ANTHONY CLARK: Appealing, for patient investors
I have long believed that Brimstone wants Sea Harvest to be a wide-ranging business
Western Cape empowerment investment company Brimstone has emerged as one of the rare BEE investment stocks that has been unsullied by drama or scandal.It has consistently and studiously invested its sizable pot of investors’ money in selective, quality investments that are transparent and unstructured. Yet with a market cap of R2bn Brimstone continues to hide its light under a bushel.But that light is slowly beginning to shine very brightly.Brimstone built a portfolio value of more than R4bn with a basket of assets that included health care, foods, fishing, media, financial services and recent investments in tertiary education and property. However, with two classes of shares — "N" and "Ord’ shares — both fairly illiquid, Brimstone, like many other more salubrious empowered investment companies, trades at a high discount to NAV. That discount is now about 44% of intrinsic value.It is an opportunity for the patient, as management is fully aware that this discount will attract activis...
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