The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
MrBB, I hope you are correct as I seem to have picked up a substantial percentage of the retail fundraise. Have to use it for trading if you are wrong!
Still cannot get over how the BOD has managed to get themselves into this position, and have done **** all about reducing their expense base. All they need to have is a bit of good news and none of this would have happened.
1) Why did AS want the retail offer to be undersubscribed? It was only open for 3 hours when most people are not online and it could have been left open longer.
2) Who are these people in the know selling down and getting mates rates and why doesn't the BOD buy at mates rates other than their paltry additions? Probably because they just want to keep their weekly pay and don't really care!
3) Where is the trimming of the BOD?
All very poor IMO.
However this does now look like a decent trading position, not sure how long to clear the overhang though, so I am going to revert to trading as it seems that is the only way forward here rather than waiting for the BOD to do anything. The only consistent thing here is that an RNS from the BOD looses us all money. Wish they would furlough themselves and shut up for a year!
Yes I bought a few on Friday as could not help myself. I think I am approaching the 3% now, will need to check when I get back to the UK on Monday as I think 3% is the reporting threshold. Need to check with my lawyers on what an EGM can actually achieve, they will all have employment contracts etc, no doubt very favourable ones if they drafted them themselves, and we need someone to actually run the company if we can kick them out.
I am sure we could get enough backing though to give it a good go, as I think almost everyone has given up any hope of the current BOD moving forward now. We are basically in the lap of the gods for a bid coming in on any of our companies rather than planning for a sale to maximise the price.
I don't think I have ever seen such a poorly run company from a shareholders perspective.
So another great RNS trashes the share price.
That being said PEEL, JBER and SCAP all are offering 9p but there is nothing to buy when you try to take them up on this offer so all is not what it seems.
Lukehere, I get your point but I feel I have more interesting shares to play around with right now rather than load up any more with TERN.
It does concern me about how inept the BOD is and do they actually have their own agenda they are playing to? However if there is any sign of good news I will be in, albeit at a higher price than we see today. Hopefully it will not really matter what price we pay if any of our companies are as good as we think, it will be a rounding error.
Where is the RNS? How can I possibly buy more shares with a BOD who are incapable of taking any action that does not line their own pockets. Absolutely zero leadership forthcoming.
Then again, if we do get an RNS that will be another 2p off the share price no doubt!
They should all furlough themselves for a year so at least we can all go and chill out and await announcements from our investee companies without draining the bank. Not sure the TERN BOD add any value to these companies in the first place on a day to day basis.
Have to admit, nearly bought more shares last week at under 10p but managed to resist as no point trying support the price until something happens, and if it drifts lower so be it, and a better buying opportunity.
It won't, I am just going to chill out until something happens, I have no leverage so not a lot to worry about and eventually something good will happen, but they do require a management restructure/ clean up, whatever you want to call it, jobs for the boys and girl with no added value have to stop.
Almost at 3% now so don't want to go over that as I think you have to RNS again.
BTW, bought some CHILL a few weeks back, £1.00 down to 2p, back to 3p today so 50% up so that will keep me occupied for this week! High hopes of a rebound to a decent number on this one, but what do I know!
I think this RNS is saying that £20m has been raised and so far only £5m used which means we still have £15m for the future at the same value as the initial raise. To me that means that TERN's value cannot increase until that £15m has been used which could be quite some time away.
Using simple maths, if you own 50% of a company valued at £10m you have a value of £5m. If they then raise £5m you get diluted to 33.33% but this is now part of £15m so equates to the same. Hence TERN can say their value has not diminished, but here I think it has as the new £15m has not been handed over yet so any growth between now and when the money is requested will benefit the new £15m investment and not the existing shareholders.
I expect some more selling today, don't think this is a value enhancing RNS, hope I am wrong though.
You can still vote against it though, albeit it won't affect the result, if it makes you feel better inside. Still cannot work out what is going on here as it is a remarkable achievement by the BOD to screw this up so badly, and then get the major shareholders onside. Maybe some very bad news we don't know about is coming down the track, and I guess 110p is still a lot higher than the 75p where a lot of people loaded up.
I think they are all covering their own arses and the lack of any action in trimming costs etc is appalling.
It seems management in the UK can just get away with whatever they want without any scrutiny. Look at TED, and their advisors, turning down multiple offers at up to 150p that they did not like, excuse of undervaluing the company, and then sell out at 110p. Pendragon, another favourite of mine, turned down Hedin's 28p as they hate each other and would probably get fired, and then recommend a 29p offer months later that they could not get across the line.
All these companies have D&O insurance to cover them for miss-management and it's about time some of these got hit.
Rant over from me, but turning what could be great winning investments into smaller ones by conflicted management has wound me up.
Still waiting for an AS press release that doesn't trash the share price, thought we almost got one yesterday with his resignation from DA!
The BOD must have secured themselves a better inside deal going forward as they just cannot be that incompetent. I would have thought a regulatory investigation will be forthcoming as to the real reasons in turning down the higher offers.
Can anyone remember if Al has ever released an RNS that hasn't trashed the share price?
Add the lack of any sort of urgency in trimming down the completely unnecessary cost base this does look more and more like it is just a company to fund the BOD's lifestyle. I have written to them saying an EGM will soon be called if there is no positive action ( obviously zero response).
I do still think that the underlying growth of our companies will still outweigh our BOD incompetence in the end, but must admit hopes of serious multi-bagging of our investments diminishes after each BOD error. Error being the polite way of putting it!
Also how does SP have 2.5m options after only putting £10k in the company? Obviously she thinks we are going places, maybe she should be going places!
I still cannot work out why the majority of Pires shareholders rejected the TERN offer ( considering the management had all voted for it) and now it sits at about 50% of the offer. I see why TERN shareholders rejected it (presumed as not declared), but just don't get the Pires rejection. So the Pires shareholders still think Pires has some value even after the management wanted to sell out, seems strange.
My dilemma is that I can personally by Pires shares today lower than the recent fund raise, and about 50% of what AS wanted to pay, so is that worth a punt? Most of their holders voted to go alone, so shouldn't be selling soon, so what are the odds of it hitting 5 or 6p before dropping below 4p due to lack of funds etc? I think I am going to have a small punt with a 25% win get out target.
So when are they going to do something about the bloated management costs that are unnecessarily eroding the growth of our portfolio? I expected some sort of action by now, especially having announced no immediate sales.