June 06, 2016

Eureka Report : We’re happy holders of Bailador

Mitchell Sneddon in Eureka Report via www.eurekareport.com.au 

I ran into a Eureka Report subscriber at a bar in the middle of the Yarra River (that’s right, right in the middle of the river) a couple of Fridays ago. He had just came from an AGM and was mulling it over with a Melbourne Bitter. I of course was mulling over another week of LIC analysis.

He told me he had been enjoying my pieces and following along with some of the stock calls and was happy so far. But he was a bit unsure about my last call, “that start up tech one”. The tech one was Bailador Technology Investments (BTI). It does not focus on speculative start ups, but unlisted late stage technology companies. Late stage means they are existing businesses and not just ideas. They are real businesses with real revenue who are looking for capital to move to the next level.

For those who have followed Bailador since it was brought into the LIC model portfolio, you would have seen it has been a mostly enjoyable experience. The share price was $1.01 when we made our purchase. The net tangible assets value of the LIC were and still are $1.16.

At the time of writing the share price was sitting at $1.17 ($1.16 today) but has been on a roller coaster ride recently reaching as high as $1.30. Right now I am not surprised to see the Bailador share price rise and fall by four or five per cent each day and on the back of no news about the underlying companies or from Bailador itself.

I spoke with co founder David Kirk last week to get his thoughts on the price movement. To read the full article CLICK HERE