Interesting to see what Cyril's thoughts are on the AGM motions...

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15/08/23

07:55

Post #: 69337050
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Originally posted by thurman: ↑

from Cyril Jinks bell potter via LinkedIn

Thorn Group - TGa - 30 c Underlying value - 42 - 49 cMoat is a substantial shareholderToday Thorn announced a fully franked dividend of 7 c or $23.4 mThis leaves $94 m of free cash - 27.6 c. We estimate there a 12 c of franking available There is $25 m of residual equity in the business book which will deliver 7.4 cThe stock is trading at 30 c and there is 42 c of cash in the business I believe Tga will hold onto $50 m cash as they pivot into a new line of business - this is lroughly 7 .4 cI believe Duncan Saville and his team at TGa understand that a capital light business with a point of difference and a large runway for growth is the type of business Thorn Money should become If they can execute then that 7.4 c may well be worth 2 x book value Given we don’t know what direction they are heading this extra 7.4 c is hard to pencil in .Given Duncan has competence in both tech and business finance , I think I’m willing to back the boards judgement . Duncan will ol
wn 50 pc of this $130 - $150m businessI have watched with interest how Duncan has started RMC from scratch to create a business making $105 m npat with an amazing cagr and very high Roe It’s an ideal vehicle to back an acquisition or new strategy with a clean slate .I think management and the board have shown themselves to be excellent allocators of capital I look forward to seeing the rest of the story unfold .

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Interesting to see what Cyril's thoughts are on the AGM motions now...

TGA Price at posting: $1.30 Sentiment: Hold Disclosure: Held
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0 Great analysis

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