PICK OF THE MONTH: Brimstone
For patient and risk-averse investors, the share is worth accumulating at current levels
At first glance this could look an odd choice for Pick of the Month. Since releasing its interim results to end-June, the share price discount on empowerment company Brimstone Investment Corp’s intrinsic net asset value (NAV) seems to have narrowed. This would be based on the share price movements of its two biggest investments: fishing conglomerate Oceana and private hospitals specialist Life Health. The interim NAV was reflected as R17.69/share and R16.73/share on a fully diluted basis. This would mean the share price was offering a 21% discount on the intrinsic NAV and 16% on the fully diluted measure. At the time of the interim report in August, ordinary shares offered an attractive 24% discount on intrinsic NAV, and a 33% discount on the more tradable N-shares. IM, though, reckons Brimstone is worth a closer look now that it has confirmed its rumoured intention to spin out and list its fishing subsidiary, Sea Harvest, on the JSE.
The deal should be value enhancing on seve...
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