Welcome to the madhouse

1 mins. to read
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.


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.


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.

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