Evil Diaries: Easy Safe Money

As readers know I am quite prepared to take a gamble. But Logistics Development Group (LDG) it most certainly does not appear a gamble to me. Indeed, I cannot recall a safer looking investment in many years.

LDG today announce that they are due to receive cash of roughly £15m in a few weeks’ time on the sale of Caretech, taking net tangible assets (all cash with no debt) up to £120m+.

The reason for the anomaly that is now highlighted is that LDG at the offer price of 13.5p, capitalised at £95m, does not interest investors who are obsessed with the search for much larger percentage gains which, as matters stand, are not foreseen at LDG.

But I stress the “as matters stand” since a deal may emerge which appeals to the directors of LDG. Of course, absent a deal, LDG can be liquidated and the risk free pay out will still be very attractive.

This is surely one for widows and orphans and of course those who would rather not lend their cash to Natwest at 2% p.a..