last long and it’s never an exact science hence the range. For the long term based on information available it allows for an influx of new investors and existing holders to add holdings at a value level.