Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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...is my response to the Annual Report.
Not too well disguised apprehension and trumpet blowing where at all possible, no doubt glossing over the bits they didn't want us to see.?
This is disappointing and makes me wonder whether the time has come to bow out and let the cash mount up?
Did they let you know that Sense had been sold back in February barchid? I can’t find an RNS on that one. Maybe they only release good news ; -)
I’d like to send Scharnhorst in to stir things up a little, but he has retired to the Gironde. Ran out of German ammunition apparently.
Positive updates from Canaccord and Singer as usual. It would be nice if they could lift the share price for a change.
Alfredo
I suspect that you are spot on, clearly Koch appear better at this game than Mercia are.
There were potential massive rewards with Sense Biodetection barchid and I wouldn’t disagree with the purchase at a venture capital level, but the risk/reward profile was all wrong for a direct investment in the portfolio. They’re supposed to sift out the best investments before going in with the portfolio and that 1% stake was out of character, especially as they were getting into bed with Koch Industries who gave MERC a good shafting. Koch’s stake controlled the fate of the company and I bet they came out of the debacle with the tech at peanuts for them. Another example of US investors pulling limeys’ pants down.
My opinion is that MERC were using portfolio money to try to prop up a VC dud.
Scharnhorst
As an eis holder in Sense bio I totally agree with you, they certainly suckered me (some years pre covid) & looks like they suckered themselves during covid.
Divi less than generous too...
Treading water really. Perhaps not a bad outcome in this environment. Divi rise looks good but doesn't beat inflation and there are much better divis out there. They have a lot of money doing nothing in short term accounts except lose value year on year. That failed investment in Sense Biodetection shows they fell for a covid sucker stock which is worrying. It seemed unusual at the time as they only took a 1% stake due to the inflated price. That is far from their usual modus operandi which is double figure percentage in micro companies with growth potential eg. over 40% in Warwick Accoustics. Julian Viggars has some explaining to do.
Liquidity, plenty of cash and:
"Proposed final dividend increase of 6.0%"
Old
I fear you are correct, they definitely had a focus on gaming, which must make us wonder how astute their stock selection really is ?
My belief is that they are heavily (c33%) into online games companies and they have not generally been having a good market lately/ Still a holder for now pending figures.
All those with questions can ask them online if they register as per today's RNS.
There is 100% no way GAW are buying other companies. Have a read of their annual reports and statements. They are laser focused on their own products.
Https://www.lse.co.uk/rns/GAW/year-end-trading-update-nfkwjcw7nf1tp85.html
An impressive company making serious money. The kind of company that could buy up a smaller tech/games business with its lose change? Not impossible but hard to put a probability on them wanting something MERC has a stake in without having done the research or being a sector insider. Anyone have a view?
Agreed, on a sum of the parts basis they are very cheap, hold and hope is also my strategy...
The not so young....surrounded by an extended family of young who game.
MERC only has to have invested in one winner in the Games Space to deliver big profits. That said it is a gamble and a wait and see kind of investment. I am happy to do so at this share price.
Formerly
And indeed the not so young...
However I think we need a few more successes under the belt before we start hoping that MERC could become this century's remodelling of The Great Gatsby...
Https://on.ft.com/43AJlrv
"Arabia has spent almost $8bn acquiring and building stakes in gaming companies across the globe in the past 18 months as part of a turbocharged investment spree with the aim of becoming a dominant force in the growing entertainment industry."
During the depression years of the 1930s Hollywood thrived because people went to the cinema to escape.
The UK is already in a recession albeit the economic definition says not and maybe gaming will be the great distraction for the young?
...to full yer results. They haven't budged much in a bad market so I should be relieved. Can't expect too much but a boost in divi might be nice.
....to the results which should tell us -or those who know 'resultspeak'
-precisely why this cos shares are changing hands for around half their asset value at best.
We all know already that they specialise in newish companies, many in science field but their record is sound and their fair discount to NAV should not really be less than 20-30%. Perhaps a more generous dividend might help a bit!
absurdly cheap
bought a handful (28k) more
hold 450k
Oldbut
I know the feeling well but Singers put out a bullish write up on them post this announcement, where there's life there's hope...
Long term you're right, barchild, but it's tough holding long as you get older and see the in-an-outers making fast money. But remember, they too get it wrong. We just don't hear about their mistakes!
I think you are right, sadly I'm long & wrong !
I added a handful