The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Use the magic of copy and paste to add your predictions to the list:
faz147 - Invesco
Seeing-2020 - Ark Invest
Alessxito – JP Morgan
PM44 - JP Morgan
Lewbo18 – Ark Invest
BeefcakeBrutus – Goldman
Flutterbutternut – Alphabet
redindi - Ark Invest
terrym – Softbank
Bud_Fox – Conifer
MaxVolume – Morgan Stanley
DR777 - Franklin Templeton Investments
UpDownWeGo - Raymond James
Agm888 vanguard ( outside bet)
shallwe - Ark
Jazzindahouse - JP Morgan
sportraider1 - Capital Group
RedditchRocket - Sequoia
TLS - Toyota Ventures (or what ever it is called now, for an outside bet)
Chairboy - T. Rowe Price
Excellent news today! I checked my notes from last year's CMD and I wrote down the following quote from PM re the aviation business: "extraordinarily high selling prices and recurring revenues." I wonder how we would generate recurring revenues from this product? A fleet style product for plane maybe? Or ongoing data analysis perhaps?
Interesting comment about SEE from Safestocks today. Let’s hope the share price rises so that if a takeover approach comes it’s at a decent price...
Lessons for Seeing Machines
There are lessons from this for private investors (and even management) in Seeing Machines, I believe.
Firstly, Lombard Odier, which holds 23.45% has accepted the Wameja offer. I do hope Seeing Machines is eventually taken out at a healthier premium. However, at its current price it remains vulnerable, particularly as Lombard Odier, via Volantis 1798, holds a jumbo 19.9%.
This also has lessons for holders of any share; there is an opportunity cost for holding a stock for years and years in the hope of a bumper pay day.
Thanks Morg. That's just over 47% of the shares in the hands of long term institutional investors. Would be nice to see one or two others on the list but many asset managers will not look at companies with a market cap below £200m.
Polar normally take 3% stakes in companies but given SEE's low market cap it looks like they have opted for a half position.
Good that SEE has a broad base of quality institutional investors - would be nice to see one or two more, particularly US based. I'm sure it will come.
Let's see what Killik (our 4th largest shareholder) are looking for:
Broadly speaking, the Special Situations team look for companies that fall into the following categories:
Firstly, by discovering companies that are trading on unjustifiably low valuation multiples – so called “re-rating stocks”; and secondly, by seeking companies that we believe are set to grow ahead of the expectations of the market – i.e. “upgrade stocks”.
We are investment managers, not speculators, and it should be noted that all investments are made on the basis of our normal 18-24 month investment horizon.
https://www.killik.com/invest/specialist-investments/special-situations-portfolio/
Despite the aviation sector being on its knees right now I imagine the simulator businesses have never been busier, helping keep pilots sharp and ready to return.
I’m convinced a FFS contract is going to drop and I check for the RNS every morning at 7am like an excited kid on Christmas morning!
Good point Terry... plus PM said that fleet alone more than justifies SEE’s market cap. I think all 3 legs of the stool have significant value, just need a few contracts to land and then the market will wake up!
Thanks Red, perhaps Sanjay will have to revisit his price target soon too. Seems crazy to cut it by such a large amount (despite the issues, which have now largely been resolved), just goes to show you have to take them with a pinch of salt.
Thanks Terry, so that 28p target is 19p factoring in the fund raise. Not bad and think of all the progress made since then too! Hopefully Stifel’s target will be in double figures, can’t be long till they publish their first report/rating.
Morning Terry, thanks for posting this, when was this blog written please (pre or post fundraise) and do Panmure still have a price target for SEE? I wonder what target price Stifel will give SEE... it’s got to be higher than Cenkos’ target!