EDIT – 24/8/2016 RNS Today has basically said Bekon was sold for $0. This invalidates much of but not all of the below – still plenty of cash and land plots to be sold…
Tejoori has sold their holding in Bekon – this is in the books for $3.35m.
This is worth 12c per share at book. Since Monday, when I suspect smarter people than me picked up on the news the share is up about 12c – 16c depending on how you look at the spread….
Details are here. Its a 100% sale but we dont know the price.
That is book value. I wasn’t sure Bekon was worth anything – a 16.7% stake was bought in 2007,
They took a 12m impairment on the asset in 2012. I suspect the actual price will be more than what its in the books for reasons being that Eggerman are a trade acquirer in a similar business – they tend to pay a good price. On the other hand surely a trade at more than book would merit an RNS…
Unfortunately guess is all I can do as Tejoori have not deemed the sale of almost 20% of their tangible book worthy of an RNS! To give them a bit of an excuse this was in the books as available for sale – but it had been there several years!
Unfortunately I haven’t had much support for my earlier call to get together and call for an EGM to move this to a realisation vehicle (https://deepvalueinvestments.wordpress.com/2016/07/07/tejoori-anyone-interested-in-some-activism/). I do not want these guys reinvesting my money…
Now most of their balance sheet is cash and a couple Arjan land plots that still havent been sold.
Assuming Bekon was sold for $3.35m, they had $3.52m cash in the bank and wakala deposits and they already RNS’d a sale of land for $6.5m, This gets to $13.3m. Still under market cap of 12.7m usd.
Further to this they have a receivable worth $3.7 in the books – possibly more (https://deepvalueinvestments.wordpress.com/2016/05/04/tejoori-bit-more-hidden-value-found-could-still-be-a-4-bagger/) and land in the books for $9.5m but which if they are sold at a similar premium to next door plots could be worth $14m.
You should also remember last RNS stated:
The Board intends to use the net proceeds from the Disposal, which are estimated to be approximately US$6.4 million, to provide the Company with additional working capital and will provide funds for Tejoori to investigate further investment opportunities in line with its investing policy. In due course, the Company intends to also return a portion of the cash proceeds from the Disposal to Tejoori’s shareholders. Any future return of cash to Tejoori shareholders would be undertaken as a separate transaction to the Disposal. There is no guarantee at this stage that any return of cash to shareholders will take place and shareholders will be updated at the appropriate time.
Still potential to double from here. This is now 15% of my portfolio. Best idea I have ever had, highest percentage gain on a stock (from the low) and most money made. Still I may sell a bit at some point shortly- as the weight is getting punchy given the nature of the stock, particularly due to liquidity concerns…. In addition ALF may be a better opportunity and may now have more upside…
Hope you have all done well on this. I really should get round to setting up a paypal for donations…. Having said that if all my ideas were like TJI I wouldnt need to !