Having a look at SAV...Not an easy task. # 60% controlled by Savcor Group OY. # Top 20 hold over 90%. # MC under $4m , But has an EV of around $14m ( $27m debt - $13m equity in Cencorp) # Aiming to cut debt by $10m in November.....How? # Generates large volume of sales of $80m PA. ---- What is the fate of SAV? 1) Will it go belly up?...Unlikely....Savcor Group will not allow it. 2) How will they raise cash?....A very crucial question to answer. # Selling part or all of Cencorp?....Possible. # Sell Savcor ART to a third party?....Will never happen.....Again because of Savcor Group. # Savcor Group takes it private?...Possible ..but what price? 3) Raise cash from the market?...Not at this depressed price....Since listing there has never been any dilution ( as a matter of fact ,SAV had a share buyback) ---- To my eyes ,SAV looks dirt cheap for an outfit with good IP that is capable of generating large sales volume on a global scale ( Someone will happily pay $20m + the $27m debt To acquire SAV ART & 40% of Cencorp)....It is the uncertainty that puts the market off....Perhaps also lack of trust in Savcor Group intentions. Any help from earlier holders is much appreciated....I am only a newbie to SAV.
SAV Price at posting:
2.5¢ Sentiment: None Disclosure: Held