Evil Knievil always used to say that the best time to kick a man is when he is down. And so I return to AIM-listed jam-tomorrow, next year, never investment company Tern plc (TERN) where I see that the shares are once again down.
Yesterday another adviser to AIM-listed jam tomorrow investment company Tern (TERN) has departed the building. We have already this year learnt that Tern’s Auditor slipped out of the back door under cover of night, and it is not so long ago that Allenby took on the role of Nomad, leaving one wondering if the former incumbents jumped or were pushed, shortly after Redleaf had vacated the PR role. Now Broker Whitman Howard has jumped ship. Should shareholders be concerned?
Well blow me down! AIM-listed jam-tomorrow POS Tern plc (TERN) has announced yet another fundraise, this time to raise £1.5 million at 8.5p. Given that the announcement came at 9am and the price just beforehand was 10.75p, that’s a 21% discount. Ouch.
Neil Woodford cash-guzzling NEX-listed dog Rutherford Health (RUTH) – the former Proton Partners – had been keeping a low profile in the wake of Neil Woodford’s sudden departure from the financial services scene. Of course, without Woodford around, there are questions as to who will have to foot the bill for his remaining £32.5 million funding commitment offered to Rutherford at listing in order to get the IPO away. Yesterday Rutherford announced a £20 million “impact-linked” loan facility from Triple Point Investment Management – but what are the terms? Is this money to replace the Woodford commitment? Is the loan secured or not? What is the interest rate? Is there an equity kicker? And what on earth is an “impact-linked” loan anyway?
I am indebted to Pierotlunaire for his post over the weekend on my piece Woodford Dog BenevolentAI: as predicted......but it is good news really! for the paperwork for Temasek’s investment into this cash-hungry dog has arrived at Companies House and as expected Temasek has take its pound of flesh.
The “good news” for Neil Woodford was that BenevolentAI had managed to attract an investment of $90 million from Temasek. The valuation of BenevolentAI was hit for six, dropping to around $1 billion (from $2 billion) but the other piece of good(ish) news for Neil was that this would drop his unquoted investments held in his Equity Income Fund, which was at the time well over its limit of 10% of the fund – partially because the dodgy Guernsey listings had been scrapped. But of course it also meant that book value of his investments in BenevolentAI had halved at the stroke of a pen.
Having been worth a total of £3.7 billion when it was gated at the start of June, Neil Woodford’s Equity Income Fund (WEIF) crashed through the £3 billion mark yesterday and as at midday was worth £2.987 billion according to Morningstar. By comparison, the FTSE All-Share – his benchmark – is almost exactly flat over the same period even before considering dividends. The underperformance is stunning.
AIM-listed Woodford dog and purveyor of revolutionary computer generated drugs Verseon (VERS) released its interims results yesterday – deadline day. A look at the balance sheet says it all as the company bleats that its Magic Money Tree (ie Neil-Knows-Best Woodford) is barren. It has no income, is piled up with debt and nobody wants to invest.
Yesterday on the back of interims from AIM-listed jam-tomorrow investment company Tern plc (TERN) I showed that despite the headlines of the interims, it is running out of cash. This morning, right on cue, it announced yet another quarterly convertible loan has been issued to its supposed jewel in the crown, Device Authority. If my maths is right, Tern will be totally skint by Christmas unless those fine chaps at HMRC hand over a bunch of cash to Device Authority and it hands it over to Tern...
Link Fund Solutions is, we are told, responsible for the valuation of Woodford Patient Capital’s (WPCT) portfolio of unlisted and other dogs, with the help of valuation firm IHS Markit. Since the gating of Neil Woodford’s Equity Income Fund (WEIF), Link has got its hatchet out several times and the official NAV per share of WPCT has dropped sharply from 89.61p as at the end of May to yesterday’s lowly figure (as at the close of play on Thursday) of just 72.85p. The last notified hacking was on 23 August (Industrial Heat) and saw 3.4p per share wiped away at the stroke of a pen. Last night at no-one-is-watching o’clock (6.20pm) another 4p disappeared from view. It is death by a thousand cuts.
Another bad day in the markets saw Neil Woodford’s funds having more of a mixed day. His Equity Income Fund lost 0.25% and closed below £3.2 billion but Income Focus managed to buck the trend and put on a tiny 0.03% in NAV per unit and even Woodford Patient Capital (WPCT) showed a modest gain when its NAV per share statement was released yesterday...
Only last Friday I predicted a fundraise by AIM-listed Neil Woodford backed cash-hungry dog Xeros (XSG), pointing out that Neil hadn’t any cash, in the wake of news that Xeros had sold its US washing machine business. Amazingly, the shares went up even though it was clear the company needed cash and was still haemorrhaging money faster than your average washing machine drains water. The passing of this crock as a going concern by the auditor as a Going Concern only at the end of April will have shareholders all in a spin (that’s enough washing machine gags – Ed). Well blow me down with a feather – its Ouzo time.
Neil Woodford cash-hungry dog Atom Bank has produced its Annual Report for the year to March 2019. As you can see HERE it is a beautiful document full of nice pictures and lots of blurb to keep the sheep happy. But no amount of presentation can hide the truth: it burning cash and – incredibly – lending at a loss! That’s not a business, that’s a charity!
After bailing out the ridiculous AIM-listed RM2 (RM2) over and over again with other people’s money before his own supply ran dry, Neil Woodford finds himself completely snookered this morning as RM2 has announced a bailout fundraising without Woodford and he faces the choice now of being diluted to oblivion or watching it go bust. Of course, readers of this fine website have been warned and warned and warned. But Neil always knew best.
I still see the occasional after-hours RNS which, were I a shareholder in the company concerned, would make my blood boil. Yesterday a release from AIM-listed Woodford Dog Netscientific (NSCI) at 4.42pm on a Friday evening ticked all the boxes.
We all know that markets have been a bit skittish recently, which will mean that investors will be looking to sell unit trust holdings. And we know that Neil Woodford has faced the double whammy of redemptions and his cash-hungry dogs which need feeding. And on Friday morning Kier group (KIE) announced a rights issue: it never rains….