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.







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Carlsberg don't do Interims for other companies, but if they did, they would be like the interims crosby released today................:-)))
Alan

I'm no accountant and the numbers in financial reports mean almost nothing to me, but even I can see this company is undervalued and overdue a re-rating.
Its making a mint!!
Would love to see a good analysts take on these interims, cos I can only see growth, profit and a company whose share price doesn't even take its current position into account, never mind its future potential.
Alan

Nice jump today. I bought some shares at 68 p this morning and I'm planning on buying some more.

I've read the annual report for 2005 and their first q. interm 06, and my only worry has been their dependency on results from IB Daiwa's business. Although gas interests in the US is going worth a fortune in the future with all the possible unrest in oil / gas producing countries (But why is the company adress in Cayman Island?)

But it seems like they have some other nice projects in their pipeline (they say they have "a large deal pipeline") and assets under management is increasing nicely. This will be a good diversification and should help smooth profits.

Profit to shareholder US$ 70.3 and total number of shares 250,399,754 gives a EPS of 28 cents. A purchase price of about 74 p gives a PE of about 5 - for a 6 months period (I hope this is calculated correctly)

This all looks very nice and I'm looking forward to the next 3 months results. Unless I've misunderstood something, the value of is company is going to increase a lot over the coming year.

ej,
I never understood its fall from almost 1. As far as I can see, profits, NAV, funds under management, pipeline business are all up since then and things that were just good prospects at the time (such as big mouth bayou) now look like rock solid earners, yet the sp has fallen!!
When the markets do wake up to this, the sp will rise dramatically. The only question is, what is a fair sp? I estimate that if it were worth 1 then, the true value is closer to 125-130 now. Continued growth as forecast makes it a multi-bagger inside a year or two.
Very happy with my holding, just perplexed as to why the rush to buy hasn't happened!!
Alan

Today's free tip from UK-Analyst...

Buy Crosby Capital Partners

Says Zak Mir of Zaks-TA.com

Being a devout chartist I have to say that all I am really interested in is technical analysis. But I understand that many traders and investors like to keep at least an eye out for any fundamental events. Looking up the newswires on Crosby, the Asia focused merchant banking and asset management group, it is evident that there has been nothing significant going on since March. This means that there has been little to disrupt the charting picture since it was reported that Crosby confirmed its interest in Fuji Television's 12.7% stake in Japan's Livedoor.

What is evident from the daily chart since then is that the share price has fallen some 25%, and we are left wondering whether it is time to buy again? The reason for going long is that we have managed a double test of the bottom of the late 2004 ascending price channel at 68p. This combined with yesterday's key reversal day up would suggest that after an extended consolidation, a new leg higher could be on its way. The clincher for the buyers is the way that last month's support at 64.5p was well above old June 2005 resistance at 60p. This "gap" between old resistance and new support is one of the most bullish technical signals around and justifies bulls looking for a target up to the top of the 2 year price channel at 120p. Only a weekly close below 64.5p abandons the positive view.

Any comments anyone.

Mystified and disappointed. I think CSB could be a bit more communicative with its shareholders - the SP is looking absurdly undervalued.

Zak Mir is wrong again

I read somewhere it's price is being affected by it's stake in IBDaiwa-something has gone wrong there. don't know what as I don't hold but that's the reason for you to check out.

m343bhp

They were a bit more communicative yesterday, managing a few lines which tell us little.

Crosby Capital Partners Inc
25 September 2006

CROSBY CONFIRMS IB DAIWA SHAREHOLDING UNCHANGED

REITERATES COMMITMENT TO IB DAIWA

September 25, 2006 - Crosby Capital Partners Inc. ('Crosby') notes the recent
sharp decline in the share price of IB Daiwa, and wishes to confirm that its
shareholding in IB Daiwa is unchanged from the Interim Report of June 30 2006.
Crosby currently owns 102,425,000 shares, which represents 24.02%, of IB Daiwa's
issued share capital. Furthermore, Crosby remains committed to supporting IB
Daiwa in the continued transformation of its business, and in the development
and exploitation of its reserves and portfolio of exploration prospects.

Can't work out what's going on here. The news from IB Daiwa on the gas drilling programme has been regular and pretty encouraging for the last six months, yet the company's JASDAQ listed SP for the same period looks like a ski-slope!!
Does anyone out there have any solid info on this?

It must have something to do with the big fall in the price of natural gas, (if I rembember correctly IB Daiwa is mostly in gas drilling), which has fallen over 40% the last month, from $ 7.5 to $ 4.5 today. I've watched the large canadian gas producer Paramount (pou.tx) and that company has also lost a huge part of is SP the last month (about 28%). I've read that the gas - oil price ratio is suppose to be about 1 : 6 which means that natural gas is very much undervalued at the present, the ratio has increase a lot the last month. There is a lot of natural gas on storage right now, but I thing the sharp fall is also due to some large selling by hedge funds that have been burned by the fall in the price of natural gas.

I'm trying to calculate the value influence of IB Daiwa to Crosby Capital, to see if the fall in sp of IB Daiwa and Crosby is closely correlated or if Crosby has fallen to much.

Thanks, ejvind - at least this provides us with a logical reason for what's happening. Logical I can cope with.

From the FT - 21 Sept 2006: "Crosby Capital Partners, the Asia-focused merchant bank, dropped 16.7 per cent to 49p on rumours it may be about to take a write-down on the value of Japan-listed IB Daiwa, in which it has a 24 per cent stake. IB Daiwa has an interest in a gas development in Louisiana."

FWIW, a little thinking out loud:

Currently CSB's stake in IB Daiwa is worth JPY 77 per IB Daiwa share, or 35p per share, or 35.7 mil approx.

However at 12th Jan 2006, ID Daiwa was trading at 292 yen. At the end of June 2006, the price of IBD shares was still just above 200 Yen;the chart is not very clear, but the price looks to be around 220 Yen (100p), implying a decline of 65% or loss of value to CSB of 66.3 million. This is about 50% of the reported value of Total equity and liabilities of US$254.5 million.

Spread the loss of value of 66.3 mil over the shares in issue (243 million) and that's a loss of 27p per share. The SP has dropped more than this since the end of June; where it will end up is anyone's guess, and that applies to IBD's share price too, after its release of earnings revisions for the year ending March 2007, confirmed today by the president on the company website, precipitating a further 14% slide in IBD's share price.

Of course, there could be another explanation, i.e. that CSB is holding shares in Stanelco that they haven't told us about !! :o)

I've been in CSB since the 30p days and I think now represents very good value for money.
Going back over previous reports from CSB, there is much more to the company than IB Daiwa.
All IMHO and DYOR etc., but it looks a good bet at the moment.
Alan

Al, I'm inclined to agree that things are looking better value, but would want to do more homework first. It might be a good idea to wait for the next quartelies for some guidance.

IB Daiwa's website is very informative and should help provide some idea of where the bloodletting might end.

IB Daiwa English homepage

As I understand on IB Daiwa's web side the financial "problem" is mostly due to technical delays in production and the low gas price at the present. The resereves are intact. The gas prices probably stay low for some time due to the large amount in storage but production volume should get back on track.

I have some shares at the present and think the stock is cheap now, but I'll wait for the next quarter report before increasing my stake.

Maybe it would be a better play just to buy shares in IB Daiwa directly? (get 100% of the "come back")

How able is the japanese stock market to correctly evaluate oil / gas companies?

Wonder whats set a fire under these today?
Alan

Dunno but Pantheon Resources is up 16p, approx 12% and they are drilling at Plum Deep in which IB Daiwa also has a stake.