You clearly have not read the latest registration statement and I suggest you do. To make it a bit easier for you.
1) I suggest you check out Mr. Thomas Akin of Talkot Crossover Fund. In case you didn't know, he's on the Board. Also, you should find out who really owns the shares in Alternative Investments, Ritchie Capital and Corsair.
Insiders are selling shares they bought no more than 4 months ago at substantially lower prices.
Now, here's another point for you to ponder, since you seem to like numbers. Would you agree that one should not pay much of a premium for a closed-end fund, especially one that is in need of a continuing future cash injection via share placements and one that can be replicated with profitable pulicly-listed companies by oneself?
If so, let's look at how ACRI values it's investments.
These are all based on the latest transaction's reported and ownership position's reported. There's certainly some fishy going's on (selling shares at high prices and buying them back etc...), but that doesn't affect this analysis.
Basically, ACRI is a venture fund with a bit on money management tacked on. So let's value it like they have, since they know far more about any of these investments than we do (or at least I hope they do).
SOUNDVIEW: They currently own 66.7% and the latest transaction secured 15.3% for $1.2mil. Both the buyer (ACRI) and the seller (the founder) value the company around $7.8mil. ACRI's ownership based on their own valuation is worth $5.2mil.
MERCWERKS: Follow this one. They originally invested $100,000 for 100% of the company, then immediately sold 30% for a gain of $119,551 (cost base 30,000). That would have valued the company at $500,000 --this for a company that hasn't developed anything yet and has no revenue and is a cash drain. Then they bought back 20% of that from the same party at a different valuation. Bottom line, using last transaction, their 89% ownership is worth a rather dubious 450,000, but we'll give them the benefit of the doubt.
COMBIMATRIX: Latest trade increased their ownership and valued the company at $3.2mil. They own 66.7%, equal to $2.1mil.
GIT: Another follow the bouncing ball. Once again buying and selling from the same shareholder (undisclosed) at varying prices. Bottom line, the bought 3.31% of the company, valuing it at around 7.7mil. Their 33% ownership is worth 2.54mil. Interestingly, they have no income or product and their original price valued the company at no more than 3mil. Wow, doubling your money on a loser based on internal valuations --not bad. I actually thought PW was a good accounting firm --oops, didn't they work for BCCI, or was it Cendant?
INTERNET: That's easy, they bought 25% for 2.5mil (quite a steep valuation for a company with nothing).
WhiteWing: Easy too. Public value of 18.6% is worth $800,000.
MONEY MGMT: I did find out that they had $20mil under management last year (boy their fees must be really low to only show quarterly fees of $30,000). In either case, at 4% of assets it's worth less than $1mil.
Tally that up and you get a grand total of $14.5mil. Add whatever cash you want (although they do have a few promissory notes out to their subs), net the debt out. Don't forget all the future funding and dilution since there's basically no earnings in this baby and that means this closed-end fund, with a market value of close to $80mil is trading at one monstrous premiuim based on the values the owner puts on their investments.
No matter how you skin it, this basket of crap ain't worth 4x the company's own value. No wonder they want to issue as many shares as they can. There are plenty of public, profitable alternatives in each area of business they're in, so no one should pay anything more for their bag of crap.
Follow me tz, or did you forget to read the details in all the filings? |
