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.
Last post: Plymouth1, 12 Jan 2021 08:19
Q4 updates are much better than expected!
Started: Mr.Flibbles, 18 Dec 2020 12:37
Last post: milnrowmug, 21 Dec 2020 09:22
CHRY now live board on LonSouE.
I presume all the data from this forum thread would move across to CHRY...
https://www.lse.co.uk/rns/MERI/results-of-extraordinary-general-meeting-ew2h73o73lwdgod.html
Started: roleybirkin, 18 Dec 2020 16:43
Last post: DireEmblem, 20 Dec 2020 22:22
Seems like folk got wind of this:
https://news.sky.com/story/transferwise-to-hire-banks-for-blockbuster-float-12167155
Lovely stuff. Provided the broader market doesn't really bomb the next few years are looking very tasty.
Dire, Meri have a good track record of steady asset value appreciation and often sit a few per cent above NAV.
I just see this as coming into line and it may well stay at this level for a while?
We shall see.
Up 9 percent cos of the 3m pound trade. Listed Private Equity (LPE) often moves with slightly out of step with public markets on a day by day basis, but not week by week.
18-Dec-20 16:35:27 174.00 1,736,039 Buy* 170.50 172.00 3m UT
Great to see....
Happy weekend.
Started: Mr.Flibbles, 15 Dec 2020 11:59
Last post: Mr.Flibbles, 15 Dec 2020 11:59
The fact sheet is really hard to read the holdings allocation. This is taken from Quarterly NAV Announcement 11 December 2020 and posted here for quick reference:
Holdings:
14.4% Klarna
14.1% THG (IPO'ed)
11.6% TransferWise
10.4% Starling Bank (t/o roomers by JPMorgan and Lloyds)
09.8% Graphcore AI (considering listing on the NASDAQ in 2022)
09.0% Embark
7.3% wefox
6.8% You & Mr Jones (really good new entry)
5.5% Featurespace
2.5% Secret Escapes (recovery play)
2.5% Sorted
0.2% Growth Street
5.7% Cash
https://www.merian.com/wp-content/uploads/2020/12/2020.12.11-announcement-nav-as-at-30-september-2020.pdf
Started: Mr.Flibbles, 10 Dec 2020 20:12
Last post: DireEmblem, 10 Dec 2020 23:20
Wish there was an edit option. Klarna not Klama.
Klama continues to make loads of money and now valued at of 10 billion, but is a holding I hope MERI will get rid off given the questionable ethics in this article...
https://www.newstatesman.com/business/finance/2020/12/klarna-millennial-empire-started-crumble-credit-score
Started: Mr.Flibbles, 6 Dec 2020 09:39
Last post: Mr.Flibbles, 6 Dec 2020 09:39
Started: gewillia, 28 Nov 2020 12:47
Last post: Mr.Flibbles, 5 Dec 2020 17:41
Officially in the digital news : The Times.co.uk - JP Morgan and Lloyds set sights on Starling
https://www.thetimes.co.uk/article/jp-morgan-and-lloyds-set-sights-on-starling-vz9gb0lfl
"The number of British banks that are considering changing ownership rose by two yesterday after JP Morgan Chase and Lloyds expressed interest in buying Starling Bank.
If the digital challenger bank was purchased, it could lead to the first big merger of an established lender with a start-up in Britain.
At the same time, TSB, the high street bank, was put on the block by Sabadell, its Spanish owner.
JP Morgan, America’s biggest bank, is understood to have talked about taking on Starling as it prepares to launch its consumer bank in the UK in the new year. Starling would give JP Morgan 1.9 million customers from day one. Lloyds, Britain’s largest retail bank, is understood to be interested in Starling’s technology.
The interest has..."
JP Morgan backed Nutmeg is linking with Staring to add some interest over JP Morgan and Lloyds...
https://www.uktech.news/news/uk-digital-bank-starling-adds-nutmeg-to-its-marketplace-to-make-investing-accessible-20201204
Plymouth1, apologies I was not precise in my language. The Earnings Report should have been released today (hence the SP movement). This report may have included NAV. This RNS has not yet been released... hence the drop in SP again. It could in theory arrive at any moment but we suspect because of Starling Bank the financially sensitive RNS are being held up.
