Woodford Concerns

AnotherJoe

Reading an article this morning about investment managers opinions on buying WPCT, and I see a company called Seneca bought into it in early June (and must be 15-20% down by now), take a look at Seneca and I see they employ Link. Incestuous or what?

seacaitch

AnotherJoe wrote: »

Reading an article this morning about investment managers opinions on buying WPCT, and I see a company called Seneca bought into it in early June (and must be 15-20% down by now), take a look at Seneca and I see they employ Link. Incestuous or what?

No. A gazillion outfits use Link in some capacity or other.

Nothing to see here.

bowlhead99

AnotherJoe wrote: »

I see a company called Seneca bought into it in early June (and must be 15-20% down by now)

Seneca were saying in interviews back in Jan/ Feb that they had bought back into the trust at a discount (having previously sold out at a premium) I thought the headline for this week was that they had reduced their holding a bit, though were still looking to rally institutional support for board changes.

take a look at Seneca and I see they employ Link. Incestuous or what?

My oh my. But the Link group has thousands of clients worldwide. It's not particularly incestuous if two unrelated investment managers happen to employ them.

What is this thread turning into, BuzzFeed? Neil Woodford's fund has a bank account. Which other funds use that bank? The Answer Will Shock You

Scarpacci

RM2 International, a company which Woodford owns 60% of, lost three quarters of its stock-market value today on concerns it will not be able to secure more funding. The company is burning through over $2m a month.

dividendhero

Scarpacci wrote: »

RM2 International, a company which Woodford owns 60% of, lost three quarters of its stock-market value today on concerns it will not be able to secure more funding. The company is burning through over $2m a month.

OMG it gets worse by the day, RM2 International is also likely to be suspended from the AIM market on July 1st :eek:

Is Woodford's name on some kind of "sucker list"???

masonic

dividendhero wrote: »

Is Woodford's name on some kind of "sucker list"???

These are the natural consequences for small early stage companies when a significant backer gets into trouble. Expect more of the same in the coming weeks.

Johnnyboy11

Amigo Holdings has had a tough week, down 10%. The Telegraph reported recently that Woodford had roughly halved his holding to circa £60m, so that's another £6m down the tubes...

bowlhead99

Johnnyboy11 wrote: »

Amigo Holdings has had a tough week, down 10%. The Telegraph reported recently that Woodford had roughly halved his holding to circa £60m, so that's another £6m down the tubes...

This can be spun either way because clearly Woodford was smart to exit half of it at a temporary higher price while he could.

Also in the the press today, BCA Marketplace (24% owned by Woodford, Invesco and Hargreave Hale) has received a £1.9bn cash offer from TDR and NB to take it private, so Woodford would liquidate £125m there assuming it goes through.

That's about £30m more than his piece would have been worth three weeks ago. £30m more than covers the loss of 11% over the last month at Amigo and the 70% loss in a day at RM2, put together.

You don't expect to win every battle.

poppy10_2

masonic wrote: »

These are the natural consequences for small early stage companies when a significant backer gets into trouble.

RM2 has been in business since 2007. Hardly early stage. It's just a failed company with a failed business model, that was only being kept alive by regular infusions of cash from Woodford who has spent over £200million on this company that now has a market cap of just £3.5 million. Without him they would (and should) have gone bust years ago. It's only now that he is unable to continue his life support cash that they are finally being put out of their misery

poppy10_2

masonic wrote: »

£30m more than covers the loss of 11% over the last month at Amigo and the 70% loss in a day at RM2, put together.

You don't expect to win every battle.

RM2 had already lost 99% of its value before the latest 70% drop. The £30m is a tiny fraction of how much he has lost on that investment