Mr. Pink's Picks: selected event-driven value investments Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: RockyBalboa who wrote (17906)	10/13/2003 5:43:58 AM
From: RockyBalboa	Read Replies (2) of 18998

I have found an interesting investment opportunity in Germany. WCM Bet.AG a real estate and investment company currently trading at some E 1.80. It is significantly indebted but has some interesting (and marketable assets). They elected in Mr. Vogel who has an uncanny record in turning around businesses (as recently evidenced by saving Mobilcom from bankruptcy) as new Chairman. WCM assets consist of around 50.000 flats as well as a 5.5% stake in Commerzbank. The value of this stake alone represents nearly the whole market capitalisation of WCM. So, conservative players can hedge some market risk by selling a portion or the total value of Commerzbank against a WCM position. Commerzbank had a huge runup too, so hedging is now even cheaper. The first test of WCMs feasibility will be at the end of October when a number of bank lines expires, most prominently for its affiliate IVG for which WCM has guaranteed. IVG itself is exchange traded and the value of the WCM stake (around E 520M) is a bit below the guarantee it issued. It is as bit a leveraged operation with some 2.4B debt and somewhere between 400 and 700M equity. But that makes it so compelling... But Mr Vogel has been brought in at the behest of the banks and this is a good sign that things turn to the better. The end result is that WCMs stakes in IVG and possibly commerzbank are being sold off and the company dismantled. In that case the value of all assets could be in the E250 range. Due to substantial tax loss carryforwards, no tax on gains on sales are due within the foreseeable future and in the Billion range.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next