The Evil Diaries: Watchstone “surely a raving buy”

After many months of waiting for an RNS from Watchstone (WTG) (nee Quindell) that the American investments had run into trouble, they haven’t. Some think these investments are worth 250p per share. On top of that WTG boasts cash of 200p, retained warranty monies of 100p and realisations to come from the industrial hearing division, perhaps a further 100p. That adds up to 650p. Even if it is discounted by, say, 100p for safety’s sake, one arrives at 550p. This is in contrast to the current share price of 225p.

It also explains why the management incentivisation plan (RNS 21st March 2016), which kicks in at 550p and offers management 10% of the upside achieved from 550p onwards, was signed by the management. If all the foregoing comes to pass, below 300p WTG is surely a raving buy.