Author Topic: LONR - Lonrho Plc  (Read 3127 times)

JEast

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LONR - Lonrho Plc
« on: March 07, 2013, 12:21:04 PM »
A possible 60¢ dollar for you global value hounds in the quickly transforming 100+ year old company.  London Rhodesia (Lonrho) traded on the LSE.

The very quick view is that they are now a more concentrated play on southern Africa’s prosperity.  After the spin-off of the airline business, their business is mainly agriculture (e.g. strawberries and peaches), but also including fish and crustaceans.  In the not too distant future, they will have the largest peach plantation in Africa to supply mostly Europe during the Christmas season.  For you Costco fans, they supply a Kirkland Signature product for Hake (a white fish similar to cod). 

Other smaller bolt-on businesses includes what they call infrastructure that is basically Luba Freeport – possible oil & gas staging and maintenance hub for West Africa more centrally located off Cameroon than Morocco (Canary Islands) or South Africa.  Also hotels with an exclusive 20-year master franchise agreement between Lonrho and easyHotel for the budget hotel segment.  The plan is for 50 hotels by 2016, but this appears doubtful in my view.

Extra Items:
•   57%% of Rubicon – now FastJet.
•   23% of LonZim (London Zimbabwe) – now Cambria Africa plc.

BV around £0.1 and selling around £0.06 in a very liquid market.

Cheers
JEast
Disclosure: Small toe-hold position.
« Last Edit: March 07, 2013, 01:55:03 PM by JEast »


bablu

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Hielko

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Re: LONR - Lonrho Plc
« Reply #2 on: May 15, 2013, 06:27:54 AM »
Just shows that the ideas that get posted here that don't get any replies are possibly often the best.

JEast

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Re: LONR - Lonrho Plc
« Reply #3 on: May 15, 2013, 07:03:45 AM »
Great call ??  Not really, just a cheap stock and sometimes good things happen to cheap stocks.  I was able to acquire more than a toe-hold position when Blackrock decided to dump their shares prior to the recent quarter end.

Now I have the high class problem of finding another 50¢ dollar home to put the excess cash to work.  Oh, the trials and tribulations of a value investor :)


Cheers
JEast

accutronman

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Re: LONR - Lonrho Plc
« Reply #4 on: May 15, 2013, 09:30:23 AM »
For those interested in African investment, I heartily recommend Bollore. I'm up 86% on this one since purchase last year.

frog03

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Re: LONR - Lonrho Plc
« Reply #5 on: June 11, 2013, 04:44:03 AM »
Do you think Bollore is still good value at current prices?

SharperDingaan

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Re: LONR - Lonrho Plc
« Reply #6 on: June 11, 2013, 05:26:29 AM »
You might want to be sure that you can handle the UK control, bribery, nationalization, currency control time bombs that come with it. That low BV is because it has been systematically asset stripped.