There's a long article about Mr Waislitz in today's 'The Australian' and the attached is an excerpt. The second paragraph provides a message and the final paragraph is most prophetic:Thorney and its LIC Thorney Technologies have some pre-IPO investments but Mr Waislitz says the better investment opportunities for now are in companies which are raising funds at lower valuations than previously and providing a cheaper entry point for new investment than was the case a year or two ago.
“The pricing power is with investors, and if you’re looking to employ new money then there are opportunities with companies where valuations are dramatically down and so there’s prospects of getting good returns there in the next few years,” he says.
Unfortunately, US-based firm Updater – which provides online services which help Americans move house – is a prime example.
Somewhat controversially, Updater privatised and delisted from the ASX in 2018 when it had market capitalisation of about $680m in order to seek a better valuation on US private markets.
Thorney has been a long-term shareholder and has suffered as Updater delayed its US float plans. It has reportedly had its valuation slashed to about $US260m ($407m) after a recent capital raising round.
“Updater is a classic example of what not to do when you’re going off a listed company bourse,” Mr Waislitz says.
“We are still in there and are not happy … but you have to wait it out.
“That’s the Darwinian nature of this type of investing; there are those that take advantage and those that suffer in these difficult times.”
