London & Boston (LBN) - set to double?

This company's shares look very undervalued currently.

It looks as though the change of business emphasis, away from being an investment company to instead developing a profitable holding company, has been overlooked.

With Audiotel (bugging devices), Moore & Buckle (niche packaging) and as of June this year PSG Franchising (property searches) the Group has three wholly owned subsidiaries making significant historic profits of over £2m per annum in total.

Each of those companies is capable of being built up and then either sold off or divested to shareholders as separately quoted companies. Or they can stay within the holding company and carry on pumping in the profits.

And as for the investment portfolio of stakes in Croma Group, Avatar, Harrell, Energy Technique, Merchant House and Netcentric - I wonder whether all are considered non-core to the longer term strategy of the Group.

Valued at only £14.6m, with its shares at just 9p, London & Boston Investments looks very interesting. With an investment portfolio of some £2m and making over £2m a year - that is cheap!

I note that its shares have been up to 12.5p in the last year, which is a level far below what I would have thought they should have been trading at today.

I reckon that these shares have been oversold by the market, which has not realised the Company's change of emphasis to that of a profitable holding company, which offers us private investors an inexpensive buying opportunity.

What do you think?