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The question is when do the BoD think is appropriate to sell some shares in CDT? They have had the opportunity over $5 to sell some by declined. More recently they could have sold some over $3.5 so when is the right time? Apparently selling other investments at heavy losses makes better sense (and it may turn out to be true if CDT goes toward $10).
Will they wait till they have no other investments to sell off and then start selling CDT whatever price it may be?!
You’ve taken my “ever positive” spot on the board, good for you ( seriously). I’m hoping my positivity returns. The sun is out and I’m spend8ng s9mewhere on Monday, not sure where yet!
“ Yeah that's definitely a concern, if hypothetically CDT suddenly bounced to $10 and they sold the lot for a $10million+ windfall would anyone trust them to reinvest it sensibly? On past performance I don't think anyone would. ”
If that section materialised it would of course prove they could make a massive return on an investment by being a) patient and b) negotiating a very good deal with the put option .
Dead ducks would soon be forgotten and many of our larger investments still have huge potential when the market turns
4) wind down in an orderly manner and distribute CDT windfall and £ from liquidating other investments to SHs.
1) new strategy
2) full enterprise sale at true value
3) massive external investment
One of these needed soon, plus a massive CDT bounce and calculated sale/placing of those shares needed.
Retiring at age 100 otherwise.
Yeah that's definitely a concern, if hypothetically CDT suddenly bounced to $10 and they sold the lot for a $10million+ windfall would anyone trust them to reinvest it sensibly? On past performance I don't think anyone would.
That thing in the Feb quarterly RNS about the potential £15mil injection from the third party did mention them “amending the Company's investing policy so as to concentrate on the life sciences sector” which is the first time they’ve mentioned potentially changing their MO (although I vaguely recall something about Laiker wanting to change the investment strategy a while back but it was just in passing). Problem is, since when was that their speciality? One lucky hit on the initial SGSC investment does not an expert in life sciences investment make…
@BouncersDream, I would agree with your sentiment that "AIM / small cap market being a bad place to hold long term". However that is the Vela Business Model and they have stated they will continue with that strategy. So even if CDT pumps a little and there is a cash out, then what next? What would be the point of just re-investing back into AIM/Aquis?
What we need is Jimmy with a bonkers uber-ramp to get things moving. Perhaps with a new rumour that's he's got off someone in the pub, .1 by the end of next week etc etc
Its about right though. PIs now bored and see no hope of the SP increasing so selling up to chase rainbows elsewhere. There are no buys coming in so the SP can only go one way. As much as the fundamentals looking ridiculous to the SP, the BoD have successfully drained any sentiment from the share.
Even our resident chartist didn't foresee this drop, although i am sure they will be back at some stage.
In most cases this would be a clear buy but anyone doing an ounce of research will uncover the sorry state of affairs - all hopes on one investment, selling other shares to keep the lights on, almost every investment made is underwater some so heavily they are written off.
Same boat as you BouncersDream - I seem to suck at the investments I have chosen - 80 to 90% down. There are some that you would have thought "safe", like Joules......
Yeah it's all a bit miserable watching it continue to drop. The Vela Experience. Not even crazy Joe can be bothered to come back to rant on here under a new pseudonym - perhaps it's him that's been selling 20mill chunks every couple of days.
Just as a little experiment have a think back over any small cap you might have invested in over the last 3 or 4 years and that you then sold. I've just done the same and almost without exception they're 80 or 90% down on where they were a couple of years back. I'm certainly not making excuses for the board here but either this means that I pick terrible investments (entirely possible), or else it's a case of the AIM / small cap market being a bad place to hold long term or maybe it's just going through a bad period post-covid and with the macro situation so poor. Anyway, back to work I'm not making any money here that's for sure.
0.011 to sell now 0.01p has an inevitability now, despite most investments being considerably up on year lows ( although of course mostly considerably down on initial buy ins)
Ironically our biggest investment, now held in CDT shares, is about even and worth way more than the mcap at this price .
Tempted to add more at 0.0125
I’m afraid my usual ( highly questionable) positivity is expiring rapidly. Aaaagh!
Truespine having a little bounce
I’ll have a rummage down the back of the sofa to see if I can find enough to buy this lot out.
Yep Mcap now £1.982m
Value of investments - circa £5.4m (although this will not be 100% accurate as they will have sold some investments since last update to pay for wages/costs)
And so we hit an all time low. Is there anyone here who can spin that? I just see my investment disappearing into the ether and no amount of averaging down is going to help.
Nice to see a few half decent buys today, though not reflected in the sp . Certainly more volume than usual, couple more of the mysterious 666 (10p) transactions too.
God time to buy. MWE.CSFS etc all way up on year lows, even if below initial investment levels. CDT investment also in profit over original investment.
Aside of course from almost get a £15m investment and getting a very good deal on the CDT purchase. The former sadly did not come off, the latter did and could ( could) still be transformative. It is a symptom of our collective disappointment that we focus on the directors pay and the chairman’s fees. Suspect no one bats an eyelid at the ( many times higher) salaries and fees at all other investment businesses. Hardly a serious concern. The cash position, constant frittering away of decent investments, the failure of the £15m deal, the lull in the CDT price ARE serious concerns.
Like others, next Monday I have a dilemma about averaging down or staying away. Jury’s out…..
I think it would be prudent if CDT spikes at some point to cash in the marketcap of vela! At least that would slow the rot.
Yeah they will be selling off from the existing portfolio to pay their wages. Not sure how anyone could say they are low (I know not you big dave) wages for what they actually do? We haven't invested in a company for nearly a year and they are just selling shares for losses to cover their wages. Add to that they spent £50k on effectively nothing!
It wasn't a £50k raise. Shares were issued to pay off a debt. No funds went to Vela. Which means they must be still selling down from the portfolio to pay their (low) Director fees.
Yeah I think around .013 was all time low previously, been bouncing off that for a few weeks but seems to have punctured it now. Makes it difficult to decide whether it's worth averaging down again, knowing as we do that this is actually undervalued (unlike most shares where people say it's undervalued, this genuinely is) or whether the sentiment is just so rotten that it'll struggle to ever properly recover in which case it's just good money after bad. As far as we know it's just a wait now for CDT to hopefully rise and the BoD to take the decision to cash some of them in. I don't think they've got the luxury of waiting until it's $10+, we know there's nothing in the coffers after they did that £50k raise tuther day
Down to 0.0125, must be near to all time lows now. even though we are in a better position (on paper) than we have been for a long time. Sentiment also at all time low.