Buy @ $7.81
According to a news article which someone posted on VB forum, today is the last trading day where F&N is included as an Index stock (didn't check which Index). As such, it has been facing heavy sell-down by Index Fund Mgr over the past days.
I'd done a quick check yesterday that Cash = $5.14/share & NAV = $8.78. Net Cash (less debts) = $2.35 but the debts are not at the Company level ie. with the subsidiaries and likely non-recourse ie. F&N not liable. The cash is at the company level ie. high chance of some being distributed out as Special Dividend. With the sale of APB, main profit now comes from Properties, where PB <1 (discount to NAV) is common. What's scary is EPS = 3.5ct for Q1 which translates to a PE close to 60! Previous Year was 6.3ct which gives a lower PE closer to 30. But, will need to see the subsequent results.
Today was an interesting day. At 5pm, the low was $7.85, reached earlier at ~4pm and it'd slowly recovered to $8.09. My fingers got itchy when I saw the 5pm matching starting at $7.71.. before it finally matched at $7.81. Guess there were a lot of Index Funds doing their selling literally at the very last minute! I wonder if any will do their selling tomorrow…
For the record,
- Vol = 39,516,000
- Range $7.81 to $8.23
- Open $8.10
- Close $7.81, -39ct
- G.O. Price = $9.55 (xd $9.43)