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.
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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)
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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.
Having a look at SAV...Not an easy task.# 60% controlled by...
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