Author Topic: RHDGF - Retail Holdings  (Read 47639 times)

aryadhana

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Re: RHDGF - Retail Holdings
« Reply #140 on: June 23, 2020, 09:35:44 AM »
You're right.  I can't replicate my earlier calculation anymore but I think I replaced closing expenses with twice their corporate cash charges from June-Dec 2019 plus the $661k bonus accrual. 

Cash at Sewko/Singer Asia8.28.2
Shares of Singer India (59.1% of total equity)21.20
29.48.2
at 54.1%15.94.4
Cash at Retail Holdings 43.143.1
Dividend(37.2)(37.2)
Projected closing expenses(3.5)(1.7)
Proforma valuation ex dividend18.38.6
(per share ex April dividend)3.431.37

Come to think of it though, the margin of safety may actually be in the Singer India shares more than the cash, unless they gradually sell a partial stake to fund themselves at a loss or borrow (and the current Singer India value per ReHo share is about $1.29). 


writser

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Re: RHDGF - Retail Holdings
« Reply #141 on: June 24, 2020, 07:35:24 AM »
I'd say the margin of safety is just in the whole package being worth more than you pay. Selling Singer India gradually is difficult, shares are illiquid. I think they managed to reduce their position from ~75% to ~59% in the open market the past few years. Also, if they sell too much they lose their controlling stake, which you could argue is worth a premium to a buyer. Then again, a buyer never materialized the past decade ..
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