Monday 22 April 2013

Guinness Peat Group PLC (ASX: GPG)

The last post on GPG can be found here

Since then, there have been a few more developments: 
  • More shares bought back
  • Further corporate transactions
  • Update on the pensions

Excluding Coats I have updated the estimated NTA ex Coats (to the best of my ability):


GPG released a slightly vague and worrying statement regarding pensions (11/4/13): 


So if my numbers are right, the NTA ex Coats has actually dropped a little bit, which I think is due to the buy-back program: buying the stock at 48c when the NTA ex Coats is less will all things being equal drive down the NTA. That's not necessarily a bad thing: competent management buying stock sends a signal as to what the stock might be worth. 

The big factor is what Coats might be worth. I haven't updated my figures on Coats since the last review. That's on my to-do list. 

GPG was then 48c and has now drifted lower to 45c.

I need to do more work on this one. While it is potentially a good trade, I'm not yet convinced I understand the risks enough. 

Kristian 

Disclosure: no position in GPG

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