Capital & Counties: The Clue Is In The NAV

A thought to ponder: While one may remain cynical regarding the rumoured suitors of Capital & Counties, said to be a Middle East Sovereign Wealth Fund, US private equity, and a UK housebuilder – the detail does not matter, the strategic angle remains relatively straightforward. If only on a risk / reward basis.

capclogo

The rise in the shares after a little dance either side of 270p still leaves the stock some 50p below its NAV. Therefore one would assume that even if there is no M&A there is a value play here. Otherwise, even the meanest offer for this company – say below the 334p NAV level, at even 310p, would be a decent upside from current levels. Perhaps the recent shenanigans at Hispania will expedite the process?

capc

Disclaimer
Zakmir.com is a purely journalistic website – Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

 

Author: Zak Mir

Financial commentator, interviewer, technical analyst

Leave a Reply