Guinness Peat Group PLC (ASX: GPG)

This is quite a long tale, so I am splitting this analysis over two posts: analysing GPG ex COATS and then analysing COATS itself.

GPG was the vehicle for rockstar corporate raiders Sir Ron Brierly and Gary Weiss. A good interview of Gary Weiss can be read in the book Masters of the Market. GPG is listed on the ASX, NZX and LSE.

GPG holds a motley collection of listed and un-listed investments. The company is in the process of winding up the company by selling off its investments while at the same time buying back its own shares and debt. At the end of this lengthy process, shareholders will be left with a share in Coats PLC: a company that makes threads and yarns of all things. 

I have worked through the balance sheet to update it for recent asset sales and share buy-backs. In some areas my numbers are rough and ready and I have not included an allowance for any income dividends from its investments. This at least helps build in a margin of safety. Given the rise in stock markets, some of the underlying investments have increased in value, which has been a positive for GPG shareholders. The attached spreadsheet shows my workings.

In summary, I estimate GPG has AUD 40c in NTA. The current price is 48.5c. I get the feeling I am late to this party and have quite possibly missed the easy runs in this case. So the question I ask myself now is whether I am prepared to pay 8.5c for COATS? Well, stay tuned for the next update on GPG and we will discuss further.

Kristian