Nothing on here is investment advice. Do your own due dilligence.
New special situation
I was looking for new ideas with a friend the other day, when he stumbled over a really intriguing special situation. However, time is of critical importance in this case. As I was short on cash, I slightly trimmed my positions in Supreme plc, Sygnity and sold Flexion as well as PSI. Due to the very limited liquidity in this stock I will not disclose it for now.
itim Group
Also added some more shares of itim Group - remains to be a dirt-cheap UK retail software company.
EROAD equity raise
This has really been quite something. Management issuing new shares at a 50% discount (70 cents), in sum diluting existing shareholders by ~50%. Without the actual need to raise cash and after recently receiving a $1.30 takeover bid which they rejected as materially undervaluing the company.
This management is setting an example in how to destroy shareholder value. Shares are now trading even below 70 cents making the rights issued worthless. Looks like management sees the company as something like a self-service store and an opportunity to be in a position of influence. No regard for shareholders at all.
Datalab delisting
Datalab acquirer’s group has managed to get about 90% of the shares. Consequently, the company will be delisted soon. They might also try to do a squeeze out. I have decided to stay invested. The valuation is simply too compelling for this jewel to sell out at this price.
Dividends
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Current portfolio overview:
SUTL Enterprise 18,0%
Supreme plc 14,1%
Sygnity SA 12,2%
Neurosoft Software Production 9,0%
RCS MediaGroup 7,7%
NZME 6,7%
Datalab Tehnologije 6,0%
itim Group plc 5,3%
Bravura Solutions 5,2%
CHAPTERS Group 4,5%
4Mass SA 2,9%
Onlineformapro SA 2,7%
iEnergizer (delisted) 1,7%
(undisclosed) 1,5%
EROAD 1,3%
MobilityOne 1,3%