Ocean Wilsons (holdings)... Share Discussion Threads

[podgyted] 26/11/2020 22:34

The problem is as you say "the family run it" - this is a deep value play, but it may take years to play out. The family control the organisation that manages the investment portfolio - their performance over the last few years has been poor at best. Their investment in the ports look good but only if they liquidate - because once again they are a drag on the price. I'm in for the value - Nirvana depends on whether the family decides to cash in. That is may view - I also suspect it's why II's stay clear of an obviously good income play with potential growth.

[livingstone20] 26/11/2020 19:32

A nice run up from quarterly results and I think there is still further to go. Once the dividend starts to update in to all the data services this should stand out on filters as a great yield, with Brexit security of if being in dollars. It looks like the family mainly run it for dividend stream so that should have some security, with potential upsides of special dividends if they ever complete a transformational transaction, Real exchange rate reversal from long term low and investments fund growth post vaccine. There must be plenty of smaller company, special situations, emerging markets and high income funds who would be interested in tucking away a few at 7 per cent yield at fairly low risk with scope for capital growth as well.

[piedro] 23/11/2020 12:17

pockstones22 Nov '20 - 19:50 - 1360 of 1365 "... I am not sure it does suit the family for it to stand at a discount indefinitely otherwise why did they try and sell the ports last year?" Why do you guys think that .... they tried to sell the ports? What they did was sound out the market. Just as one might do a dummy run on a share price. It may or may not lead to a trade But more important can indicate market sentiment AIMO

[varies] 23/11/2020 11:17

pockstones It is difficult (and gratuitous for us as outsiders) to tell what might be in the best interests of the Saloman family but I expect that they and their advisers are well aware of the tax implications of any steps they might take to realise the value of their holdings in OCN and Hansa. I do agree, however, that this is a factor in considering the attractions of OCN shares. Under the present arrangements the older members of the family can take comfort in knowing that their children's and grandchildren's fortunes are securely invested whereas cash raised might be readily spent, perhaps with disastrous effects. The annual dividend that I receive is well over the price I paid for my shares and is always very welcome when it comes. I believe that there are few safer investments on this yield.

[linton5] 23/11/2020 10:51

Nope not playing ball there must be a buy order in here at this cheap price aw we’ll spend my money elsewhere

[linton5] 23/11/2020 10:34

Come on mms play the game here let people buy or move her

[linton5] 23/11/2020 10:29

You can’t buy any bud yes very good company had my beedy eye on this for a bit

[henchard] 23/11/2020 09:06

Discount 47% right now. Historically high? hTTps://www.fool.co.uk/investing/2020/11/23/3-uk-value-stocks-i-think-could-make-me-rich/ "UK value stocks #2 Another business I’d be happy to buy a slice of is Ocean Wilsons Holdings (LSE: OCN). This one is listed on the FTSE main market, and has a capitalisation of £241.4m. OCN has a controlling 58.16% interest in Sao Paolo-listed Wilson Sons — one of the largest providers of maritime services (towage, container terminals and so on) in Brazil. OCN also has a portfolio of around 80 international fund investments (e.g. Findlay Park American and Adelphi European Select Equity). Based on Wilson Sons’ latest share price, and current exchange rates, OCN’s interest in the business can be valued at £243.4m. This is equivalent to 688p per OCN share. Meanwhile, the value of its investment portfolio last reported (31 October) was £211m, or 597p per OCN share. Therefore, the sum of 688p and 597p gives OCN shares an intrinsic value of 1,285p. Yet they’re trading at 682.5p — an implied discount of 47%. Put another way, OCN shares buy you Wilson Sons at a small discount to its price on the Sao Paolo stock exchange and you get the £211m investment portfolio thrown in for free. My calculations suggest OCN is another top value stock on the UK market."

[pockstones] 22/11/2020 19:50

Varies I am not sure it does suit the family for it to stand at a discount indefinitely otherwise why did they try and sell the ports last year? Furthermore were Ocean Wilson to trade at less of a discount the discount on Hansa would tighten enriching the family significantly The easiest way to boost the wealth of the family is to realise value from Ocean Wilson or am I missing something?

[livingstone20] 12/11/2020 11:44

I don’t think their Investor Relations do them any favours and contribute to the massive discount to NAV. If they simply reported the Wilson, investment portfolio and total NAV each quarter then the discount would narrow. At the moment it is so complex that you have to build your own Excel. Whenever I raise this to their IR team I get no reply. Now that I am fully in I think I will up my efforts on this with IR, management team and advisers. I can’t understand why they make almost no effort to narrow the discount and avoid providing the key Nav data point. A regular investment trust provides Nav daily whereas they now tuck it away once a year. Some collective efforts on that point may help anyone invested!

[jane deer] 12/11/2020 10:18

If Wilson and Sons pays out a regular 54 cent dividend in the spring for FY20 (and its recent reinstatement of the full dividend 54 cents for FY2019 must be a sign of confidence), then presumably OCN will pay out another 70 cent dividend in June. If that were to happen, current shareholders will receive back $1.10 (40c in Dec plus 70c in June) or 12% of the current share price in the next 7 months.

[dozey3] 12/11/2020 09:49

What’s more it is a hedge against Sterling which should perhaps be a feature of any diversified portfolio pre Brexit.

[livingstone20] 12/11/2020 08:42

By my reading of quarterly this now yields 8 per cent, with NAV in excess of 13 pounds at 31/10 before vaccine surge. Either it goes up or you get paid a great yield to wait until it goes up.

[essentialinvestor] 11/11/2020 15:39

Bought 1,000 shares.

[livingstone20] 10/11/2020 22:38

Hi Puku, Quarterly results imminent. Looks like would be Thursday. Share price of their main Brazilian asset Wilson Sons has risen by 50 per cent + from 27 to 44 since last valuation stated in May. Currency has depreciated which offsets some of this but I still calculate approx 15 pound Nav. Interim August report didn’t include a Nav though. Fingers crossed that this week’s does!

[jbfnfn] 10/11/2020 16:41

The Brazilian Real is still close to all time lows against the dollar. Hence any assets priced in Reals (OCN and the large OCN holding in HAN) are going to be low. There has been a bit of an uptick in the Real since the US election, maybe the market is anticipating a US stimulus where the dollar might weaken, or maybe the Brazilian central bank is wasting it's foreign exchange in the FX market.

[essentialinvestor] 10/11/2020 16:10

Why has HAN been so week recently?.

[puku] 10/11/2020 16:01

Hi Livingstone - what Results ? Interims for June were out in August

[livingstone20] 09/11/2020 20:04

By my calculation the Net Asset Value has today gone over 15 pounds, thus the share price of only £6.40 is at a whopping 60%+ discount. With results due Wednesday and hopefully a confirmation of the 15 pound NAV, there must be a chance of a long overdue move up??! Plus still the potential of a port/s sale, Chinese interest and potential special dividend perhaps? Thoughts? It seems quite quiet on here!

[piedro] 28/10/2020 11:05

Good news ...

[aracaju] 09/8/2020 16:36

I have heard that the French shipping company CMA CGM and state-owned China Merchants are having talks with the Salomon family.