A Multi-bagger if ever there was one!!! once this hits the papers, see it double.. treble...see announcement

it does scream "to good to be true"!!! but ......

What a bizarre and curious story. Sunday Telegraph peice is very revealing if true. Very unusual set of circumstances. Are the Brazilian government going to let all that money nip out of their economy? I guess an asset swap securitised on the cash would probably be the best way to 'transfer' the value out, as long as somebody underwrites it.

gonna be a scary ride this week.

the jury is out imo whether the Telegraph article will have buyers or sellers queuing up tomorrow.
im hoping for buyers.

does seem odd that cco "found" this huge wad of cash and didnt know it was there. on the other hand i found an old building society passbook the other week with just over 70 in it. took it to the woolwich who confirmed it was a dormant account ( over 6 years ) and after a bit of form filling i got the cash......WITH interest.

guess how much for 70 in 6 years?

13p less 2p tax.

glad to see that cco is doing rather better.

From the Telegraph:

A fortnight ago, Pearson - a jovial Yorkshireman who retired last year as a partner at Baker Tilly, the accountants - spelled out at Crown's annual meeting in Monaco just how undervalued the company's shares appear to be.


At the meeting he presented a balance sheet for Crown that claimed net assets in excess of 350m - including cash deposits of 360m. As Pearson pointed out, shares in the company, which closed on Friday at 68.5p, down from 875p in December 2003, appear to be a massive bargain.

"We have approximately 155m shares in issue, which equates to 225p per share," he said, adding that at the then price of 62.5p the company was worth just 97m, less than a third of the value of its cash deposits.

And now it's better value! Must be THE most Overlooked share at the moment but for how long???

Hi All,

Everyone is missing the other point, 25m in interest per annum !!!!

That alone is an EPS of 16p per share, if CCO had a respectable EPS of 20, the S.P would be 3.20, and looking at the NAV, that would be more realistic than 65p ....

Cheers,
PM

Paul - is the interest any more repatriable than the principal? Agree with the arithmetic, but it's got such a dodgy history. As Bosley said, if it looks to good to be true . . . .

sd

SD Hi,

The interest is acumulating now, and when the money is extracated from Brazil, the interest earned will come too.

We will se how 'good to be true' it is, when the money is exchanged for assets outside Brazil, and the price rises to somewhere near 2 or more.

I will wait this one out, rather than miss out, because a suspension and rerating are on the cards, if the price don't move when the money is out of Brazil.

Cheers,
PM

what do you mean by suspension on the cards,is this why people are selling to keep there money in tact and buy back in later when the news does arrive.

Once they get confirmation that they can withdraw the money, the shares would go through the roof and I think what Paul means is that the shares may get suspended as is often the case where the value of the co.is so highly effected by turn of events. The shares would then resume trading but at a much higher amount.

ive dumped mine......made 9.98 after expenses. had i waited another day id be sitting on a loss of 450. the old ticker cant handle this kind of share.

ateeq Hi,

Rob is correct, but there is also the very high probability, that if the price does not go through the roof, Crown Corp will ask for the shares to be suspended, and request a rerating, after which they will resume trading at a much higher value.

You can tell from the AGM statement, that the directors want the true value of the Brazil cash reflected in the S.P, and a rerating will do that, if the news does not :)

Cheers,
PM

as a matter of interest, suppose i took out a T10 tomorrow and the shares were subsequently suspended. where would i stand wrt settlement?

WHY ARE WE ALL THINKING ABOUT SUSPENSION,LETS HOPE EVERY THING IS CRYSTAL CLEAR WITHOUT THAT WITH A GOOD RNS.

LOL !

nm

robstuff - have followed your comments on other threads and noticed you were in on CCO so just had to look into it. I nearly jumped in at over 1 seeing the price rise quickly recently and glad I waited, have bought today as I believe there won't be much more profit taking, interestingly the drop has not been proportional to volume of sells compared to the rises seen earlier. Even if you factor in the fact that the cash is not as liquid as say in a British bank a/c, this is an investment co that invests in South America and the company is not going to leave it standing in cash forever, I understand the Brazilian govt is not opposed to the withdrawal to invest elsewhere anyway so the share price should not be low for ever. The management seem to me to be extraordinary negotiators and deal makers so it will be interesting to see what happens next. Either way, asset swaps or interest on cash deposit, the risk seems well worth it.

Hi iamole, I think you've timed it well, the mms reduce the price which after a steep rally, brings out the sellers and for a while it's a snowball effect but mms know they can raise the price and attract the buyers in the same way whilst there is still a lot of interest, and therefore they make a lot of money. It's just a game and you see it in every share, once they have accumulated a load of stock, up goes the price gain and if that coincides with an announement or some favourable press articles, there's a killing to be made, I am predicting the price to jump back above 1 within 3 weeks. I have already topped up although at higher price than you.

who are all the sellers, why do they bother? or have we been sold a pup? I don't think the directors put out the news of the deposit in order for them to bale out. (although i've had that at the back of my mind) It would be good to get an update to curb the selling.

Rob Hi,

I guess the company can't put out news until they have something worth putting out. I sent them a Brazillian company for them to look into for investment, but the way they will look into every possible investment, and do all the due dilligence, it could be a while before they swap the cash for assets (months rather than weeks or years !)

Sit tight, that's what I am doing, as the value is there, and it's a lot higher than what I paid for the stock :)

Cheers,
PM

Hi Rob

Not all sells .... Know of one buy @ 59p