The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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I know very little about the IoM. It seems a self contained area. The Tesco store is the only place on the island that does home deliveries though you have to book three weeks ahead. Roadworks on the prom will take over a year to complete. It seems to be a place that will continue in much the same way as it always has. MFX is not large enough to be taken over and too small to take over anything meaningful.
PIs have bought in on the assumption that Jim Mellon will make them a fortune. Unfortunately banking is not biotech; it is a capital intensive business that is all about the cost of capital - the cost for Conister is never going to be as low as larger banks.
In addition the regulators in the UK and IoM can't be overly impressed with the owners of the business - just look at how it took over a year for them to get regulatory approval for the acquisition of Blue Star Business Solutions.
Dead money.
Were there particular reasons why PIs invested in this?
And can this be grown to 3 - 4 times the size with Newbury being a starting point?
Jim Mellon and Aaron Banks both saw an opportunity to use an offshore bank, back in the days when offshore activity was less regulated and there was far less information sharing with other tax authorities. Now that all information on UK account holders goes to HMRC there is far less scope to use it for asset planning purposes.
There are now no advantages for UK tax payers in using offshore banking, and Conister is basically a small local bank serving the local community. Being sub-scale the cost base is too high for it to consistently make high margins. The company needs to be 3-4 times its current size to be optimal scale.
The 2 x 500 buys were mine. I will let them ride fore a little while and see how things go before deciding to invest further.
Hi H4mmered.
I would agree that it is sub scale but IoM, due to its legal status, may make it attractive to some though no doubt any gaping holes have been plugged.
I don't see this as another RBS or Barclays - what does Jim Mellon, Aaron Banks and others see in the business. They must have seen something in it?
It's a sub-scale, poorly run bank and related early stage punts alongside; controlled by Jim Mellon, although he had to bring in a biotech mate to provide some capital a year or two ago. They have 30% between them and are a concert party, so therefore cannot buy any more stock. Then there's Aaron Banks who has 30% and given his travails over the past year is thought to be a seller. Jim Mellon has warned off anyone from trying to buy the holding and bidding in an RNS. It's going nowhere, trades at a discount to book for a reason, difficult to see the longer term attraction.
I'm looking to diversify into lower risk shares, the joys of old age approaching :-).
I came across this share by accident and liked some of the numbers and businesses. I was a little bit concerned about the sentiment on here. Any opinions would be welcome.
It wasnt one of them...should have been...I suspect accounts will be late again although i believe the results will be good.
I gave Denham Eke 10 suggestions to improve shareholder value... i have reminded him he owes me a reply... i will do what i can to get traction on this with the Board.
It wasnt one of them...should have been...I suspect accounts will be late again although i believe the results will be good.
I gave Denham Eke 10 suggestions to improve shareholder value... i have reminded him he owes me a reply... i will do what i can to get traction on this with the Board.
I forgot to ask. Was one of your suggestions that they actually inform their shareholders of the date when they are going to report. Only happens twice a year and most companies seem to manage it. They did at one time but they missed the date so often they don't bother now. Kind of fits with their actual attitude to shareholders.
Sitting here waiting......
M1... understand.
Tbf the MD did call me back, long call. Lets see if any response to my recommendations. If not satisfactory I will be writing to the entire Board and/or other major shareholders.
I applaud your action in taking contact with the company. The proof as allows will be in their execution. They have paid lip service to shareholder value for close to 8 years. Each company report (though usually financially better) is alwys full of good intentions. We will get back to you on this or that, hope to be self sufficient in capital, believe in a dividend policy, capital raising without dilution, takeover ideas mentioned in every report but amount to just a couple in all these years. Well paid independent board members who are worse than useless in doing what you have tried to do in this contact.
Ok... if anyone is out there... i have spoken to management. They are aware of need to improve the position for investors....lets see. Followed up with some strong recommendations on investor relations. If things don't improve with results (no reason they shouldn't be good given recent growth) then I will be meeting management in H2.
If necessary!
We have a decent business here... but needs to be much PR energy.
SP based on assets, growth should be much much higher.
I will be asking for a meeting if not significant improvement.
Will update once more info.
Could you please write a letter once a month from now on please!! Seems like they like to reply after a raise in the share price.
Have written to Eke (md) questioning PR and strategy to improve sh returns, has promised a reply... next few days.
It's sub scale and has shareholders that would make any regulator nervous. It needs new shareholders, more capital and a refresh of the management. Otherwise its great.
Held this share for many years now and disappointed with current price.
Still looks a decent business but clearly not loved by the masses.
Anyone else following this and anyone with any good news to post?