As considered last week, Caribbean (LON:CIHL) has turned from being a successful business with good prospects into a go go vehicle. Naturally, I wondered whether the new (Ashcroft) money was going in to shore up the balance sheet. But that was clearly most improbable since all shareholders could have been called for new money. Which of course did not occur.
So I reckoned that Lord Ashcroft reckoned that by subscribing £13m for new at 38p cash he would eventually be able to sell for a lot more. In the event and in pursuit of that very target CIHL yesterday announced the acquisition of Scotia Bank, also in Belize, for $35m cash. Lord Ashcroft is not wasting time.
Therefore, 43p offer is a compelling entry point. Do not forget that there is the possibility of a final dividend of perhaps 5p in a few weeks’ time.
I just love it when a stock regathers its poise. The last fortnight has seen De La Rue (LON:DLAR), which I have followed for twenty-five years, turn sharply up for the better and now it seems to me that Capita (LON:CPI) is going to do exactly the same. The fear has been that CPI’s debt would overwhelm it. But CPI has just announced two disposals, totalling about £600m cash, and is therefore off the danger list. The 100p target is emphasised and I have bought again this morning. I am feeling quite greedy.
Clear Leisure (LON:CLP) this morning reports a settlement of a legal action. It comes to more than the capitalisation of CLP itself. However, if one really wishes to salivate, CLP also advises that it has a claim against the Piedmont district for a startling E39m or, were this sum ever received, c. 5p per share – in contrast to the current 0.3p. I am afraid that cynicism persuades me that Italians never pay and that this 5p is pure fantasy. On the other hand, there might be as much as 1p per share and that would be quite exciting. I am up to the gills with CLP ordinaries and shall not buy more but, at current levels, I am certainly not selling. Particularly given my view that Francesco Gardin, the CEO, is a superior fellow.
Wirecard (ETR:WDI) has surprised me by not being suspended so far this week. I stress the SO FAR. There is still time to sell.
Finally, Ascot yielded £55,000 profit. There has been some luck – I cannot deny it. But there were some fairly obvious bets and I latched on to them large.