Woodford Concerns

AnotherJoe

No one there had the cojones to value it at zero when Woodford brought it back from his US travels. And to be fair I suspect that would have been a sackable offence and they had a mortgage to pay.
So I guess the long term plan was to upvalue and then gradually revalue down to zero as if it had promise but didn't work out, "just bad luck", " some of these companies don't pan out", " worth the risk" - insert your own cliche
The alternative is they are so stupid they shouldn't be in charge of valuing anything. These isn't a way round this. Corrupt or utterly gullible. Take your pick.

Thrugelmir

AnotherJoe wrote: »

80p in the pound for something Woodford has valued sounds like too much to me. Not so much vultures, more parrots.

You are obviously far better informed than many.

AnotherJoe

I have the same information as you.
Multiple companies gone bust. Some just weeks after injecting millions.
Multiple companies drastically reduced in value.
Multiple companies needing cash infusions to stay solvent.
At least one company valued at millions when it's clearly worthless.
Given all that, 80% of what's left seems generous, unless you know more than I do and know all the bad news is out of the way, all the devaluations are in the past.

Brian65

AnotherJoe wrote: »

So I guess the long term plan was to upvalue

My understanding is Woodford & sidekick wouldn't have got their £60 million dividend if they hadn't inflated the valuation as their fees are based on it?

Thrugelmir

AnotherJoe wrote: »

Multiple companies needing cash infusions to stay solvent.

That's the nature of early stage companies. The earlier one invests the greater slice of the potential pie. As funding rounds go forward a value is placed on the R&D to date. If early stage investors were diluted in terms of their share holding no one would ever be an angel investor. There would be no benefit.

AnotherJoe

Yes but Woodford seems to have gone ***** out to do that in spades

Thrugelmir

AnotherJoe wrote: »

Yes but Woodford seems to have gone ***** out to do that in spades

The TV programme Dragons Den is a consumer version of the real world that does exist. Facebook, Amazon, Apple etc would never have existed without people with deep pockets.

iglad

WPCT tonight at 32.5p I expect it to go below 30p quite soon.

Thrugelmir

iglad wrote: »

WPCT tonight at 32.5p I expect it to go below 30p quite soon.

Depends on the performance of the underlying investments. Only takes one to IPO or generate a spin off company. There's some interesting activities undertaken buried within the portfolio. Once the shareholdings in WEIF are digested. Then no reason why the share price won't improve. Though unquoted companies will result in a permanently high discount.

AnotherJoe

Thrugelmir wrote: »

The TV programme Dragons Den is a consumer version of the real world that does exist. Facebook, Amazon, Apple etc would never have existed without people with deep pockets.

And ? No one would dispute that, however most that do invest in startups, and I did once meet one of the top people in the US that do that (Tom Perkins) do have the ability to pick some moonshots. Woodford seems have specialised only in rockets that blew up spectacularly on the launchpad