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Good find. Woodford May split the illiquid portion of the fund out so perhaps a ray of light for CIR. Might hedge and top up half now and leave the other half to see what happens. Seeing some stability at 14.5-15p for now. Either way be good to have this done and dusted.
Yes you would have thought his role on the patient board would be small fry in comparison to his holding and role at CIR, I don’t think there is too much problem with his dual situation but CIR amongst others are dragged into the unpleasant Woodford saga and rumours aren’t helpful. I believe we should be very conservatively 40-50p right now but that does not look like a near future possibility. Still AZ and other funds holding at far above this price is somewhat assuring. GL all holders
had a look at the list of companies Woodford sold stock to to raise funds. In next post. Most of this sale was picked up by other funds. There is a mix of responses, some companies are not seeing ANY SP decline and others are, but not to the tune of 50%, tops 20% Many posters seem to think Woodford stock will simply be picked up by other funds if more capital raise is needed. SO, why is CIR being hit way more than others?? Steve Harris mentioned as being a Woodford associate in Patient Capital trust. Although Woodford representatives said ‘Woodford has robust procedures in place to mitigate any potential conflicts - the most crucial being the board has no involvement in the investment process or day to day investment decisions’ A statement from CIR on this matter please come on guys clarify your situation I also note again, no other funds or AZ are selling and they hold circa 90% of shares. Well let’s see where this goes! GL all
According to stock market filings, since Monday last week, Woodford Investment Management has reduced its holdings in the following London listings, in order of the minimum approximate gross value of each disposal: - vehicle marketplace BCA Marketplace PLC, to 7.14% from 12.59%, GBP78.7 million; - subprime lender Provident Financial PLC, to 18.43% from 23.44%, GBP65.7 million; - housebuilder Countryside Properties PLC, to 10.20% from 15.00%, GBP65.1 million; - guarantor loan company Amigo Holdings PLC, to 5.57% from 10.03%, GBP57.3 million; - housebuilder Crest Nicholson Holdings PLC, to 10.01% from 15.08%, GBP48.0 million; - property investor NewRiver REIT PLC, to 14.9% from 22.3% across three days, GBP46.3 million; - intellectual property commercialisation company IP Group PLC to 14.08% from 19.00%, GBP40.7 million; - online estate agent Purplebricks Group PLC, to 19.25% from 28.88% across three days, GBP31 million; - retailer Card Factory PLC to below 5% from 8.94%, GBP26.1 million; at the end of May, this stake already had been lowered from 10.06%; - construction firm Watkin Jones PLC, to below 5% from 9.19%, GBP22.2 million; - construction materials firm Breedon Group PLC to below 5% from 6.83%, GBP21.4 million; - media firm Time Out Group PLC to below 5% from 16.06%, GBP13.2 million; - outsourcer and construction firm Kier Group PLC, to 15.87% from 20.01%, GBP10.3 million; - intellectual property commercialisation company Allied Minds, to 23.22% from 28.21%, GBP9.4 million; - ten-pin bowling site operator Ten Entertainment Group PLC to 5.54% from 10.08%, GBP6.5 million; - housebuilder Barratt Developments PLC, to below 5% from 5.07%, GBP4.0 million; - housebuilder Taylor Wimpey PLC, to below 5% from 5.07%, GBP3.9 million; - respiratory disease-focused pharma firm Circassia Pharmaceuticals PLC to 24.47% from 28.03%, GBP2.5 million; - housebuilder Redrow PLC, to below 5% from 5.07%, GBP1.4 million; - defence firm Babcock International PLC, to below 5% from 5.03%, GBP721,809; and - drug discovery company e-Therapeutics PLC to 14.11% from 17.89%, GBP193,196. In total, these sales will have raised proceeds of around GBP550 million for Woodford Investment Management.
I had a look at the list of companies Woodford sold stock to to raise funds (below). Most of this sale was picked up by other funds. There is a mix of responses, some companies are not seeing ANY SP decline and others are, but not to the tune of 50%, tops 20% Many posters seem to think Woodford stock will simply be picked up by other funds if more capital raise is needed. SO, why is CIR being hit way more than others?? Steve Harris mentioned as being a Woodford associate in Patient Capital trust. Although Woodford representatives said ‘Woodford has robust procedures in place to mitigate any potential conflicts - the most crucial being the board has no involvement in the investment process or day to day investment decisions’ A statement from CIR on this matter please come on guys clarify your situation I also note again, no other funds or AZ are selling and they hold circa 90% of shares. Well let’s see where this goes! GL all
St James Park fired Woodford and have a new team, looks like they picked up the 4% sold by him. Well I guess the smart will have a plan and the traders know how to play it. If we hit 10p I’m going to fill my boots to the max. That’s a point where cap is below cash in bank P.S note the other funds and AZ are holding, no TR1’s. No shorts over 0.5% showing also. GL all dyor
Hi Meaningful . Yes you are right, we really just don’t know how the run on Woodford will affect us once doors open. I did read some article suggesting the more liquid stocks would be able to keep up with redemptions, I guess the fund will eventually settle as its oversold. Unfortunately the only way is to sit it out. Or take a punt, sell and buy back lower (risky) or if funds are available try and average down significantly if the SP drops further. RE the director buys. My Speculation!! since we know SH is on the Woodford patient fund board, would this put all the CIR bod under the insider info umbrella and preclude them buying? Because they would have known about this in advance 100% On the flip side director buys and shareholders will be shouting out they knew this would happen -AIM is corrupt call in the FCA. It’s unsettling but at least we know why it’s happening and can try to make the best of it.
