It is simply a matter of timing

Arrow (LON:ARW) is, at 400p per share, capitalised at £700 million. However, tnav is minus £100 million. This would not matter if earnings were spectacular. But they are not. They are of the order of 12p – which puts ARW on a fairly fruity rating.

The business comprises purchasing blocks of debt from, typically, banks and setting about effecting collections. The difficulty here is that the climate is tightening and, a few days ago, a similar business, Cabot, pulled its flotation. Unkind souls whisper that ARW has a long way to fall. It is simply a matter of timing.


*****

Caribbean Investment (LON:CIHL) doubled yesterday on an announcement that the Belizean government would have to pay up what is now a startling £35 million+, based on a claim that has been doing the Courts for five years and more. The problem was that the claim has already been shunted off into Midway Investments Limited and, it must be stressed, has not yet been paid.

I missed the opportunity to sell CIHL at the top but am not entirely regretful since tnav is still 35p per share (capitalsiing CIHL at c. £35 million) and it is hard to see why CIHL should not make money in Belize. Yet again, patience is required.

*****

Accrol’s (LON:ACRL) decline is very strange in that although an £18 million refinancing at 50p has been arranged it is still not publicly explained as to what caused the black hole to open up so suddenly. The IC’s Simon Thompson this morning gives up on this stock. As a result, it stands at 39p. But I think that this is too gloomy a view. After all, when Zeus raised the £18 million one can be certain that those subscribing for new would have been very cautious. So, on balance, I think ACRL is a buy.