10/05/2006
The interim statement from Chesnara was noteworthy for two things: it confirmed embedded value post the acquisition of City of Westminster Assurance was £181 million (which compares with a £176 million market capitalisation at the current 168.5p) and it contained a dividend increase - albeit modest. The result of the latter is that you will now be enjoying a nine per cent yield if you bought on my recommendation price in May of 132p.
Management is obviously intent on buying more closed funds and has one or two in its sights. However, cheap deals are no longer available and there are now plenty of competing buyers. Chesnara needs to keep feeding the pot if it is not to swallow its own tail. But it is as likely to find itself a target in due course. Do not sell.
| LSE | £133.46m |
131.50p
|
-0.25p
|
|
| Other company articles: |
| 15/04/2008 |
| 05/10/2007 |
| 10/05/2006 |
| 09/05/2006 |
| 08/05/2006 |
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