Recent events at Sabvest suggest patient and value-inclined investors should take a look at relatively obscure investment counter Marshall Monteagle (MMP). MMP and Sabvest share a number of attributes: both have a meaningful global presence; trade at wide discounts to the intrinsic value of a portfolio of mostly unlisted investments; are very conservative when it comes to valuing underlying investments; and pride themselves on dividend payments. On the negative side, it is difficult to source large parcels of shares in either firm because of a limited free float in the issued shares. To their further detriment, both are poor communicators and investors will be frustrated by divisional reporting and operating information on key subsidiaries. Early this year, Sabvest announced a value-unlocking transaction that placed an acquisition value on its largest investment, global textile specialist SA Bias Industries, that was far larger than the value in the last set of audited accounts. Tho...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.