Bought these the other day on results day and was certainly taken aback by their fantastic growth over the period focussing in on Asia. Ive copied a report from Killik Brokers who sum up the potential far better than I ever could.

Take note of the last Paragraph.

CROSBY CAPITAL Final Results

We highlighted Crosby Capital last year as an interesting opportunity. Its rather complex business structure makes it difficult to analyse and its introduction to the AIM market through a reverse takeover of a cash shell meant that investors have gradually got to know the story over the past twelve months. Nevertheless, it is fair to say that from a placing price of 15p, the rise to 29p suggests the action is underway.

The group is headed by two well known investment bankers including Simon Fry who was former head of Nomura in structured finance alongside Guy Hands. The company was established to house their interests in handling transactions in the Asian region and late last year, the first fruits were delivered with the injection of its oil and gas agreement with Medco which provided them with a carried interest over disposal proceeds above a $120 million benchmark (the expectation is for a sum significantly higher which will provide Lodore Resources with a useful cash injection). Crosby, having placed down 70 million Lodore shares for 10 million gross (5 million net to Crosby), retains 214 million shares worth around 32 million or around 15p per share.

Partially reflecting this disposal, Crosby has reflected part of the profit as it announces for the year to December 31, 2004, it generated a profit of $34 million on $55 million of revenue. The company states that the actual profit to be recognized on the Lodore transaction will be $82 million or 42 million. The total value of Crosby at 29p (new high up 3p) is 60 million. Simon Fry alludes to a healthy pipeline of new merchant banking opportunities coming through and hopes to conclude some this year.

For investors, it appears one is paying a modest premium over current assets for potential significant further upside. ENDS.

DYOR

Speculative punt, that could be a winner.

cheers GF.







Powered by IST's

the volume is sound and has spiked over the last few weeks. it is a typlical Japanese small play and i assume is is being enormously hyped. to be 6 times the price (at its height yesterday) from the CSB deal without them actually having control (not until the end of the month) is wild.

i have confidence but i just urge the get rich quick punters to just be aware of the extreme volatility in CSB's underlying valuation.

rgds
PT

ps, any EKA news?

I have noticed that the 107m shares in IB that CSB can subscribe for are new shares. Is it possible that when they are issued, the price may fall as the company's valuation becomes diluted across a greater no. of shares?

EKA has had a few sellers of late. Probably a bit of profit taking. No news that I know of. AGM next week.

one would assume they are of course dilutive to existing shareholders but since CSB will take up the warrants as and when they choose to exercise it should not effect the price because they are fully paid and rank identically to existing stock. therefore the mkt cap increases in line with the new stock at the same price (maybe a small reduction because of the exercise level).

It does make sense, honest!

A down day, its just not on LOL.

cheers GF.

IB Daiwa closed at 147 yen. CSB stake worth 64 million. volatile yes, but hey its a fact at todays close!

Looking good at the moment PT.

cheers GF.

indeed it is but i trust you understand my caution!

Finished the day positive.

cheers GF.

IB Daiwa 176 yen...80 million profit if realised! remember though, HIGHLY volatile

Yes that now accounts for about 35p of the share price. I would buy the rest of the business at 25p, so I have topped up.

a no brainer but not a complete no brainer - back to 30 yen would be a bit bearish for CSB.

I am so midful of conglomorates (esentially CSB's diverse groups of investments class it as that) and have always been respectful of the sometimes substantial discount that they trade to the "whole". saying that, CSB tends to realise its returns so could be an exception to the rule and probably should trade at a premium!

i am in and running with it. keep an eye on IB Daiwa on a daily basis though!

133 yen close now (off 25%). a wild ride indeed....

no wonder they are off today

Yes CSB are definately off. It will be interesting to see if IB Daiwa maintains the downward movement.

closed at 180 again but was as high as 200 yen...

Three days at a fairly consistent level now.

Anyone got any knowledge on why the steep drop today for crosby?

I can't see the reason for it either. If you consider that before the IB Diawa deal the SP was around 39p. Since then 35m has been added onto the market cap. But with the IB share price having stabalised in the 180-185 Yen region. The market value of those options is around 82m.

I accept that the value of the IB assets is being discounted, but at 39p crosby was cheap and now it looks even cheaper.

LRS up 5% today on NO volume

Bit of a see saw ride with this one. Holding out for even more a lot more when we get rid of the summer.

cheers GF.