Following on the heels of the cash offer for GP Hotels, I would like to discuss yet another similar offer for a deep value (CNAV) stock that we had invested in previously.
Kingboard Copper is a Hong Kong based company that is listed on the SGX.
What made us invest in this stock
It was in 2014 when we first picked up Kingboard Copper. The stock had a CNAV discount of 52% and POF score of 2. It had zero debt and was sitting on a mountain of cash totaling HK$1.1 billion.
After deducting liabilities, Kingboard Copper still had a net cash position of S$0.26 per share. At that time, the counter was only trading at S$0.19. This meant that for every S$1 we spend buying the share, we will actually get to own S$1.38 in cash.
We invested in the stock at an average share …