Good news on Tejoori – they are delisting and returning cash.
There is something of a hurdle to be reached as they need 75% of shareholders to vote in favour of delisting in order to get the cash back. Cash is worth about $0.63 a share – less delisting / liquidation costs.
Though the spread is quoted as $0.47-0.52 you can actually buy at 0.5 in reasonable size.
There is some risk involved – it is possible that shareholders (mostly through inertia/ complacency) won’t vote for the delisting. After that they are holding another vote which will then formally liquidate the company. This isn’t how I have observed this usually being done – and there is the risk that post delisting bad things could happen to your money. I suspect this explains the gap in the price between likely liquidation value and current price. I also think the unusual way of liquidating may be down to Sharia compliance – they need to keep out of interest bearing accounts….
Not voting is insane – if we dont get the 75% vote the share price will halve or worse so make sure you vote now….
I have picked more up and now it’s 19% of my portfolio. On a portfolio level I do have something of a problem – with TJI and RMA both having paid out cash by January 2018 I will have a cash position of 40% of the portfolio – far too high – so now more than ever I am in need of good ideas….
As ever thoughts / comments appreciated.