Member Info for Globex

Nobody here is plotting S4's demise. Let's save the conspiracies for another board. This isn't a football match where we have to take sides.

You can believe there is potential in the underlying assets at this bombed out valuation, while also raising reasonable questions around the quality of management that got it to this position, given they've overseen what is by any measure a high level of shareholder value destruction.

Next time results come let's also remember how he stated Trump would be good for business. After blaming macro uncertainty for approaching 4 years now, he clearly signalled that excuse could be put to bed because of positive tailwinds generated by new US administration.

Felt it was quite a bold statement given the potentially destabilising impact of some of Trump's policies, but Sorrell couldn't have been clearer there. So if he later on reverses this position and blames future underperformance on some aspect of US policy, I'll know he's really been taking the p*ss.

Very simply there won't be enough money after costs to acquire 'a series of assets' to grow the company, so what has been presented is actually very far from a clear plan.

I'd like to know where the succession plan is. Surely Sorrell must understand a lack of it creates uncertainty for existing and potential investors. You would think turning 80 would hammer this point home to him pretty urgently. I know he has a big ego but surely that doesn't extend to him believing he's immortal.

New directors talk about investing in financial services but seems a bit detached from reality when they'll only have £1.1m cash to play with. Even taking into account bombed out rump portfolio they'll presumably now liquidate, can't see it going far. Fees for maintaining the listing will come in at ~£500k annually, then there are salaries. By the time they've then paid the leccy bill they'll have about 50p left.

As well as slashing headcount, priority #2 should be to get back whatever they can from the money pit US lab.

Expensive facilities on 3 continents for a company this size just as absurd as all the corporate hangers on.

Concentrate everything back in UK where investor base is, where it's listed, and not to mention home of biggest potential customer in world (NHS) - IF they can get the necessary validation.

Has to now be worth the entry price for this alone. Would surely be a very good fit for likes of LVMH.

New exec chair's priority should be to urgently to slash staff numbers. Just at those job titles. Have you ever seen so many senior positions for an Aim microcap valued this low? A good chunk of them will be US based also, so with it far higher remuneration than they'd get in UK.

Rather than being gifted warrants/share incentives, most of these should be shown the door. In fact anyone working for the company that isn't either a scientist or generating concrete sales should seriously have to justify their position.

This is an absurdly top heavy company. They might have ditched Burrows but with £10m+ still going out the door annually, it's do or die.

Deep deep malaise across nearly all UK non-food listed retailers now.

Starting to wonder if the crux of the problem is maybe they're all just a bit sh*t?

What this really calls for is another Sorrell youtube interview

Never take those sorts of posts seriously. Some people will claim anything if they think it will help the value of their own holding. Those with actual insider knowledge - and this goes for any stock - will always know better than to post about it on the internet. Just make a mental note of the usernames so you know who lacks credibility for next time.

Have you considered posting that a 5th time in case anyone missed it?

Bulls or bagholders from that far back will be long gone, so at this point you're preaching to the converted. Sadly absolutely nobody left to care about an I told you so post based on what you did or didn't say 3 years ago.

Too many false prophets lately

True, but imo they should rip the plaster off and get a cut over with asap. Be quite a reasonable thing to do after SJP mandate gone, would show they're being realistic about outlook. At a certain point, a yield too high can impact credibility.

Jupiter could equally look at acquiring acquiring (or merging with) Liontrust or Impax. I am surprised we've not seen any consolidation amongst the UK asset managers. All facing same challenges, but equally look like opportunities with bombed out valuations. They can't keep getting smaller forever. Maybe this will be the year we see a bit of M&A.

There are zero shorts declared above 0.5%. Vast majority of book is long.

Today it'll be read across from Jupiter, their most recent quarter saw higher outflows than expected. Active managers in a bit of an existential battle. I do think this/lio/jup all look value now. But here with the continued outflows sustainability of dividend has to be in question which will be adding to the uncertainty.

Buck should stop with CEO. Apart from this he's never held a senior position at any other plc, let alone been on board level and it really shows. The company has issued information to the market that ended up being misleading so many times, and ultimately that has to be down to the CEO.

After overseeing this sort of value destruction it's actually a mystery how he clings on. In any other normal plc he wouldn't have lasted this long. Could simply be there aren't enough significant stakeholders left now that even care enough to force a change. Might as well let it die and let him go down with the ship.

Wrong board sorry