Time to look at the balance sheet. I bought into Titon at 37.9p largely because its net current asset value was significantly more than its MCap and its qualitative indicators were OK. Let’s see if the rolling-in of profits has boosted the BS sufficiently, so that NCAV is still greater than MCap., even though the share price is now 67p. Here are the September 2014 numbers:
Market Capitalisation = 10.75m shares x 67p = £7.2m Inventory £3.479m Receivables £4.589m Cash £2.149m Payables -£3.732m Deferred tax -£0.162m Non-current liabilities -£0.020m Crude NCAV £6.303m Less non-controlling interest -£0.682m NCAV £5.621m However to build in a margin of safety we should not take at face value the inventory or receivables. I’ll knock 33% off inventory (£1.159m) and 20% off receivables (£0.918m). thus NCAV is reduced to £3.544m. But, I think that there is more BS value than this because the company owns over £2m of property in the UK, including a large factory in Haverhill, Suffolk (please tells us if you know more about this, e.g. has it been valued recently?). Thus we could add £2m to NCAV, to give us £5.544m, or 51.6p per share. Dangers And there are still considerable risks with this company:
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