The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
https://www.deviceauthority.com/blog/how-combine-zero-trust-and-software-bill-materials-sbom-improve-nation-s-cybersecurity
Device Authority & Jitsuin bring real-time Zero Trust defense with assured SBOMs at scale
The President’s Executive Order signed on May 12th to improve the nation’s cybersecurity directly relates to the trustworthiness and transparency in ALL digital infrastructure (IT, OT, IoT, IIoT). Anything that runs software is in scope – cloud services, on-prem application servers and connected things – all systems that provide critical functions. (Article continues)
From afn board
17 Jun '21 - 18:46 - 2172 of 2173 Edit
0 2 0
I screen captured the presentation and QnA from my phone so probably not great sound quality but hopefully audible, in case you missed it or wanted to recap
hTtps://youtu.be/BA7LXTKnxUU
There seems to have been an urban myth develop over the last few years that Al Sisto is obsessed with raising funds at NAV, despite only 2 of the last 6 being at NAV and the other 4 above. Iirc (and I'm not trying to get this in chronological order) there have been placings at 26p, 18p and 12p. Don't quote me on the exact accuracy of those, it may have been 24 but it was definitely 20+. Easy enough to check the RNS details if it's a point of interest.
Mike Routhorn has been in Tern longer than I have, I started buying in 2017. He knows his stuff.
That does seem like a ludicrous sum until you look at Nuance achieving $20b from Microsoft recently. What do they even do, speech recognition? Who knows what DA can command. A lot more since the pipeline hack.
This is a very unique series of events that has resulted in such an undervalued sp imho. Tern have opted for a VC model to be carried out in an AIM listing. I believe they RTO'd a company already listed in order to do this. As such they, to this day, use the NAV of their original investment amounts. Peruse the financial statements to see if I'm telling the truth, this is your money at stake. So NAV has not priced in any progress at the companies, which is clear for all to see via the recent presentation as well as the ongoing PR of the investees themselves. However, even a great deal of this is shrouded in the secrecy of NDAs, which is perfectly understandable in the context of IoT security. The downside of this historically,in some LTHs opinions, is that previous fundraising has often been tied to a sorely outdated NAV. This has resulted in unnecessary levels of dilution (I would state that 330m shares is respectably low, but I understand the view considering Tern had c.100m shares not too many years ago). The flip side is that it has kept the sp suppressed to an unbelievably low trading range, which means an absolute monster rerate is in the process of unfolding. Dyor if you're serious, but quite frankly I don't care what you do. It won't stop the price surging past previous highs if you sell your stake. I'm holding for many multiples of today's sp.
I think the charts are a screaming buy signal all by themselves, and who knows; that might bring a certain level of interest here. It's welcome, of course. Everyone has their own individual investment style. For me, I think it more pertinent to look at certain fundamentals. Look at the percentages Tern holds of its investees. Look at the surge in IoT demand, both as a result of the pandemic and also as a way of boosting productivity, and therefore profit. Look at the lack of debt held. Look at the waiving of rights to issue shares as a form of capital raise. Look at the M&A market right now in tech. Then finally, look at the Tern market cap. The amount of money that the market currently values the whole share issuance of Tern plc. If you feel there is value to be realised, perhaps a great deal of value, then surely it then makes sense to buy or hold until said value is priced in.