Simon Shares

• Another week, another vaccine. This time from Moderna and also using the Messenger RNA as does the Pfizer / BioNTech vaccine.
• Stor-Age* (JSE code: SSS) results very solid.
• Wilson Bayly Holmes (JSE code: WBO) results not great as Australia hurts, again.
• Raubex (JSE code: RBX) announces an R2.87billion contract win from Sanral.
• Strong Spar (JSE code: SPP) results.
• Boeing 737 MAX 8 returns to skies as FAA lifts grounding order.
• Brait (JSE code: BAT) net asset value 771c (based on 9x EV/EBITDA), share price 388c.

 

[caption id="attachment_24160" align="aligncenter" width="888"] Brait monthly chart[/caption]

* I hold ungeared positions.

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Owning unlisted shares

In the last few years, we've seen a bunch of stocks being delisted from the JSE and in pretty much all cases existing shareholders get paid out and no longer hold the stock.

Anchor (JSE code; ACG) are now proposing a delisting at 425c, but with an option to remain invested in an unlisted Anchor.

I have never held an unlisted share outside of companies I have founded or worked for a few simple reasons;

• No JSE oversight
• Lack of communications to minority shareholders
• Majority shareholders acting as if it is their private company
• Zero liquidity to buy and sell
• Zero price discovery
• In short, being screwed over.

That said Anchor will very much still be in the public eye and this is not usually the case when a stock delists. That will help act as a guard rail (not that they need it) so maybe it will be fairer to minority shareholders.

Certainly, I think the 425c offering is very cheeky and I still don't want to hold unlisted stocks, for many this time may be the exception.

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