What appears to have attracted 1607 Capital Partners, LLC, is not just the existing 20%+ discount to stated NAV, but also the considerable upside potential in several of the companies in which Crystal Amber is invested.
A capable, world class, management team who are well placed to emerge as one of the winners in the engineering sector. Committed to strong R&D aimed at delivering future success. Several gems in the portfolio of businesses, which will likely be sold at hansome profits to generate funds to pay down the debts.
USA annual death rate, ex Covid-19, is c. 2,400,000. UK and other Western European countries experience is increasingly pointing towards Covid-19 having little effect on annual excess death rates (the vast majority of those who died would likely have died from other causes within 12 months). Whilst Covid-19 is deeply unwelcome, it's medium and long-term effect on mortality rates is modest.
Quite apart from all the positive news on existing products and services, the following caught my eye: "The Group is also in the advanced stages of development of unique solutions that are expected to be commercially released in September 2020 in anticipation of a second wave of several respiratory pathogens, particularly flu and coronavirus." I'm not sure how far the sp can go in the next six months, other than well above 100p.
Please don't feel sorry for this investor. Delighted we got out of Costa at high price and now looking forward to us gaining appreciable market share in both UK and Germanyas consumers respond to strong brand, impressive marketing and great budget accomodation. Travel Lodge are on the ropes with some owners of their hotels threatening legal action to recover unpaid rents. The small, mainly family-owned, hotels have limited firepower.
Today's disclosure of their share holding led me to the following in their Q1 letter to investors: "Whitbread plc, a leading UK hotel company, owns Premier Inn as well as Beefeater, Brewers Fayre, Table Table and Bar+Block. It currently has approximately 800 hotels across the UK and has opportunities to expand into Germany. Whitbread has a great history of capital allocation and a strong balance sheet with virtually no debt. COVID-19 is negatively impacting its business as most hotels in the UK have temporarily shut down; however, its strong balance sheet will help it endure the current crisis, and Whitbread will continue to grow once the economy is back to normal."