I bought Daejan (LSE:DJAN) on 5th February at £52.90 per share. My expectation was that this property company would continue to increase net asset value over the next five years. I would hold during that time, while the share price discount to net asset value would fall from an exceptional level of 56% when I bought to a more normal 20% to 30%.
I was quite content to settle down to receiving a regular dividend of 2% of the purchase price while the company advanced and the share price moved up over a number of years.
What I didn’t know was that the Freshwater family had been planning for a weeks to buy the 20.5% of the shares they don’t already hold. Honest, I had no inside information.
So 16 days after my purchase the shares rocketed to just shy of the offer price of £80.50 and I sold at £79.41 after broker costs, a 50.1%.
In early February I was pretty confident that the enormous gap between NAV and share price would close, but can’t take any credit for the speed that it happened.
(Previous newsletters describe the rationale for investing in Daejan: 7th – 13th February)
Is it a good thing?
Net asset value is £120 per share and the offer p
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Prof. Glen Arnold
I'm a full-time investor running my portfolio from peaceful Leicestershire countryside. I also happen to be UK´s best selling investment book author and a Financial Times Best selling author.
Originally, I wrote all my ideas out in full on this website. Now that ADVFN publish them they are entitled to display the full version for six months – you can see them here. Thus can I only post the first few paragraphs here for anything younger than six months.
I write 2 to 3 newsletters per week - investing is about making the right decisions, not many decisions.