||EPS - Basic
||Market Cap (m)
|Equity Investment Instruments
Prospect Japan Share Discussion Threads
Showing 1 to 9 of 25 messages
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|Yes good point - deal seems very likely to go through to me, so would make for a decent trade.|
|Yes adding I believe. And probably shorting the acquirer.|
|A cash alternative would be handy.
Are Weiss adding or selling? From first RNS I thought adding.|
|On a technical note, the Japanese company has a lot size of 1,000 shares (around £500) so must be traded in units of this size.
I wonder how they will handle smaller holdings (assuming the offer goes ahead) or "residual" holdings that fall below the lot size. Might they be obliged to offer cash for these?|
|Thanks @greasynut; agreed re understated NAV.|
|Having looked at it this morning, I conclude that:
- The NAV is grossly understated, having a huge option-like element on the shares of the manager and potential acquirer, Prospect, in the form of Stock Acquisition Rights (SARS).
- This transaction therefore represents a buyback of potentially diluting shares at a price of 54 Yen, while their share price is today at 70 Yen.
- The Prospect Japan IT has been manipulated for the benefit of the Prospect management as the SARSs were clearly inappropriate for the IT, representing a silly proportion of NAV if they were ever exercised and could be bought back by the management at cost price should their shares perform too well.
- On the other hand, today's buyer can secure a cheap entry into Prospects' Japanese listing should they wish to hold an 'entrepreneurial' small cap which has demonstrated limited ability with asset management (in this case).|
|Been buying this morning - is possible (more than possible) I've done the maths wrong, but I fancy the offer to go through and I reckon it's cheap at only +20%, vs c.+52% premium.
Sadly, sold out of my losing LTBH on PJF some time ago, but had held it for ages & this has been an underperformer forever. Pretty generous offer to be over NAV, but is in shares not cash.|
|Weiss collecting 7.55%
Then the NAV drops....|
|On the watch list.|
Chat Pages: 1