Agree with today’s comments.
DireEmblem it would be good to have a stab at the NAV value. Mr Flibbles do you have a link to postponed update? Thanks both.
.... DireEmblem, I am interested in your NAV guestimate but wait! according to Bloomberg, AI chip designer Graphcore is reported to be close to raising a further $200m to take its valuation above $2bn. Given the incredible growth of AI including AI ETF's then this is the top one IMHO. This means pretty much everything MERI is in undervalues the company greatly on a qualitative basis. The delay in the Earnings report has added uncertainty, unnecessarily, becuase both because of the sector and our qualitative look at the underlining holdings.
Last post: Mr.Flibbles, 4 Dec 2020 08:58
Plymouth1, Thank you for sharing. Tis the season to be sharing so here is my chart and the red line is the point at which we must close above to resume the old trend or start a new trend. Today we hang above it.
https://ibb.co/Y3Ldzwp
Obviously, the chart tells you that the SP is going to be higher or lower on the trend lines, like all shares, but there are bullish indicators and they all point upwards.
Well I’ve been through all the rns since September/start this afternoon and researched other info/companies and I believe we are looking at between 40-43p rise in NAV. Also the NAV update have been a bit random looking back at the others, so it’s mid December before the next one? I’m hoping Starling has thrown a spanner in the works but in theory this shouldn’t effect the NAV at this point but commentary from mc would be good. Good luck all.
Started: Mr.Flibbles, 2 Dec 2020 09:20
Last post: Mr.Flibbles, 2 Dec 2020 09:20
By Aisling Finn on Tuesday 1 December 2020
https://www.altfi.com/article/7321_transferwise-granted-banking-licence-by-australian-regulator
Started: Plymouth1, 27 Nov 2020 21:37
Last post: Mr.Flibbles, 28 Nov 2020 09:31
Plymouth1 you have posted what has been on my mind and many others. Merian has not released it's quarterly Facsheet either to provide an indictive NAV based on M&A values and foreign exchange rates. Despite Jupiter staff not understanding my email. I also believe, it is at the calendar year-end do we get a proper revaluation of the companies in line with other Listed Private Equity (LPE).
When I posted last time I indicated that MERI was on a downtrend. The chart this week looks to break out of that downtrend.
Thanks for the info. Is NAV notifications different to end of year etc? If not the next NAV update won’t be available until 30 days from today!
If the company is not in their 'closed' period - the period either side of their revenue/profitability announcements then directors can buy and sell the company shares.
It would have to be proposed at a board meeting and be ratified, and the investor relations/compliance team would have to agree.
It a process but fairly straightforward.
Does anyone know if there is a a time period for directors not being able to purchase shares with the release of the NAV? I can’t find this on the web. Thanks in advance.
Started: Mr.Flibbles, 28 Nov 2020 09:19
Last post: Mr.Flibbles, 28 Nov 2020 09:19
On Thursday the board unveiled a proposal to change the trust’s name to Chrysalis Investments Limited following Merian’s acquisition by fellow fund group Jupiter.
https://portfolio-adviser.com/merian-chrysalis-shuns-jupiter-moniker-in-rebrand/
Started: Mr.Flibbles, 21 Nov 2020 19:54
Last post: Mr.Flibbles, 21 Nov 2020 19:54
Technical's look mixed as MERI has broken out of it's trendline on October 15th on the downside. This is at odds with the sector and the few similar funds such as AUGM or sector like European technology or software. I wounder if much of the selling is automated as a result of these technicals. Perhaps the placing of 150p is linked.
MERI is a fund and it should recover with the sector. The overdue Facsheet will contain a NAV that we need to be a positive and I don't see why not given the sector progress.
I bought some more yesterday and I hold more MERI than any other fund. I think the technical risk will be over given a favorable NAV and any other drop or sideways movement should be ignored until we get this news.
