Welcome to the madhouse

I was going to kick off this morning’s diary by referring to a madhouse and base it on stocks like BooHoo (LON:BOO), FeverTree (LON:FEVR) etc .etc. Instead we get the general election results. I think people are forgetting that Corbyn’s manifesto was and remains based on non-existent money. These are the politics of the madhouse.


Anyway, London is up 100 points as I type and this is presumably due to the prospect of increased money printing to pay off HMG’s debt and of course the prospect of weaker sterling.

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Yesterday’s announcement from Molins (LON:MLIN) caused me to telephone the FD, David Cowen, and unless I am very mistaken he thinks MLIN is cheap. After all, there will be £20m cash left in the balance sheet and the packaging business will be intact. At 100p MLIN is capitalised at £20m; this is quite simply wrong. MLIN should stand at least 25p higher at 125p and, arguably, 150p.

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MLIN was not the only surprise development yesterday. At about 1.00 p.m. came an RNS from Caribbean Investment (LON:CIHL). In effect the payment by the Government of Belize of c. £20m to CIHL and based on the outcome of an extended court case is to be to a separate unquoted company, Midway Investments Limited and the rest of CIHL sails merrily along. Given that this residue is worth perhaps £40m it is odd that the entire shebang (which is cum the Midway dividend) is capitalised at 20p at £20m.


Of course the GOB have yet to pay up and the “shebang” remains operating in Belize and subject to a virulently left wing government in practice. Still, 20p looks very cheap and my guess is that 40p would be closer to the mark.