The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
... I've hung in as long as my patience and sanity will allow but I really think this is dogs**t now so I'm out. Sold 100,000 [my average was 16.9] so overall painful to the portfolio but I think a lot less painful for me than some on here. Anyway, my view is there are just too many complicating factors and risks in here now and this is FAR from a straight-forward deal. Feel relieved now [especially as I appear to have just beaten the last 8.3] but a genuine good luck to all of you with the balls to see this through to the end. Bigger than mine.
By the way twrchtrwyth, I just looked at some of your previous SEPURA posts so I I can see where you were coming from ..... ouch! I feel for you .... not good at all.
Fair point twrchtrwyth ... I guess everyone looks at these things from their own perspective. My real point was the likelihood of SEPURA not being able to trade through these delays. As disappointed as everyone was at the time I think the BOD had little option but to accept 20p becasue of its very weak position. The issue for me now is whether these regulatory delays were foreseen, understood and maybe even expected. The wording of the recent RNS suggests to me they weren't. So its stick or twist time. I am tempted to see this through to the end but I can't deny I am really nervous about SEPURA's liquidity if the approval is protracted. What is leaving me
This is squeaky bum time for SEPURA [and anyone like me who is still holding] but I find it difficult to believe they did not forsee something like this during DD. I'm with 1GW and will be interested to see some evidence some of the II's might be buying or at least not selling. There is obvioulsy some real risk here now and if the price gets back to anywhere near 18-19p then I'm out of here. As it is I am now nursing a paper loss on 16.75 avg and really dont know whether to stick or twist.
I'm with Motley on this Oddmoney and thanks for the follow-up. I will be taking up the rights issue but not increasing my base holding and then I'll be looking to hold this until at least the low teens which may take a year or so. I like the business, trust the managment and I think this is strong medium term opportunity.
Thanks for the honest answer Oddmoney and yes I'm of the same opinion ... they have earned my trust. That said I am going to be doing some digging on Letica but as relative long-term holder here [+2years] I'm very happy with my returns so far and will almost certainly topping up. GLA
I'm very much in the same boat as you Oddmoney but wondered if you had any opinion or knowledge of the outfit RPC are looking to acquire in the States? The board have a clear strategy and have executed it very well over recent years but they wouldn't be the first company to come a cropper dipping their toe into N.America. What are your thoughts on Letica?
Cturner99 - I'm with you on this. The story leading up to Hytera's offer does not make good reading and there is a certain sense of inevitability about how it will play out. The management and BOD seem to have got themselves into a mess over the last few years and were probably hoping for a counter offer as much we were. For me it speaks volumes that there has been no interest from other parties. I'm going to hang on for the full 20p [every penny counts] but this is an interesting little piece which gives some context to where we are today. I had never heard of SEPURA until September of this year so I can't really proclaim any great loyalty to the company but I do hope the Hytera offer gives the employees the best chance of keeping their jobs because I agree with 'Cturner99' that cash could be a much bigger problem for them than we think. http://www.cambridge-news.co.uk/business/business-news/sorry-tale-sepura-12331729
Thanks Brant but more luck than judgement and greed stopped me selling at my target of 26p. Do we ever learn. I don't understand what is happening at the moment but to be honest I didn't really know what was going on prior to Hytera's offer. My expectation following the Times article was for an offer around 30p and I would have been delighted with that. With my PHd in hindsight I can see I ignored all the signs that a significantly bigger valuation was coming our way but as I've ALWAYS treated this is a very, very high risk investment I'm cool with where I am at the moment. As an aside this is my first dabble on a BB and I've found it very interesting reading over the last few months ... some really good quality posters ... yourself included of course.
I'm still in at 16.75 and now happy to accept 20p. No sign of the cavalry approaching and given the last 18mths or so I have not got too much confidence in the business trading out of its current predicament. My view is the board may be between a rock and hard place regarding the Hytera offer. I will stick around until the deal is done and be happy with the 20% return.
I had similar thoughts Brant' but was concerned by what we don't know about the new contracts. I've re-posted what I sadi before Xmas below ... interested in your thoughts ... ' ... this has niggled me while reading this BB over the last few months. There is constant reference to Sepura's new contracts but I have never seen too much detail on what they actually are. For obvious reasons they are quick to announce new, large contracts but they only provide cursory information. I know these are primarily PR exercises to give reassurance to other clients, and I would not necessarily expect them to provide detail of the duration, timings and margins, but the fact remains we don't have access to this information. In my opinion the company has been in 'survival mode' for the past few months and my concern would be the pressure the commercial teams are under to secure ANY kind of contract at the expense of their normal margins or trading terms. Any thoughts? I'm a mid-teen holder here [even though it is at the very extreme of my personal risk spectrum!] and will sit tight because I think there is a 10-20% chance of something happening prior to the offer being accepted. For me this balances the small risk of the deal going pear shaped adn Sepura being left to trade out of the problem which does worry me.
Interesting thoughts Wonky but there is something which has constantly niggled me while reading this BB over the last few months and I would be interested if you had an opinion. There is constant reference to Sepura's new contracts but I have never seen too much detail on what they actually are. For obvious reasons they are quick to announce new, large contracts but they only provide cursory information. I know these are primarily PR exercises to give reassurance to other clients, and I would not necessarily expect them to provide detail of the duration, timings and margins of the contract, but the fact remains we don't have access to this information. In my opinion the company has been in 'survival mode' for the past few months and my concern would be the pressure the commercial teams are under to secure ANY kind of contract at the expense of their normal margins or trading terms. Any thoughts? I'm a mid-teen holder here [even though it is at the very extreme of my personal risk spectrum!] and will sit tight because I think there is a 10-20% chance of something happening prior to the offer being accepted. For me this balances the small risk of the deal going pear shaped adn Sepura being left to trade out of the problem which does worry me.
First post for me Batfink but been into Sepura since September and still holding 100k with mid-teen average. For me there is no incentive to sell yet. I was as disappointed with the 20p as everyone else but interested to see how it now pans out. Having said that I'm not holding my breath for anything more than 20p.