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So today the value of the stake in Wilson Sons is 12.60 pounds per OCN share . So a sizeable discount without the OWIL part.
I am slowly accumulating and have a holding that is larger than some of the directors .
With the drop in the value of the pound and the investment portfolio denominated in US$ combined with a slight increase in the value of Wilson Sons , my calculation of the NAV per share is now 19.83 pounds . I could not resist buying again --even if LSE marks it as a sell at 8.40.
Yep, that's about the size of it, Vestry - the investment arm is in the price for nothing, reflecting the conservative (some might say 'sleepy') management approach here but the port ops. are doing reasonably well in difficult circumstances right now.
This share is hardly followed at all with no selling to speak of - so 'cheap as chips'. I like the potential here, though, which might be realised at some point, so content to hold such an undervalued asset in todays expensive mkts, fwiw, if that helps but DYOR, as always - sasa.
Market cap of Wilson Brothers is 4B Brazilian real. OCN stake is therefore 383 million pounds
Investment portfolio may have decreased from June 2022
My calculation is that the value of the two together is 18.35 pounds per share and I have just bought at 8.35 per share
Yet the price still is dropping --what am i missing ? . Should there be an RNS as someone is offloading a lot and I am the buyer of a few
The investment management business let the side down again and some rationalisation here looks overdue to put it mildly.
However, the port / shipping activities of the combined group held up reasonably well in the circumstances, given the difficult economic backdrop making for the mediocre outcome overall, imv.
If the continuing drag of the securities management side of the group could be addressed to improve their contribution to group profits (fewer holdings / better management expertise, etc.,) the outlook would be much enhanced, with the sp reflecting that, I'm sure...
As it is, the shares remain rather 'stranded', despite their overt cheapness on the aggregate asset front, still affording a 50% discount on that with the divd maintained...
More could be achieved if management took a proactive interest in resolving their 'weak link' as things stand, to get the sp up to nearer their true worth as they once were, as I say.
Just my take, fwiw - sasa.
If anybody's on here to be reminded? - sasa.
their 'hedge Fund' portfolio will be doing much better in these 'bear mkt' conditions as it should do - sasa.
Agreed, BTS - a 'steady Eddie' in these turbulent mkt conditions has its own appeal, given the deep discount on their twin assets and a running yield of some 5.75% - unusual value on offer here, imv - sasa.
Yes, I bought shares after reading the article. It's not very often that there's such a huge disconnect between market cap and proven, established revenue. OCN is never going to be racy - it's not going to crash either.
In last weeks issue of 'Money Week' magazine (page 30) if anyone's interested? - sasa.
is that "sale" or "sail"??? Bit of a Freudian slip there....
Fond memories. But the climb back then was rapid and perhaps could now be repeated as no real rise for a few years but the investment portfolio has done well. Now that the underlying business is looking stronger and value is sought by the market this ship may sale ………here’s hoping.
You are going back a long way.
They were in the 60's 19 years ago.
Could not resist the value on offer here and so have bought. 5% DY. Enormous discount to NAV, rising profit, rising value of investment portfolio and rencent director purchase. Results due in a few weeks should make this rise. Great long term. I recall years ago they were going for 60p.
left it too long to get back in. the value was clear and obvious.
Thanks for that spot. I completely agree. The top funds/trusts/equities over next 5 years are unlikely to be those at top today. Those out of favour may well be top performers of next 5 years as Brazil recession ends, exchange rate trend reverses, discount narrows, transformational opportunities realise for the assets, yield resumes at great rate etc etc.
There must be plenty of niche smaller company, emerging markets, special situations, high income funds that could tuck a few of these away at 7 per cent yield with very little downside from a ‘free’ entry point!!
From today's Hana Interims:
"Undoubtedly the exposure to Brazil has weighed heavily on the Fund in recent years, but with Wilson Sons now accounting for under 10% of NAV we view this as unwarranted in light of the quality of the assets held within the other silos. As noted before the current discount, at 35.5% and 45.8% if we include the discount at Oceans Wilson Holdings looks distinctly unjustified and Wilson Sons is arguably 'in for free'! Ultimately whilst Brazil is highly cyclical we would see the holding in Wilson Sons as providing additional leverage to the Fund as the country exits a multi-year recession and the challenges of Covid-19 start to recede into the background."
- in for free, I have to say I dont disagree. Brazil is a cyclical play, but having any asset that's undervalued, or free, is the best place to be. I just takes time and a bit of luck!
You have to wonder why it suits Hansa/OCN for the share price to be held down when the OCN NAV has moved up so significantly in the last 6 months.Once the persistent seller is cleared out ( Dynamo taken some ) no obvious reason why the share should not head back towards 4 figures and calm those who have seen serious loss of value in the last year.Simples.
" It all just looks fairly sleepy"....there was me thinking that was one of it's great attractions.
I have and that is another interesting angle. Hansa as an investment trust itself sits on a 40% discount, with 20% of its holding in Ocean Wilson which sits on a 50% discount to NAV. Whilst their controlling interests limit action, there must be some mechanisms available that could reduce OCN discount, drive Hansa NAV then in turn also start to reduce HAN discount. It all just looks fairly sleepy yet with a bit of attention could drive a really positive cycle in both OCN and HAN.
Have you looked at the shareholder register and compared the major holder names with those who run Hansa?
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!
I make the NAV about £13 using last nights close for WSON and the end October valuation for the funds. I too have been a buyer recently and totally concur with your comments regarding the lack of clarity of the underlying NAV in the quarterly statements. I think that we might have to wait a good while for any underlying Corporate Action but as you correctly point out we are obtaining a very satisfactory yield in the meantime. Two further points: it is worth listening to the Hansa Trust webcast which they put up in September instead of the real AGM ( especially William Salomon re Brazil / Ocean Wilsons), and I am convinced that there has been a committed institutional seller (Standard Life?) over the past 3/4 months who was still feeding the market makers today. Accordingly they were able to accommodate some impressive buy side clips without really moving the price in a counter which has a pretty limited free float.
Share trade data seems to show 83 trades for today with 4 sells and 79 buys?! Encouraging that people are starting to spot this which should keep squeezing it upwards.
Thanks for views. This morning shows now 8% yield, even without specials if they sell port/s or improvement when exchange rate trend finally reverses which it must eventually from all time low.
With 50% + discount confirmed pre vaccine this looks a good contrarian entry point.
With a port sale, improving exchange rate, reducing discount and recovering economy this could at some point start to move, and if it doesn’t 8% yield whilst waiting is pretty decent.
I don’t think their investor relations does them any favours though. The NAV is not easy to calculate and not very frequently presented simply.
The discount would surely narrow considerably if they just stated the Nav of Wilson and investment portfolio more frequently and prominently. Investment trusts do this every day yet they only issue full detail once a year, buried in report. It used to be headline in all their quarterly releases.