Evil Knievil: Watchstone still a buy

I have asked around and it is impossible – for me at any rate – to find anybody who can explain why Manx Financial (LON:MFX) is so cheap at 9p offer. It’s only capitalised here at c. £13m with full asset cover and on a current PE of, say, 4 and dropping. The chairman is in charge here.

This morning Watchstone (LON:WTG) announced a disposal which yet further backs up the balance sheet with hard cash. Some may regard this as bullish – and it is. But the main bull case swings round Slater and Gordon ultimately failing in its High Court capers. Dearer than it was it is still a buy at 105p.