Member Info for lordloadsoflolly

Guys, proof of concept is one thing. Selling Microsalt into the major food producers quite another. Not saying it won't happen. I suspect it will eventually. But until it does, the share price isn't going to make major inroads. Sure it might move a few pence up or down. But that's all.

That's not to say I don't see potential in TEK longer term. I do - and I continue to remain invested here. But I think posters who keep telling us they've topped up and how under-valued TEK is are tending to view things from a mid-2021 perspective. Global markets have since moved on. Growth stocks have been clobbered, currently continuing to trade under an even greyer cloud than value stocks. I suspect that trend will eventually reverse, but I don't see it coming quickly. And until it does, I also don't see the market viewing TEK as anything like a bargain basement share.

FlagStaffIR - for me, you've highlighted the CFO's most relevant points there (though I think the Outlook paragraph is yours rather than his?). Part of TEK's current problem (share-price wise) might be down to PR/lack of media following etc. But I believe a far bigger part is because investors are increasingly refusing to take future growth promises on trust. Not just with Tek Capital, but in general - particularly shares which fall into the "growth" category. So until we start seeing any of its portfolio holdings becoming $100M+ businesses or a special dividend being paid, the market will remain sceptical and TEK's share price will continue to trade well below NAV.

littlened - I hear you when you say: "The reason for buy back is that the shares are worth less than the net asset value. It is a no brainer." However, if it were a complete no brainer, EVERYONE would be doing it. SMT's managers may be confident that, long term, it makes sense to buy back their own shares when they're trading well below asset value. But that doesn't mean it's a no brainer for PI's to follow suit. SMT has engaged in buybacks many times before. Often at prices significantly higher than today's. If PI's are investing similarly long term, then I agree it makes more sense to buy/add when the discount to NAV is high. But short to medium term, it's no guarantee of success. The discount to NAV could simply widen even further.

It's only a bargain if Avion says they're proceeding. Otherwise IMM's share price will go significantly lower. But I do think the longer we wait to hear, the less chance the news will be totally negative. Surely if they'd decided not to proceed, they'd have done so by now. But I do think there will be further strings attached when Avion finally responds. So - unlike some others on here - I'm not convinced IMM's share price will surge ahead. But it could stabilise a penny or two higher.

SYN00GOLD - ignore previous message. What I meant to say was "How could we NOT be aware, when you've taken great delight in telling us all about it in your recent posts." Anyhow, good luck, but if ever there was a gamble in stock market investing, yours is right up there.

SYN00GOLD - HYou've publicised

Laughton - haven't seen that anywhere, but it doesn't surprise me if they have. The vast majority of brokers & analysts make Liz Truss look like she knows exactly what he's doing.

Well perhaps you should be a little less cavalier in your investment approach. But best of British.

Synoogold - I hope for your sake Avion don't come back with a "computer says no". I'd think this was less likely the longer things drag on. There again, for all we know, they could already have given a provisional non-binding suggestion of this to IMM. But allowed them time to try to find a new partner before making their provisional suggestion official.

TopCatz - maybe someone finally listening to me!

Spoonington - glad the Trustnet link was helpful. I too don't see the recent increase in buybacks as negative. Conversely, nor should they necessarily be taken as a cue for other investors to buy. SMT tends to take a very long term view with all its investment decisions. So staging buybacks now probably just means that in their eyes the share price is likely to be stronger in 5 or more years' time. Let's all hope so anyway!

DorsetLSE: Check out this FT link (scroll down to "Cash flow in GBP"), showing how SMT has been increasing its cash reserves, notably over the past two years: hTTps://markets.ft.com/data/investment-trust/tearsheet/financials?s=SMT:LSE I imagine that's what they're using to fund buybacks, rather than liquidating any existing holdings. But I am only guessing!

jollyspeculator - cash at bank and in hand at FY21 end was just over $3.5M. Should just be enough to pay the staff and keep the lights on still! A placing when the share price is this weak would make the UK's "mini" budget look well thought through.

Gheko & trustedinvestor - that’s fine. You just keep on topping up. After all, some day it’s got to hit the bottom, right? Think you’ll find I’m not the pricewatcher here. But anyways, good luck with your investments.

Wise is doing OK - without needing to dish out a dividend. Admittedly it's down from its Sept 21 peak. But not by half. And at least its current direction of travel is upwards. Scout24 SE is another. SMCI another. Anyhow, no point wasting further time on this, as it'll become boring for other readers. You carry on putting more money into TEK if you so choose. That's entirely your prerogative. Just as it's mine not to.

baf3 - 1) OK then. Why don't you name a few other tech companies whose share price has halved in under 5 months? 2) I'm not basing any share value on communication. No idea where you got that from. As I've explained, there's currently a lack of visibility on any future dividend re-distribution/exit strategy & that - in my view - has adversely affected the share price. The market CAN work out a value for this stock perfectly well. And it's currently 17.5p at the mid price. You may not like it. Nor do I, but that's where we're at for the time being. And it's no use simply arguing TEK is misunderstood or trading beneath the radar.

baf3 - I beg to differ. You simply can't blame the market (or "weak/forced sellers and traders ultimately controlling/affecting the share price") for a halving of TEK's value since May. Sure, plenty of other stocks - especially in the tech sector - have dramatically dropped from their peak over the past year. But few have halved in 5 months. To me, your argument is reminiscent of Trussonomics. What seems like a foregone conclusion to a few may not always work out that way. As a holder, I sincerely hope it does. But I think it's very dangerous to regard it as a great "opportunity that you can pick stock up at 18p or less". Without a fundamental change in strategy & investor communications, I fear we may be further off the bottom than you think, even if things do eventually pick up. Which is why I won't be adding - for now at least.

I don't think the market's ignoring TEK. It simply wants a clear exit strategy which Clifford hasn't provided. Saying the end game is to divest its holdings & distribute special dividends sounds great on paper. But despite two IPOs already being completed, TEK's share price has drifted ever lower. So what 's the incentive to invest further? Sure you can pick up shares currently for around half their level 5 months ago. But that, to me, is not a sufficiently compelling reason to throw more money at it (though - for clarity - I am keeping my existing holdings for now, in the hope of an eventual upturn).

littlened - aren't you specifically referring to the UK there? In which case, it has minimal impact on SMT, as only 2.2% of its holdings are UK based: hTTps://www.trustnet.com/factsheets/T/be08/scottish-mortgage-investment-trust-plc/