Started: Mr.Flibbles, 20 Nov 2020 21:18
Last post: Mr.Flibbles, 20 Nov 2020 21:18
Together with a large trade for MERI, the results for Starling are out.
https://www.yourmoney.com/saving-banking/starling-bank-breaks-even-and-says-itll-be-first-challenger-to-turn-profit/
Started: Mr.Flibbles, 23 Oct 2020 17:45
Last post: DireEmblem, 17 Nov 2020 23:58
Maybe I need to research more I don't know for sure. Generally in fast-growing private markets fundraising happen with great regularity and the result is a NAV ahead of the previous NAV + cash. Private equity valuations are typically only done properly every 12 months (during COVID they had been adjusted). So by the time of the placing the NAV of last year is out of date. Granted by December the amount will be reevaluated anyway, but since there is a massive growth in public companies I thought Grahpcore and Starling could be in a for a greater rise than expected.
Hi DireEmblem, In private equity and that of high growth companies fundraising is always done at a higher price than paid and the dilution effect here against the market cap (just under 2 billion) is minimal. The net effect is a rise in NAV. One example is to look at is TransferWise where the premium prices paid far exceeds that of the dilution.
DireEmblem I emailed Jupiter/MERI but they simply said factsheets are updated quarterly and did not acknowledge the lateness.
Starling/Transferwise exposure is great but Graphcore is also doing another fundraising so that will add to the NAV. I believe the NAV is like a coiled spring and we have about 20% gain for Christmas. The US markets will rise and there will be a lag for us to buy more MERI from any profits here and the US will then help NAV reports. This is the best tech trust outside the US market
https://www.bloomberg.com/news/articles/2020-11-06/u-k-s-graphcore-said-to-raise-funds-at-over-2-billion-value
Half a million sold at 133p yesterday yet they want to charge me 139p to buy. That's not a fair price. Someone large must be accumulating for less than I can buy.
I have had time to take a look. It a mix of reasons. Some profit-taking. Some because Biden is bad for the UK. Some because listed private equity is often volatile at times of uncertainty. This is all factored in.
Started: Mr.Flibbles, 9 Nov 2020 10:16
Last post: Mr.Flibbles, 9 Nov 2020 10:16
British AI chip start-up Graphcore close to adding another $200 million in funding
https://www.computing.co.uk/news/4022936/british-ai-chip-start-graphcore-close-adding-usd200-million-funding
Started: Mr.Flibbles, 6 Nov 2020 20:17
Last post: Mr.Flibbles, 6 Nov 2020 20:17
I presume MERI would be part of this...
https://techcrunch.com/2020/11/06/starling-fund-raising/
Started: Mr.Flibbles, 20 Oct 2020 14:33
Last post: roleybirkin, 25 Oct 2020 12:50
Thanks Mr.Flibbles.
I know Baillie Gifford very well indeed. Dealt for them many times.
I will have a close look at GROW.
roleybirkin, thank you for the list. In return, I will give you GROW (NAV 555p) that is backed by Baillie Gifford buying in who are not traders.
Hi Mr Fibbles,
I have two sides to my portfolio.
I really like the slow burning long term funds especially those that invest in new ideas and technology like:-
- Merian
- Pires
- Riverfort and
- KR1
All great management teams and have a history of picking winners.
The second side is the more speculative with early holdings in:-
- Novacyt
- Hemogenyx
- Bidstack
- Open Orphan and
- Alien Metals
All have excellent opportunity in exciting sectors.
All bar Bids have good strong management teams and you have to buy management excellence.
Good luck.
@roleybirkin, I am snooping around your history. Pires Investments gives me some interest. Thank you.
Great performance by a great team...
Very happy to be holding and expect the NAV to be significantly better at next valuation date.
Started: Mr.Flibbles, 16 Oct 2020 17:40
Last post: Mr.Flibbles, 16 Oct 2020 17:40
MERI's growth trend while not sustainable is still conservative amongst it's sector piers. The next quarterly NAV update will not be for some time but at the current rate everything is looking promising for more gains by the end of the year. I have added some more today at the placing price and hope the share price stays low before I can free up some funds by the end of the year.
Started: Mr.Flibbles, 8 Oct 2020 14:46
Last post: Mr.Flibbles, 8 Oct 2020 14:46
£75 million raised at £1.50. This is great news and the share price should go upwards strongly after ll is said and done.
