Author Topic: Fairfax Africa  (Read 12637 times)

petec

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Re: Fairfax Africa
« Reply #40 on: April 16, 2020, 01:18:15 AM »
Notable that just cash and treasuries here, less all liabilities (there are virtually none), is about $2.30 per share.

At $2.90 you're paying 60c for some genuinely attractive assets in UBN, Nova Pioneer, ABC Botswana, maybe bits of CIG and AFGRI. And if they can deploy some cash in this selloff...

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elliott

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Re: Fairfax Africa
« Reply #41 on: April 16, 2020, 06:51:52 AM »
Notable that just cash and treasuries here, less all liabilities (there are virtually none), is about $2.30 per share.

At $2.90 you're paying 60c for some genuinely attractive assets in UBN, Nova Pioneer, ABC Botswana, maybe bits of CIG and AFGRI. And if they can deploy some cash in this selloff...

I would be cautious looking at cash.
its certainly possible (they said this yesterday) that some of the businesses need more cash to survive in the next months/years, and that Fairfax will provide it. so, the question comes back again to whether you think those businesses will be profitable one day, thus the extra cash well invested, or whether they will not, and thus Fairfax is just falling into the sink hole phallacy.

elliott

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Re: Fairfax Africa
« Reply #42 on: April 16, 2020, 06:53:31 AM »
oh, regarding new acquisitions, consider that now travel is very difficult in many parts of Africa.
management said that acquisition work is certainly affected by the covid19 situation.

petec

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Re: Fairfax Africa
« Reply #43 on: April 16, 2020, 06:57:42 AM »
Cash - yes - but it is still a lot.

Travel - yes -  but plenty of potential investments are listed and don't require cash.

They said they were hoping to have news on CIG and ATMA soon. I wondered if they are thinking of taking them private.
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petec

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Re: Fairfax Africa
« Reply #44 on: April 23, 2020, 07:29:50 AM »
Pure speculation, but if FAH consolidates ATMA at any point, and ATMA consolidates UBN, the P/BV and P/E metrics here get transformed overnight.
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