He has made 500m available by the recent fire sale. If that holds back the selling spike then we are prob ok. It won’t be easy taking money out of CIR as it’s relatively illiquid on that volume, he would hardly get anything from it and the SP would absolutely tank, maybe sub 10p. Be great if AZ would step in. Agree with the posts on here that CIR is caught up in very unusual circumstances. Oppenheimer fund pulled out 10% before Woodford, add the alarm bells of the Woodford fund and here we are 15-16p when we should be 30p + absolute min. It is a great buy opportunity but keep in mind what’s going on. That being said this will eventually sort itself and head back North assuming CIR stays on track. GL all
Welcome and good luck!! The valuation is absurd but the Woodford connection is doing the damage. Hope this is in the bottom range now.
Yes, Woodford fear driving this down. Truth is we don’t know if Woodford will start unloading once the shutters are up. Can’t see stability until then and we know how his fund is going!!! Crazy situation, CIR statement welcome
Well it’s tempting to add at this level I admit. We shall see how things pan out in the short term...yes Woodford done with CIR, this stock now blocked to investors through his fund. But some concerns around conflicts of interest should be dispelled directly by CIR otherwise will be on investors minds https://www.google.co.uk/amp/s/www.thisismoney.co.uk/money/markets/article-7144923/amp/Why-fallen-fund-giant-Neil-Woodford-allowed-invest-firms-run-circle-associates.html GL
Good post Researcher, this SP is a joke now. I think sentiment is at a terrible low but the company has not commented at all???? They could announce a statement re the SP on the lines of ‘we see no reason for......’ the other concern is Steve Harris’ audit chairmanship of the Woodford patient board, although not illegal and does not effect the fundamentals of the company it might be muddying the waters. Btw are you invested here?
Agree-shambles and a mess Assume there will be an equity raise, but they are not even stating that’s definite. ‘In the event that the company does pursue an equity capital raise........’ Think this share has loads of potential but don’t blame anyone for now waiting for total clarity before making a decision.GL to those in
Good luck Ariel, Shame about today and yes hopefully lessons learnt for me too! Deciding what to do now!
Well done to those that waited for news. Cud - your gut was right, good call BT - good that you lowered your holding It’s not a terrible RNS but not surprised about the drop either. No divi payment and a possible placing this year. Well at least trading can continue and one for 2020/2021 unless there is a takeover bid. Very undervalued but understand sentiment is not here right now. GL
Yes lots of psychology. I have read and read read all the recent RNSs on this matter. The key statement is the independent legal report delivered in FULL states there are no further matters to report. This is not the bod making a statement, it’s an independent body. The audit would be complex because they need to go back to 2015 and amend all the preparation hours for the mainly food related employees. That might sound simple but could be a lengthy process. IF there was a further matter uncovered then the company would have to report it. IMO the company believes it can get this done by the end of the month, otherwise I think they would have suspended trading. I base my holding on this news and not some other speculative opinion of what ‘might be’ or scaremongering. Historically STAF been very stable, good divi payer and an average sp of ~£10, People plus has much higher margins and looks good for revenue next year. To me they don’t appear to have a untrustworthy history. All imo, dyor GL
Yes I think you a right. Like you I am confident the results will be roughly in line with expectation. If there were any other issues surrounding the audit I think an RNS would have been issued, information cannot be withheld. Beyond the 2018 results I think there is a lot up for grabs for STAF shareholders...maybe on reflection the Bod could have made a better effort with a short update to say all on track (I have been against that idea but perhaps it would have shown the bod are in touch with investor sentiment) Cuddo posted an email he received from STAF. Sounded ok, very formal so they don’t do great PR!!! Gl
Got any idea how much the market is punishing STAF for the awaited 2018 results? I am thinking maybe back to the 330-340 previous weak support area and 400 if the wind is behind us! It seems way too much punishment Just for the profit warning, particularly as next year looks more promising.
Hope the next ones go well but sorry to hear your out . Not worth messing with your well-being though! I do reckon this will go well though. I don’t have a timeframe in mind but 2018 results, a few director buys and some decent contract wins will push this back up. Motley Fool piece was pretty positive and fundamentals are good.
Yes we do need new funds taking up the slack if further tranches of Woodford selling occurs. This may be happening as we speak (800k vol today) just have to watch out for holdings updates. I guess as long as CIR delivers then the market will correct, a range from 19.5p-22p is developing, so hope that holds for now and is a very good entry or top up price. Peel Hunt reiterating it’s buy recommendation nearly every couple of weeks so they see potential. GL