Started: Mr.Flibbles, 15 Sep 2020 14:17
Last post: Mr.Flibbles, 15 Sep 2020 14:17
All coming in now, Klarna Holding AB follow-on investment.
https://www.lse.co.uk/rns/MERI/portfolio-update-qytkegn5umvjdqj.html
I would not be surprised if we get news from the other excellent companies in this portfolio... MERI is probably the best in Europe, I would say better potentially than HGCapital. Another similar company is GROW that is now trading under it's NAV of 555p.
Started: Mr.Flibbles, 11 Sep 2020 11:26
Last post: Mr.Flibbles, 11 Sep 2020 11:26
Merian Chrysalis Investment Company said it had agreed to commit around £23m of follow-on capital to an investment in its portfolio. The details of this transaction, it said, currently remained confidential, with a further update to be made in due course. Merian Chrysalis said the funding round saw significant participation from new investors, as well as strong support from other existing holders. The transaction had been undertaken at a valuation representing a material mark up in the company's current carrying value of the asset. It was anticipated to lead to a gross increase in the company's last reported net asset value per share of about 4.4p, which was 137.26p as of 30 June.
https://www.sharesmagazine.co.uk/news/market/7079688/Merian-Chrysali-commits-pound23m-to-portfolio-invesment
Started: Mr.Flibbles, 1 Sep 2020 18:57
Last post: Mr.Flibbles, 1 Sep 2020 18:57
26% uplift since 31 March 2020. is impressive but not unexpected given the performance of listed stocks in similar sectors.
https://www.merian.com/wp-content/uploads/2020/09/2020.09.01-mcicl-announcement-nav-as-at-30-june-2020.pdf
Started: Mr.Flibbles, 27 Aug 2020 12:12
Last post: Mr.Flibbles, 28 Aug 2020 20:19
gewillia, sadly I am ignorant of quantitative numbers and valuations. There is also a mistake with the Factsheet that claims MERI had a 14% allocation to THG. The Hut Group Limited on 20/12/2018 and October of the following year acquired a total of £29,648,000 valued at £32,762,000 makes up 9% of MERI that had a NAV of £365,873,000. I am not sure if you have enough information to calculate a NAV increase.
Numbers are not my thing... I use qualitative factors to determine the worth of a company like ambition, the usefulness and usability of the products perhaps even how "cool" a product is.
Source:
https://www.merian.com/wp-content/uploads/2020/06/merian-chrysalis-investment-company-ltd-interim-accounts-to-31-march-2020.pdf
Thanks for posting this, Mr.Flibbles. I see from 2018 that Merian started with a £9m investment, which had risen to over £29m by the latest interim results.
Do you have any idea what those funding rounds valued THG at? That would give us some idea of how much of a gain this IPO represents. The story of a £4.5 billion valuation has sure put a rocket under the SP.
British e-commerce company The Hut Group Ltd. said it plans to sell 920 million pounds ($1.2 billion) of new shares in an initial public offering, breathing life into an IPO market that has seen little activity this year.
https://ca.finance.yahoo.com/news/hut-group-planned-1-2-071518612.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAEOZ96G9nl8ZGKjhCUs5fjvEOF8y-nNrFryqMLJb3oHH4cNZ-eEwkQDSZz_ufOT-mEkbiDhQgxWcUNhkEtF_unEuNoMq_UvF8-NyXX7HPo5R-LUldJEEEtfVGnHEsGvHYpxqAf31zn4F8_lzOdkVdH-PH-ECDWjHguetQjx8rR8t
Started: Mr.Flibbles, 7 Aug 2020 11:57
Last post: Mr.Flibbles, 7 Aug 2020 11:57
Starling Bank has bucked the trend: It's back on track to turn a profit by the end of this year.
https://www.wired.co.uk/article/starling-bank-profit-coronavirus
Looks like I profit taken a little too soon!
:-(
Started: Mr.Flibbles, 5 Aug 2020 21:48
Last post: Mr.Flibbles, 5 Aug 2020 21:48
Reduced by 50%. MERI is now trading at a hefty premium to NAV now. You can get better value in a similar fund GROW where I have moved most of the funds. I will wait for the next NAV report before I think about adding back.