The Evil Diaries: “A clear case of Grrrrrrrrrrrrr….”

I was startled by the Foxtons (FOXT) story of a £42m refund to clients through deemed taking of hidden commissions. I thought the thing would have been reflected in the share price by now. The truth is that it has not. Indeed, seemingly, the market does not care. Well, I think it ought to be. This affair will be reputationally really bad for Foxtons. In any event, they are going to have to pay up big time.

Mulberry (MUL) has reported pathetically bad results and outlook. At 900p it is around 8.5 times tangible net asset value, profits in prospect cannot possibly support the share price and the dividend is paid out of pitiful cash resources. It is a terrific short – or would be – if the market were rational. I should also add that it is very difficult to borrow stock. A clear case of Grrrrrrrrrrrrr….

Gate (GATE) was suspended pending an announcement that it will raise cash on a convertible loan or two. Even if the coupon is 10% (payable out of what earnings?) and the cash raised is £5m (say) who on earth wants to buy ordinaries valued at £100m as against tangible net asset value of £3m? In my water, I suspect Gate is not going to come back from suspension. Indeed I am surprised that it has been allowed to be quoted this long.

I bought 600,000 Polo (POL) at around 5.5p since net cash per share is 7.5p and the portfolio was valued by Polo just three months ago at 20p. Even if a more realistic valuation is 4p (I doubt if things are that grim) that still means the share price is half break up value. Surely, this is a buy.

However, Avesco (AVS)‘s results to 31st March were superb. I sold 30,000 at around 170p just to take some money off the table. But I should not have. Wiser investors should hold very tight.

Finally, The Debonair One drew my attention to the bull case for Greek equities. I am woefully ill-informed on how to do this economically. So I have missed out on the 8% rise this morning.