Member Info for phenomenonnick

Cityal/Foxy - what's the significance of the trades? Genuine question. I don't understand a philosophy of "Do Your Own Research" combined with "follow how other people trade". We know all these stocks have people who are blinkered and think it's going to be the best thing ever, and people who think it's utterly worthless, and the rest of us unwashed masses somewhere in between. If I've done my research (which I have, and posted it in this case) and concluded I'm comfortable with the current valuation, why do I care whether others buy or sell? These boards inform my research by giving me exposure to a range of views, the insights (or lack of insight!) behind some of the trades. The actual trades are irrelevant. All that matters is the prices I buy at, and the prices I sell at when the market recognises the value I'd spotted, or conversely when I realise the market was right and I'd overlooked something. Or (more usually) when random future events shape the price one way or the other!

Haha and now the ad hominem attacks, lovely. Clearly there are no guarantees here, and I could be wrong. But for the record I've been following this strategy (buying shells or investment companies with assets around or below the market cap) for a long time now. It's all through my SIPP so it's easy to follow my performance. Stripping out contributions and looking at performance I've got an average return of 26%pa over the past seven years. I'm happy with that. Yolo is now 6% of my portfolio, my second largest holding.

Got them as a limit order. Putting my money where my mouth is :-)

Just tried buying 500,000. No quote available. Can't even buy 100,000!

Yeah you just don't understand. A first legal charge means that if the company goes bust you get the assets. The only thing that ranks before you is the fees of the administrator that you appoint to collect the assets. In the case of Magic Media Works Ltd the assets in the last filed accounts (before the £1.4m cash injection) were £50k of tangible assets (won't be worth a lot in a fire sale), £344k of stock (at cost, will be worth something if the administrator finds someone who takes the business on, otherwise not), £1.24m of debtors (should be relatively easy to turn into cash), and £252k of cash. Add £1.4m, deduct trading losses which I suspect will be £1m or so. There's a reasonable prospect of some recovery. BUT - that isn't even my point. My point is that even if you're right, a total write off of the secured loan to Magic Media Works is now pretty much in Yolo's price.

Haha I see what the others mean about you! The accounts to 31 March adjusted to market value. Since then Audioboom is down but Gfinity is up, and the Gfinity holding is larger. Overall it's a small increase but nothing material. Simplestream isn't quoted but from the announcements and their last accounts if anything they could exit at a premium. Don't think you understand how security works. I run a business that owns the freehold of a building. The bank has a charge over it for the loan. If the business loses money, if it couldn't pay the mortgage the bank will repossess. They take the asset. They don't "inherit the liability", the insolvency practitioner would sell off the assets for whatever it can get and hand the proceeds to the secured lender. I'm not saying it's great security (not as good as my building for instance) but it's not worthless. Even if it was completely worthless, at this price Yolo's market cap is worth only slightly more than its cash pile. I've made a lot of money investing in shells in that situation over the past few years, and I'm just saying I think at this price Yolo is looking interesting, with bad news about EJ already priced in.

So - I've been pretty ambivalent about this one, mainly as I wasn't sure about Electric Jukebox. I held 3m at peak, low of 1.3m, bought 500k last week at 0.75p. At today's close they're valued at £2.8m. This for a business which had £1.4m of assets at end-March. Say £1.25m at the year end (30 Sept) given it seems to cost about £250k a year to run. They've raised £2.5m and spent £1.4m on EJ. So they have about £1.1m of cash - so assets of £2.3m even if the EJ investment is TOTALLY worthless. It's a loan which is fully secured against the assets of the EJ business. That means if EJ does well, they convert and own 41% of the business. If it doesn't do well, they can enforce their security and take 100% ownership of the assets. Ok if the whole thing is a disaster they'll doubtless take a hit, maybe a big one. But somewhere around the current share price we're surely getting to the point where EJ being a flop is completely price in already. Surely worth a punt on any further weakness?

Up 19.35% from when? I thought they invested at 17p a share two years ago. It's now 13.38p mid-price. I make that a 21% fall not a 19% rise. Can't make my mind up about EJ. The other investments all look interesting but not outstanding - feels like each could do something stellar, but probably won't. Does only take one of them to take off to move the current share price though, and for a publicly quoted investing company it looks like it's run on a shoestring. I hold 1.3m shares, down from a peak of 3m when the EJ investment was announced - have sold some at a profit, some at a loss. Not sure where I'm at overall. Hoping it comes good but genuinely unsure about this one.

Think is Rocka, the RCN sell-off may be overdone but even if it pulls back to (say) 80p, MXCP have still lost a £10m asset. And as Magicp says, this is probably more about Tony Weaver's credibility. Wasn't he the CEO of RCN until last year? And the problems relate to prior periods - ie under his watch? So, however unfair, presumably concerns that similar problems could arise elsewhere?

Yes indeed Rocka. They sold essentially their entire shareholding of RCN for 180p a share in June, however, at that price their remaining options (exercisable mostly at 80p) had a paper value of around £10m which has pretty much evaporated. (Just 1.7m options exercisable at 32p are still in the money). So the fall is a bit bigger than the loss of assets - probably rightly.

Yeah that's me. I'm about done though. Maybe one more at most. Pleasing the price is rising and there's appetite for them it seems

Yeah I just did two non dummy sales and got 33.1 and then 33.75. Hoping the ones I'm holding will do better!

Anyone here got thoughts on a re-list price or fair valuation? I'm sceptical - on the one hand a good set of backers, on the other 1x revenues and 10x EBITDA seems an extremely full price to pay for a firm with no organic growth.