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29 Aug 2008
Bought Titon Holdings at 33p
I bought Titon Holdings (TON) today. They are a leading UK supplier of Ventilation Systems and Window Hardware.
Notable features were low debt, with current assets (9M) enough to pay of all liabilities (2.7M), leaving 6.3M and a current market cap of 3.1M. So you could buy the whole company, close it down and take the cash in the bank (almost 2M), sell all the stock and collect receivables and make a profit.
The share price has floated around 100p for the last decade, but since the credit crunch and related housing slowdown their share price has collapsed to around 30p. The only reason I can see for this looking at the company reports is that profits halved in the last year and general market sentiment against the housing related sectors.
The plan is to sit back and wait for the cycle to turn and/or management to make the required changes and sell out above 60p. If that hasn't happened in 5 years I'll sell up and move on.
The details were:
Titon Holdings bought at 33p, market cap 3.1M, PB 0.3
Notable features were low debt, with current assets (9M) enough to pay of all liabilities (2.7M), leaving 6.3M and a current market cap of 3.1M. So you could buy the whole company, close it down and take the cash in the bank (almost 2M), sell all the stock and collect receivables and make a profit.
The share price has floated around 100p for the last decade, but since the credit crunch and related housing slowdown their share price has collapsed to around 30p. The only reason I can see for this looking at the company reports is that profits halved in the last year and general market sentiment against the housing related sectors.
The plan is to sit back and wait for the cycle to turn and/or management to make the required changes and sell out above 60p. If that hasn't happened in 5 years I'll sell up and move on.
The details were:
Titon Holdings bought at 33p, market cap 3.1M, PB 0.3
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Bought
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