MS International (LSE:MSI) has such a strong balance sheet - including £14m of cash and no debt - that it qualifies for my net current asset value portfolio as well as the Warren Buffett portfolio. This works if I'm prepared to overlook the fact that its collection of freehold property is allocated not to the current asset part of the balance sheet, but classified as non-current assets. I'm also ignoring the pension deficit, which is probably pushing my luck, but then, I'm not actually buying this share as a NCAV investment but as a Buffett-style value investment. Market capitalisation is currently 16.5m shares x 122p = £20.1m (it has fallen since I bought at 129.2p).
Net current asset value £m Half year Oct 2020 Yearend April 2020 April 2019 April 2018 Cash 14.0 16.1 22.9 15.9 Inventories 17.6 15.9 12.6 11.7 Receivables 7.0 4.6 7.0 14.6 Other current assets 3.0 2.5 1.8 1.2 Total current assets 41.5 39.1 44.4 43.4 Minus current liabilities -28.2 -25.2 -26.3 -28.7 Minus non-current liabilities (excl pension deficit & leases) -1.6 -1.6 -1.6 -1.6 Current assets minus all liabilities except pension deficit 11.7 12.3 16.5 13.1 Minus one-third of inventories -5.9 -5.3 -4.2 -3.9 Minus one-fifth of receivables -1.4 -0.9 -1.4 -2.9 Ben Graham NCAV (if we can ignore pension deficit) 4.4 6.1 10.9 6.3 Freehold property 17.7 17.7 17.0 17.2 NCAV plus property 22.1 23.8 27.9 23.5Can we ignore the pension deficit? Not really, at £9.1m. But that might be whittled away in a high-bond-yield-greater-inflation environment. The pension scheme ceased being a defined benefit one in 1997 and is now a defined contribution scheme. The deficit could be wiped out should discount rate rise by two percentage points. The cash ………………To read more subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1
0 Comments
Leave a Reply. |
Glen ArnoldI'm a full-time investor running my portfolio. I invest other people's money into the same shares I hold under the Managed Portfolio Service at Henry Spain. Each of my client's individual accounts is invested in roughly the same proportions as my "Model Portfolio" for which we charge 1.2% + VAT per year. If you would like to join us contact Jackie.Tran@henryspain.co.uk investing is about making the right decisions, not many decisions.
Categories
All
Archives
May 2023
|