Monday, November 3, 2014

What you like a CEO of a portfolio company to say (and hope he's right)...

From the Zicom Group (ASX: ZGL) Chairman's Address to Shareholders:
I am pleased to announce that your Board will henceforth focus on enhancing shareholders’ value. At the end of the financial year just ended, the net asset value per share of the Group was S$0.417 cents and the net tangible asset value per share was S$0.348 cents. At current conversion rate they are approximately A$0.369 cents and A$0.308 cents respectively. The Group has been continuously profitable since 2006 and has proven its resilience in having successfully navigated through unprecedented global financial crises. The last transacted share price on Friday 31 October at A$0.21 therefore does not reflect the true intrinsic value of the Group.  
In pursuit of this objective your Board has commenced to seek opportunities to unlock value in some of its investments concurrently undertaking relevant corporate initiatives primarily to re-align the Group’s new directions so as to maximise value for shareholders. 
The stock is still hovering close to the same price as when my colleague at Boyles, Matt Miller, gave his Value Conferences Idea Presentation.

Disclosure: I am a portfolio manager at Boyles Asset Management, LLC ("Boyles") and the fund managed by Boyles owns shares of stock in Zicom Group Ltd.  We may in the future buy or sell shares in the fund and are under no obligation to update our activities. This is for information purposes only and is not a recommendation to buy or sell a security. Please do your own research before making an investment decision.