TEK - Thorney Technologies

[So_Cynical]

Thorney Technologies re-listed after a reverse T/O in early 2017 at 0.235 cents per share, Alex Waislitz and listed Thorney Opportunity's are major holders with about 20% ~ Alex Waislitz is also Chairman.

They hold investments in APT, ZIP, OVH and NXT to name a few, they have held APT for quite a while, Thorney Technologies is a LIC with a high management fee of 1.5% and has never paid a dividend, current SP 24 cents so back where it started.

 

[peter2]

Another example of a fund manager having a few good years and using it to establish listed funds. These listed funds have never done as well as the private funds. Read about Alex Waislitz in 2018 BRW rich list. I've kept an eye on TEK and TOP but the're disappointing for investors. The fund manager is the only one making money from these.

If anyone is interested please see the Chairman's Update - April 2019.

"Why is TEK trading at a discount to NTA?
Well, I think that the wide range of exposure to the tech sector that TEK
provides is still not well understood. At the moment, people really only have
visibility to a few of the listed investments that we have in Australia, which
by the way, with the way they've performed, would justify people owning TEK
shares on its own. . . "

Remember Updater, that delisted from the ASX to go private in the US ? It's TEKs largest unlisted investment. Mr Waislitz comments on many of the investments that TEK and TOP hold in these updates.

 

[Dona Ferentes]

Alex Waislitz says he is working to rectify the “unjustified discount” of shares in his tech fund to their net tangible assets, as tech stocks globally remain under pressure from the coronavirus outbreak.

The high-profile investor at the helm of the listed Thorney Tech fund, which counts Afterpay ZipMoney and Updater among its biggest holdings, touted its $5.1m profit increase for the half and said net tangible assets improved to 37c per share in January. Despite that, shares in the fund are trading at 25c apiece on Wednesday.

“Directors believe that TEK’s continued strong performance over time will eventually result in a share market re-rating of TEK shares and the elimination of the unjustified discount to NTA which currently exists,” Mr Waislitz said in Chairman’s report. “We continue to look at actions which will help encourage this re-rating to occur.”

He added that directors were confident of solid growth in the medium to long term, and that the group was “as well placed as it could be in the current (coronavirus) circumstances."

- bet you the Feb NTA is lower than 37c

 

[Dona Ferentes]

Alex Waislitz says he is working to rectify the “unjustified discount” of shares in his tech fund to their net tangible assets, as tech stocks globally remain under pressure from the coronavirus outbreak.

- bet you the Feb NTA is lower than 37c

the NTA as announced for TEK at end-Feb was 30.1c; at end-March was 23.1c

.... the footnotes tell a further story

¹ All figures are unaudited and approximate.
² TEK directors recognise the challenge of trying to determine what effect the COVID-19 pandemic will have on the fair values of the TEK unlisted portfolio. While we continue to assess each unlisted investee company in light of the situation, an impairment provision of the unlisted portfolio has been made.

 

[Dona Ferentes]

just poking around ..... at 30 June, the FUM was $74mill, with most priced daily as they are listed, but with unlisted entities making at least $17mill (over $9 mill for US based Updater and Other Unlisted at $8.5mill). The NTA was about 30c per share .... it had risen with the rebound after first Covid selloff.... and still trading at a discount, around 25c.

Since then, some tech has gone ballistic, top 10 holdings including Z1P, MSB, QFE, DUB and CXL are all significantly up. Of course there are probably a few dogs in there (its pointy end tech!) but the best is Brainchip BRN .... at end FY, there was a holding of $1million, and now

..."Thorney has followed BrainChip for some time and we invested when the market cap was well below $100 million," founder Alex Waislitz said. "The recent spectacular share price gains have seen it now become one of the largest holdings by value in our Thorney Technologies LIC."

so we have to assume it is still held in the fund, and probably carried at more than $10mill

"BrainChip’s market capitalisation has gone from minnow to unicorn status in rapid time, so there are now huge expectations in front of it," he said. "The onus is now very much on the company to deliver substantial revenue from the deals it has announced. If it can live up to this promise, it would not be a surprise to see BrainChip come on to the radar of the major players in the global chip industry. We are watching it closely."

expect a surging NTA for TEK (was 38c end Aug)?

 

[Dona Ferentes]

Some $27.0 million was raised in Nov 2020 via a placement to institutional, sophisticated and professional investors at $0.35 per share; a $10.0 million entitlement at 35c also took place. Market cap is now $140 million.

As it is a LIC, the published NTA for end of March was 45c while trading in its shares has been subdued and is closer to 40c.. Unlike TOP, the company has not embarked in a buyback (at 10% down and a slightly higher MC, it is probably at the outside of 'possibles' in my scan of possible Wilson Strategic targets)

it's a bit hard keeping track of the holdings in TEK; there are a few.

From the latest Half-yearly: The five largest portfolio holdings are Z1P, UPD, YOJ, IMU and DUB, which represent circa 24% of TEK's investment portfolio. YOJ, IMU and DUB closed strongly at period end, together with other performing investments in the portfolio, including but not limited to BRN, NTO and RCL, adding to the Group's unrealised gain for the period. During the half year period, the Group became a substantial holder of DUG, CCR, SPA and CLU, and lodged a change of interests of substantial holder notices for VTI, ISU, TNY, DUB, OVH, QFE, JAY, ANR and RCL.

(and subsequent to Dec, new notices for CCR, OVN, 5GG and QFE have appeared; no mention of CXL)

 

[Country Lad]

Years ago it was always worthwhile watching the share prices of any company where Thorney came on to the register. Now, their own funds are a bit disappointing as they are pretty well following the index and not outperforming. This is TEK compared to XTX.

 

[Dona Ferentes]

TEK, now at 20c, has been trading at a significant discount to NTA for a while .

the company has just announced an on-market share buyback.

 

[peter2]

Noticed an article mentioning that the valuation of the unlisted Updater (once ASX listed) has dropped by 2/3. Remembered that TEK holds a 6% position in Updater (*) as part of it's unlisted portfolio. Not good for TEK as it's already struggling to hold it's value and has traded at a significant discount for years (now 0.17).

* SFC - Schaffer Corp also holds some Updater @galumay

Normally the TEK monthly updates detail some of their top unlisted holdings which includes Updater. However their latest update provides no details of the unlisted positions. They have included a statement that unlisted companies are having difficulty raising new capital and those that do, do it at valuation below previously achieved.

Owning companies that are losing value isn't going to help their discount situation. TEK continues to buy back its stock on market.

I keep an eye of both TEK and TOP (and other fundies) because I like reading the comments from Alex Waislitz on the current economic climate.

 

[peter2]

Continues to trade at a massive NTA discount (50%).