WH Ireland (WHI)

[WickedLester]

Here's another Wealth Manager I bought into today which also has a Capital Markets business.

I've always been put off them in the past by their torrid performance but they seem to have turned the corner and are now profitable, hopefully fairly reliably so. The market cap is about £23m and the balance sheet is not too bad with net cash and net current assets of about £8m. They have made a number of fundraisings in the past as they have struggled but hopefully no more are needed.

What has really piqued my interest and the reason I have had a punt is a small article in the Mail.

https://www.thisismoney.co.uk/money/inv ... en-up.html

If it's more than a rumour and a takeover tussle for £50m really is on the cards then that is 100% upside in what should prove a relatively short period of time. If not I don't think the business is currently particularly over valued and I would hope for no more than about 20-30% downside, hopefully temporarily in what is a very difficult market at the moment.

Anyone have a view?

[WickedLester]

Well this hasn't been one of my better ideas, it probably serves me right for listening to the Daily Mail.

https://www.londonstockexchange.com/new ... g/16059860

The thing that really upsets me about this news is not that the company needs to raise more cash, but the price it is being raised at. I think that at 3p a share the whole business is being valued at about £1.5m. IMO this undervalues the company, even in this difficult market, by a factor of at least 10, maybe as much as 20.

Obviously Polygon have decided to screw all the rest of the shareholders in a bid to recover some of their losses.

The fact that all 3 of the independent non exec directors have resigned tells me something.

Anyway, hopefully no one took any notice of me on this one.