I promised an occasional set of suggestions on undiscovered and undervalued ofex stocks. I said there were still a few astonishing bargains over there and in my view this one fits the bill admirably. (my first suggestion Millbrook is up after two new partnerships and a nice contract win.)

Before i go any further, if you do not like property stocks, look away now! Let's not have a debate on the delights or otherwise of a property crash. i think you as investors have your views and are pretty clued up on the arguments for and against, but suffice to say, if you think commercial property will tumble then this share is not for you.

The stock, then is GSC Property. I hold. GSC has a portfolio worth 43 million plus cash of just under 5 million, after a recent sale. Repayments are fixed over 25 years at around 6%, totalling about 37 million. So nav is over 10 million and the nav is 101p a share. The shares are trading at 55-60p (market cap 5.75 million, nearly covered by cash!) a 40%+ discount to nav and as i said in the headline are profitable.

So why else is this so attractive? It buys on the theme of covenant, rather than location. Among the properties they own are a banking hall in Essex and a drive through in Birmingham. 90% of their customers are top 350 UK companies and or government. They are due for a revaluation of their portfolio soon, (likely to be up if the market is any indicator) and rent reviews should add to profits. The nearest company I can find is Aim listed PHP which is trading at a 5-10% Premium to nav. That would put GSC on 110p a share. Even if you think a discount is more apt however a 10-15% discount would see the shares at 85-90p which i consider to be fair value for the short term.

Oh they even pay a dividend of over 1p a share.

Strong Buy.

SAF was tipped in Telegraph yesterday but I missed the article.

No I didn't see that but good news!

Small rise today on the back of a 2,500 Buy.
Results should be out soon?

Nice to have one stock that is at an all time high after the last few days elsewhere!! (Actually Mechan is as well and BLS is close!). Keeping an eye for results but might be a few weeks yet? Hope we get an upgrade on the portfolio at some stage.

A 700 buy lifts the Share price another 5%.
Don't you just love it when that happens?

Directors will have to sell a few more to meet demand soon.

Results late May.

Shame the AGM is so far from us both.

Hi 8Ball, I think there must be someone trying to buy a few behind the scenes, up another 2p on another 1000 shares this morning. Of course, Ofex ain't going to persuade anyone to sell at the current levels, and i reckon they know it!

Might they have an idea about the results?
Following todays trade I guess they must be out of stock?

Just guessing here 8ball, but 1.5 million should come off the amounts due, (annually, but remember these figures are just for a six month period) so even with break even and no portfolio upgrade that should mean an increase in nav.

Share price 72.5p :) :) :)

And so it will improve, year after year! Those of us already in, (or who join in soon,) are laughing!

Tempted to add another 1500 just to see what it does to the price.
Will ponder til Friday......

8Ball you have a p-m.

Would be nice to hope the people buying have good reason to be confident (can't see why they wouldn't have!). I gather from another poster elsewhere Winterfloods should be making a market in all ofex stocks in July.

Be very careful with these, Ofex thin volumes has clearly been over rating property companies on Aim, Oakdene was 130.5p yesterday on Ofex the more proffessional investors on AIM are valuing it at 108p below the placing price..you have been warned.


May well drop when new market makers come on board in June (expected) & shorting is an option.

anyone checked the options which may hve been given to executives/directors .as conversion of the options in a small company can severely erode the value of share and dividend values.
in small companies it is so important to examine and keep checking the option position!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

MPW, very good point there, thanks for pointing out another attraction of GSC. As a shareholder I am pleased to tell you there are none, zero, zilch options/warrants etc!! :) .

Totally agree with you though mpw777 they can be very debilitating for Ofex stocks in particular, and imho these are the Ofex stocks that will be most vulnerable to shorters when competitive mms arrive (beware - infact I'd say avoid - most shares that were originally Ruegg offerings in particular, they could get thumped by shorters, far too heavy a dilution in most cases imho, making them real vulnerable!).

Results due from GSC next week, so hoping we will see an ever increasing GSC nav. Indeed, if they were to award themselves a few options, could not blame them!
As for the competitive mm comment, not worried atall. Much more likely to benefit a stock like this at such a tasty discount to nav. :)

Anyone shorting a stock like this would get badly burnt imho. As i am in for the long term such shenanigans would be welcome opportunities to top up. :)

Suggest you keep an eye out for GSC results MPW, could persuade you to get in.

Incidentally, which as i think Third Eye knows, i tipped Oakdene elsewhere last summer at 48.5p (he was negative on that one then too, as he was on GSC at 45p more recently). Oakdene is up 130% since, so a bit of a correction today not really a problem! And I reckon GSC could overtake it in the next twelve months :) .

Thanks for message Hawick.

How refreshing it is invest in a company that treat shareholders so well.
Always quick to answer questions.

So impressed that I hope to increase my holding tomorrow.

If OFEX is not for you MPW check out SAF, large discount to net asset as here.
Not sure how the more professional investors value it, but I make it 50% discount to asset value.

Yep MPW could not put you off SAF either, indeed thanks to 8Ball I hold a few of them too. :).

I don't blame you btw 8ball for going in again for GSC, hard to resist at this level. My biggest ofex holding, and certainly one i feel 100% comfortable with.

Falling repayments (750,000 for the last six months) and an increasing portfolio valuation (though it may or may not come with results) together with a small profit hopefully, all should make this a more than worthwhile investment as nav rises!!

Wow I am impressed 8Ball! Was that you!! Up 9p anyway. Nice to see the stock heading for a more realistic rating anyway.Still at a nice discount to nav, despite the fact the shares have doubled since float. (Perhaps Third Eye should post here more often! ;) )

Glad I got in early today.
My extra 1000 cost me 80p before costs.

My average is now 70p

Could we see 1 after the results?

From today it's my only OFEX holding Wynnstay left OFEX, and moved to Aim today.

Looking forward to next weeks results.........

Interesting they failed to get you any stock Harry.

A few shares traded today, anyone able to get details of trades as I can only get the total volume.

8Ball looked like 2x1000 trades and then the odd number 1978 or similar? Was up 5p at 10am, then 9p afternoon. Was up 9p before the last trade was reported, though it may have already happened.

Looking forward to Third Eye's next visit to this thread,hope it is as persuasive to investors as his last one! (His comment that 40p was fair value still amuses us GSC holders.) :)

If the other two trades were buys, I wonder where the shares came from.
We may have had a directors sell today in order to fill the orders.
If not it will have to come soon.

The 10,000 shares sold by the Directors on 24th Mar must have all gone by now?

Hawick..Where did you get your trades data from?
I just tried counting up the trades since 24 mar from the chart on OFEX.com and my guess is 6,000 plus todays. (9,894)