Interesting story, do you have more details? What is NAV, is it compelling? How do peers trade? Why was it spun off.
Seems like new investment ideas have gone from full blown ideas with a thesis and facts to "here's some random ticker with eight sentences, give me your notes."
Not trying to be rude. I'm always in the market for new ideas, but I have no idea why I should look at this.
hahaha... fair enough.... Stock was spun off because the parent company didn't believe that they were getting credit for their shipping assets from South African investors. Thus, they wanted to split out the shipping assets and move them to an exchange that had more knowledgable shipping analysts...
As GND Finance Director, Andrew Waller noted, the shipping business had a balance sheet value of R20 per GND share but GND was trading at R11 which suggested that something was wrong. He also noted that "We could easily have sold it (shipping) to someone, but we don't think selling shipping for $320m (listing valuation of $16.82 per GRIN share) is a very clever idea. We would rather our shareholders hold that share."
So management set the listing value at $16.82 per share and thought that there would be greater value for shareholders holding the share instead of just selling the company and distributing the proceeds. Based on my own analysis with Clarkson's data and some changes in the balance sheet, I think current NAV is >$14. Most shipping companies trade near NAV unless there is some issue (corporate governance, excessive leverage etc). GRIN has a solid balance sheet and no corp gov concerns.
Furthermore, I believe that dry bulk market is already tightening and the MR tanker market should tighten next year so NAV could increase as ship values increase. The company believes this as well and noted in the pre-listing statement "that dry bulk (upturn) has already started to happen and that tankers may move in 2019." As rates increase, GRIN should also generate significant EBITDA.
Hope that helps. Happy to answer specific questions.
