IC Tip8 Nov 2012 12:59
Simon Thompson, Investors Chronicle, 1.11.12 - Tip recommendation:
It's not often you come across an investment offering a rock solid 25 per cent potential capital return over the next 15 months, and arguably far more, where the downside risk is virtually non-existent. It’s even rarer still to be given a second chance to invest in such a situation, but that's the enticing opportunity being offered by Spark Ventures (SPK), the Aim-traded investment company focused on technology and new media.
... So not only are management's and shareholders' interests aligned but, with the portfolio performing well and disposals surpassing expectations, a further distribution to shareholders of 14.25p per share, or £58.4m, looks a realistic, if not a conservative possibility over the next 15 months. That's after factoring in wind-up costs, management incentives and property liabilities. Needless to say I rate Spark Ventures' shares, at 11.25p, a medium-term value buy.