Investment company Stellar Capital Partners (SCP) is trading at a discount of nearly 40% to its latest sum-of-the-parts (SOTP) valuation of 114c a share. The price has shifted up nicely in the past six months — but the gaping discount strongly suggests punters’ hopes of realising a large break-up value from an orderly dismantling of the SCP portfolio might be misplaced. Reading between the lines of its recently released half-year results, I suspect there is some longevity in the group despite the process of disposing of two large industrial investments. After the sale of Torre and unlisted Amecor, Stellar will be debt free and have some cash to burn. The significant minority shareholding in unlisted financial services group Prescient will now become a strategic focus, and there appears to also be some enthusiasm about "alternative financial service businesses". I wouldn’t get too excited about further forays into niche financial services — and hopefully none of these ventures requir...

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.