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Looks like big news from the Woodford equity fund that has been closed - shutting up shop entirely. So what will be the new name for us in WPCT. That W is going for sure, and maybe we could adjust the Patient to Peeved? Trust to ?
The share price should have gone up knowing Woodford may be going. Whatever happens though - Woodford will never be crying into his beer -- he will remain a multi-millionaire with his Oxfordshire pile still intact -- there is no risk/reward for these people..
he may well have to go in hiding, people do not like losing money to a crook, that's what's transpiring with worthless stocks.
If there's anything left here it will be the banks and they cannot be impressed with the WPCT BOD's to manage any further.
@mrcautious "The share price should have gone up knowing Woodford may be going"
Why? A pile of poo is still a pile of poo even after the person who bought the pile of poo has run off.
Is there a lot of cross holdings with the fund so people think the NAV will be suppressed by forced selling?
Secretly we all hoped that Woodford would walk away ... so relief at last that "The Board is in advanced discussions in relation to the ongoing management of the Company's portfolio and expects to be in a position to announce details of the new management arrangements shortly."
There may be kitchen sinking but some write downs have already been taken and I have (qualified) faith in the independent valuation process applied (the valuers have had plenty of notice that a crunch is coming.....)
@bestintown "I have (qualified) faith in the independent valuation process "
If IH is still valued at **anything at all**, then you should have zero faith in all other valuations. If i told you the painting by numbers my 9 year old did was actually a Rembrandt, would you believe me when i said I also had a genuine Picasso?
IT, certainly I don't have inside knowledge of the valuations but do have a belief in the integrity of independent valuers. Of course, they must align to market valuation as determined by fund raising rounds and quoted prices which themselves are subjective. But that is the nature of financial markets.
@bestintown " but do have a belief in the integrity of independent valuers."
Integrity does not equal competence
Go back to what happened with IH.
It was uprated a year ago, with zero news from IH before or since, by 3.5x.
Then it was downrated, from memory by half, again with zero news from IH before or since.
Buying it involves a belief that pretty much everything we know about modern physics aint so. Not just a few bits but pretty much all of it because if IH worked as said then a whole lot of stuff that we know works, wouldnt.
And bear in mind, IH essentially was started up on the back of the word of a twice convicted fraudster who wont let anyone closely examine his work or devices, and which if it worked would be out there now pulling in money like nobodies business since you could just use it to produce essentially free electricity. Why isn't it out there just doing that?
So, given the "people of integrity" fell for that like a cheap magic trick, what about all the other startups, what did they promise and why do you think those valuers are competent again, (I dont question their integrity but their competence) to judge those?
Results aka company failures have shown they werent very good at choosing many of the biotech startups and even one that undeniably works, Proton or whatever its called, now may not actually make money.
I've seen the 3p report and think that while some of it is correct, it's overdone.
While I agree, finding funding without Woodford's hanouts won't be as easy, some stocks have been written down as zeros, purely because they will need funding.
You can't view a lot of the top 10% of the PF as purely fundamental plays and lots of funding is sometimes necessary.
Is this the right time to expect to get funding? is another question.
But I'd put this around the 20-25p mark, myself.
And might take a few in that area.
bestintown, this has been the issue with this for a while; valuations.
They can't be trusted and the majority don't care who's valuing them, after the IH hike.
It's exactly this and Woodford's shuffling amongst his funds and then listing in the Channel islands, which has led to his downfall.
If he was not very well known, the vast majority would be calling him a spiv or even a crook, simple as, because he was desperate and basically cooking the books, at the end, imo.
Whereas the polite consensus is that he's just made disaster, naive choices.
IT, "...and even one that undeniably works, Proton or whatever its called, now may not actually make money"....neither at this moment does Netflix or Uber but the market gives them a high value................ who knows where WPCT is going...... its just the high risk component of a balanced portfolio......
@bestintown theres a big difference between uber/netflix etc and WPCT.
The former are valued on the basis that their underlying business models will produce money.
WPCT is valued on the basis that its individual components business models will make money.
So you need to take the valuation of each one and add them all up. One, IH, is clearly to anyone but a dupe, worthless, so why trust the valuations of the other components when you know that one at least is clearly valued by people who've been duped, another, Benevolent, has clearly been wildly overvalued, and Proton doesn't look as if it will be profitable so why trust any of the other valuations the same people have made?
I dont think WPCT is the "high risk component of a balanced portfolio" because you dont just want a high risk element by itself. The high risk shoudl be balanced with a probability that their would be a correspondingly potential big payoff. Theres nothing now in WPCT to sugegst that big payoff is there as a possibility. Maybe there was 2 or 3 years ago. When they bought IH, they made it clear how competent they were at valuing companies future prospects, eg not at all.