With a weaker dollar and good news flow from Hib P and now GCM should trade toward 8p this year regardless of the rest of the interests they have. Can't stay at 4p long with NAV pushing 15p - Nice opportunity
The higher this goes, the more chance the Company will have of pulling off a deep discount rights issue to shore up it's deteriorating finances - Had a good look but concluded there is little equity value left -
So 20.1m shares outstanding
£4m cash in the last report
£6.5m LS Reit Value
Just received £14.5m from sale of WGP
Possibly a further £7.2m with 5 years contingent on business remaining firm.
Will receive £1.6m investment into flying nodes for 20% stake
So in conclusing £1.35ish liquid 36p contingent and 28p early stage business value.
and the price is 99p to buy. A Buffett cigar butt investment in a market where there are so few like it.
Risk is management now squander the assets - but unlikely when CEO has skin in the game.
Margin of safety if Equity market goes down.