Full with cash, what’s next?
Fondul’s Q2 NAVPS arrived at 2.41 RON/share, while its July’s NAVPS stood at
2.378 RON/share (-1.5% m-o-m), out of that 1.85 RON/share or 78% of the fund is cash.
Huge amount of that cash (1.7225 RON / share) will be distributed as dividend on 7th
September, implying a 89% dividend yield.
Interestingly, theoretical ex-dividend price should be 0.22 RON / share implying a 66%
share price discount vs. the 5yr avg. of 30%. What is more, after the large DPS Fondul
would have still ca. 0.13 RON/share cash in its fund. If we exclude that from the theoretical
market cap, we end up with a 0.09 RON/share as a market implied fair value for the 0.53
RON / share reported NAVPS excluding all cash translating into a discount of 84%. Last
but not least, dividend potential of the remaining portfolio is 0.026 RON / share (ca. RON
135m – please see our chart below) so investors could receive a 28% dividend yield…
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.