OneLogix is currently trading on a P/NAV of 0,75. To the value investor this would seem like an obvious buy. You're buying R1 in assets after deducting liabilities for 75c. But how do you know the share will appreciate closer to its true value? #JSEOLG
Value in these types of shares is normally realized through corporate activity. It could be a merger, spin-off or in the case of OneLogix - a delisting.
The board recently announced that the share could be delisted from the JSE for a cash offer of R3,30. A 8% premium to the current market price of R3,05. SENS: https://irhosted.profiledata.co.za/onelogix2/senspopup.aspx?id=415755
Sure, this is only a modest profit, but your holding period is only a few months. Combine this with the higher predictability of profits and these situations can produce decent annual returns. Which is especially useful in years that the general market is in decline.
Link to tweet: https://twitter.com/alex7frey/status/1515598464725487617?s=20&t=ufAwP37MmyOGUpRQCMc6EQ
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