The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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.
I don't know if anybody reads this but there you go.
http://mxccapital.com/wp-content/uploads/2021/06/174973-Project-Press-II-Tender-Offer-Document-AS-PRINTED.pdf
I fancy the best pickings will come later. But having gone for it quite big at just over 50p to add to the rest rather than take a loss it's working out OK - though it's been pretty dead money, especially when you're in the dark. I suspect I shall take at least some of it, bird in the hand so to speak.
minimal interest
Whatever other influences were in play, It seems to me that the absolutely minimal disinterest in the shares illustrates a deep distrust of the management, rather than the business model. I assess that buying at current price would have meant paying no more than 15p for the various businesses, with the rest consisting of cash or predominantly secured loan notes.
Nobody much wanted the shares at 50p, let alone where the ask has been pitched today.
No mad rush to buy in today with a nearly 50% discount to nav
The trades make for gloomy reading, but I start from the position that each share after privatisation is 'worth' about £1, albeit that cannot be easily realised, and when it can, only in pieces. And NAV will change over the years with management decisions, business progress and sums achieved on exits.
There have been no holdings notifications from the very few non concert party major holders. It is plain that small private investors in general do not want the shares. They are gradually being winkled out ( I think, as planned ) But there is somebody content to buy at my estimate of half NAV., but is not paying more. Whilst that continues, there is a market - but mm's will have an eye to the last day of trading on Friday 13th.
Can't help feeling that this has all been engineered, being delisted means no regulation although on AIM can you take that with a pinch of salts
You're a sitting duck before and after I'm afraid, next week even more so
Ah well that's me committed to the end.
Even thought of buying more.
What are the disadvantages/advantages of this position, I've always just been a sitting duck on this one anyway holding and going with the flow....
Good luck to all the exiteers.....
The actual and potential disadvantages to minority shareholders in a private company are well documented. Having said that, it looks as though the market cap is one third cash, and it is trading at half probable NAV. of about £1. That would normally be viewed as an opportunity. There is a flexible up to 5 years to run on the investments at management's discretion and according to circumstances. Ravenscroft and the GIF will have a hand in some of that, as will Liberty Global. There is time to top and tail. A number of cumulative % pa over the £1 would 'pay dividends' over time - and there is probability of premium on exits. But, on this or any other chance, there is the possibility of many a slip between cup and lip.
Resolution passed as expected, could be a buying opportunity at this price but safer bets elsewhere imo
On 17th February Investors Chronicle (there being no option of tendering shares back to the company at a price nearer NAV ) advised smaller shareholders to sell at what Simon Thompson said was an artificially depressed price, or take the Hobson's choice of holding shares in an unlisted company for 5 years. The company proposes pricing shares at NAV for scheduled returns. Thompson gave his estimate spot NAV as £1.03. If he was correct, then today, with Ide's rather strange ( I think ) downwards movement on what is MXCP's last day of H1, it now stands at £1.
A mite late with that holdings RNS in my view, with Smith just having to inform himself. One would expect it the same day or the next. There was not much reason for him to buy a few shares from the cash he took from the tender offer, but looking only at insider deals listed on this site, it appears it might have been in the interests of one or two of the others to average down on their last purchases.
It is in my judgment a question of operation in a less-regulated environment, substantially locked in, with little information, balanced against returns at net asset value as investments reach maturity and are sold off, hopefully at a further premium to current book value. On that basis alone, the shares are currently trading at about half the minimum sale value and return over the period. Although far from ideal for some, others may view it as an opportunity, particularly at this price.
Small share holder here but of long standing.
I think this makes sense I could never understand the discounting myself just not in fashion I suppose.
This makes the game exciting again. Now discount is bigger than ever might even buy more.
Good luck guys ....
Apologies. I now see your earlier post and you have already sold.
I post as I see it. Others may do so. Perhaps you will decide to sell and have done with it.
"This was always likely to be a finite investment"
You having a laugh?! You've run a one man bulletin board on this share for the past couple of years piping off the directors and the long term prospects for this company! So much so that I was wondering if you were actually one of them or at least worked for the company!
No panic selling here. Just a fatigued investor of 6 years who's seen nothing but share price decline and no return. I simply don't have another 5 years of tolerance in me just to end up breaking even whilst watching the hapless directors drift off nicely into retirement with my investment.
This was always likely to be a finite investment - it would cease on Smith and Wheeler retirement, whereupon they and the concert party extract their original cash and profit. The same will apply to the rest of us. It is anticipated investments held in about 5 years time will be at the top for them, or become so during the next 5 years. This is a way out for them. There is more to it, but generally investors will see returns based on NAV over time, and cash at the end. Also a matching facility. Return should be far greater than now - we are well below NAV. I regard this as a nuisance - but in my view panic selling based on this substantial change is not the answer. Indeed, there appears to be money to be made ( certainly from here )if one is prepared to hold and go through the motions, as management will have to - as I indicated before, NAV is substantially higher. The business itself is the same today as yesterday. This comes as a surprise, but I shall work with it with a view to ultimate profit, as the concert party are doing.
Yes Vulcan, good luck with that
Welcome to aim and cr*p managers , who are only in it for themselves, they say it's in the best interest of the shareholders !!, no doubt they don't have shares any or have sold months ago, and will probably wangle themselves some kind of bonus once delisted.
Unfortunately you only have two options 1 Sell up and take the hit or 2 Vote against the delisting and hope many others do the same, but even then there is no guarantee.
Good luck with that Vulcan ...
The share price has been below NPV for several years because MXC lost credibility over the insider trading and accounting manipulation at Redcentric: https://www.sharesoc.org/blog/red-faces-at-redcentric/
Coupled with no actual return to investors in terms of dividend or value and it makes this share just another tragic AIM clusterf*ck run by incompetent directors who don't care about shareholders. I've sadly been invested here since before the Redcentric scandal and sold this morning for a 65% loss!!
Read section 2 of the RNS ... the company is being wound up within 5 years.
"The Investment Return will continue until the Company ultimately exits all of its investments, at which point the cash remaining in the Company will be returned to Shareholders and the Company wound up. The Directors currently anticipate this will occur within the next five years."
You will own shares in an unlisted company. You get nothing.
So the NAV was 117p so if the firm cancels from AIM I would assume we would get this per share (plus/minus any changes since the Final Results).........
I would assume the NAV includes the circa£70M in cash on the balance sheet as well......
An observation only. MXCP has dropped back to approaching the price at share consolidation in February 2019. In May 2019, the company reported a NAV of 97p per share at 28th. February. Ide then stood at 1.55p, and Adept4 at 0.9p. If matters are proceeding as planned as investors here will have banked on, then reported NAV should not prove to be less at half year end this month. Investors Chronicle previously optimistically suggested a premium to NAV. Pending update here I sense that investors may be watching the fall of the two listed companies from their inflated high prices, rather than considering the business progress being made over the year within Ide and potentially whatever Cloudcoco may eventually show by combining it's reselling business with Adept4. Great effort is going into Íde, and something had to be done with Adept4, so it was. But the eventual aim is to secure exit from both companies, to concentrate on the substantial existing and future private investments and fee-paying relationships. I cannot know, but postulate that MXCP may be trading at a discount of around 30% to NAV., but the true position will only come with results.