While writing the Long Term View for Tourism Holdings [THL.NZ] I discovered that this company is hiding quite a delicious little secret. While closing at 75c last Friday, after being at a low of 45c over the last 52 weeks (see price chart above) the Net Tangible Asset (NTA) backing is booked in at $1.37 by the company.
To be sure it is hard to quantify as to what any asset is worth at the current climate of knockdown prices but at roughly half its balance sheet value the company's shares can be purchased. THL own a vast array of assets from camper vans to tourist attractions and land and buildings.
Granted THL have had a particularly bad last few years and a patchy profit history but their half year to December 31 2009 did improve vastly on the previous comparative year.
Clearly then the company isn't being run to a high degree of efficiency or with much skill otherwise the shareprice would at least be equal to the disposable value of its assets. The value of the management and goodwill is discounted by more than half and probably should be given the inept way it has been run over the last 10 years.
Seems a relative bargain at these prices.
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