unbundling stocks

[SimonPB]

almost 2 years ago I went on a mission to find some top stocks that I figured would unbundl some of their cross holdings and hence create some nice share holder value. My three picks were; BAW, TNT & MLA - all three have done as planned (or in the process). So now I need a new bunch of potential unbundling stocks - and this is where I ask the forum for help.

Anybody got some ideas, thoughts etc. They really need to be companies were the current fit makes no sense (BAW, the PPC holding was too large relative to the rest; TNT; the fit between the 3 companies made absolutely no sense ...) as apposed to REM whio like the way they look.

[JohnnyCash]

Simon, have you given much thought to companies with large property holdings outside of their main focus? Perhaps plays where it can be seperately listed or sold off to the property players? Property will get even more coverage in the next few years and some of these companies may want to capitalise on the yields on offer out there... (Unlike TNT of course who wants to leverage inhouse)

[#3]

How about Telkom unbundling Vodacom to Vodafone and going after MTN?

[SimonPB]

Johnnycash - property. Nice idea, never considered that before. JP, nah TKG isn't ever letting go of Vodacom - it's there cash cow and they'd never get MTN without payign serious top dollar.

[JohnnyCash]

Just remember when youve considered and stumbled upon sumthink to drop a name or 2. I recall some talks around the life assurers porfolios but I think they'd much rather hold on for the yield than for a short term capital gain. Not so sure if there are any industrial or retail shares with large holdings though

[barry_1]

A while ago i saw an article to that effect in the Finweek.My own feeling is that Telkom would fade away if it could not rely on Vodacom.Just look at the second land line operator ,we hear very little on that front!..The government has legislated business apartheid between LANDLINE and CELL operators.As we all know this is bound to failure.They both use radio to a greater extent for vast distances.I would rather see CELL operators joining the second LANDLINE operator,we would then have competition and better service!

[Brazen]

Interesting JohnnyCash. That is something to consider in regards to a share like Illovo. Lots of property, some of it bordering on valuable residential areas. Another one is AECI. Good long term holds for those reasons.

[dilligaff]

Big property holding companies where it's not a key focus may also include AECI and TNT as mentioned. Any of the retailers? There was speculation in the BTimes earlier this year that companies with such large non-key property portflios are great private equity targets.....

[JohnnyCash]

Yeh, it was Sainsburys that was supposedly a equity play because it owns it own stores and triggered speculation of who else might be in play. I recall reading something regarding Old Mutual's proporty portfolio last year....

[JohnnyCash]

Illovo, could be a nice one since their focus seems to have moved into Mozam (Ithink?) with last weeks announcement (or week before, dam Im cr@p @ remembering dates and things..) If focus is on growing that side of the business, perhaps a chance of property in SA no longer needed?

[Brazen]

mmm excellent point. They have land in Malawi, Zambia, Swaziland, Tanzania and Mozambique. Great farming in Moz on much cheaper land now that the civil war is over. No sure exactly where they have SA property but I'm assuming large tracts in KZN - some of it prime such as Zimbali areas etc?

[JohnnyCash]

They recently announced a big development in Zambia! With Government participation etc. in anticipation of the lifting of duties by the EU in a couple of years time....

[SimonPB]

hhhmmmmm, ILV. Now that's my kinda share, a must have product, nve div yield, decent market cap & daily volume ...

[Brazen]

Sweet!! And a possiblilty of vast sums of cash from prime property. Nice thread Simone - you deserve a good bottle of wine. Remind me in 5 years time when the ILVs I'm gonna buy are worth a fortune.

[SimonPB]

so you gonna buy the wine now an let it age over next five years? you have good cellar? otherwise I can offer cellar space!

[Brazen]

Screwing the lid back on the Tassies as we speak and laying it down. . .

[dilligaff]

I see Illovo rated FllyValued at 1850 by ImaraSPR and 50/50 Hold and Sell on Moneyweb's click a company page

[Brazen]

Let me tell you a sad little story about those valuations dilli. Mid 2005 I bought AMS, by October SBK and others were saying at was fair value at about 320 and I sold at about 370. I could tell you another sad little story about PPC and fair value too, but it just gets boring.

[SimonPB]

ya well INet last had this stock as a buy in mid 2003!

tassies ... hmmm, a trick. Buy the dry red from some little estate that I can't remember the name of, and leave it for at least 5 years, 10 is better. becomes an awesome wine but if you leave it wrong, well vinager.

[kr_pto]

sigh, and me with INL and standard banks recommend. but to be fair, they advised the buy in 2003, so I cant complain that i only got 80% a year later instead of the 1000% it would be now. sigh sigh sigh.