Just put on a very small (2.5% portfolio weight) position in Fox Marble (bought at 9.67p). This isn’t my usual cup of tea but I have a feeling it could do very well. I also think it could go to zero so I am being very cautious.
This is a Kosovan Marble producer. They have quarries with access to 300m cubic meters of marble. They are currently trading at a market cap of £18.5m. They have had lots of issues getting their factory up and running. Some equipment was destroyed in a fire and they have consistently over promised and under delivered…. I think soon the worst of this will be behind them.
I think they can turn it round as they are achieving very strong sales growth – up from 110k 6m ending June 2015 to 262k 6m ending 2016. The problems they appear to have encountered are not insurmountable and I am not too concerned. They seem to be achieving orders / sales. They have net assets of £10m of which 1.3m is net cash. The auditor is PWC. There is no one dominant shareholder. Continue reading