Sneak­ily snapped up

Finweek English Edition - - INVESTMENT - MARC ASH­TON

EAR­LIER THIS WEEK it was an­nounced that Re­gard­ing Cap­i­tal Man­age­ment had in­creased its stake in this fi­nan­cial ser­vices player to 22.5%. Cadiz has had some­thing of a rocky 2012 and the share price has taken a ham­mer­ing – at one point it was trad­ing at R2.80, now it is f loat­ing be­neath R1.50 and the old ques­tion about whether Cadiz should be listed is now re-sur­fac­ing. It be­comes im­por­tant to take a look at the tan­gi­ble net as­set value on the books at the moment (R1.80) and the net as­set value of R2.88, both of which are sig­nif­i­cantly higher than where the share is cur­rently trad­ing. In Septem­ber, Ray Cadiz put R729 000 of his own money down buy­ing 442 000 shares at R1.65 each. There’s enough to sug­gest that the savvy in­vestor is well cov­ered if he buys at be­low the R1.50 mark. A de-list­ing may ul­ti­mately be on the cards, but in­vestors def­i­nitely do have some pro­tec­tion with the share trad­ing at less than the sum of its as­sets.

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