CarboThis share was recommended by our engineer member to watch over the longer term.
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This company is one of those rare opportunities that has been overlooked by the city. It has a high NAV to it's share price, a pile of cash due to some recent property sales that is in the region of 3.5 times the value of its market price, some large holdings by some of the 'big boys' such as Britannic and Perpetual and not a great deal of shares available to the general public. It's recent £14m plus debt has now gone and one individual's share holding is only a few percent short of the point where a bid will have to be declared. I can see this share rising to 12p or more in the not too distant future - fingers crossed of course. I could be wrong but I think that this could be one of the best 'bets' for 2002.
On 25 January the shares in Carbo were suspended at the request of the company.
Pehr Gyllenammar's (who has a large holding in the company) bid intentions is a perfectly good reason to suspend trading pending an announcement. IF the recent rumour and share price performance is causing the share price to outperform the incoming bid then the shares MUST be suspended to protect current shareholders interests. It is my opinion that the bid (if any) is short of 7p. Not good business for Carbo but remember that the management can announce AND reject the bid at the same time. If this is the case then the share price will suffer. Also any sale of assets is also a very good reason to suspend trading.
While looking at current liability, it doesn't appear that much net cash can be gained, even if Carbo manage a net profit of 3 mln, say, from the sale of assets/operations, the fully value share price would be around 2.5 - 3p. This is a big difference from the current market price of 7.25p.
The above comments come from the iii bulletin board for Carbo
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