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trading below NAV

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Brait has historically been very conservative in the way they value their underlying investments. They use percentage of EBITDA as the valuation method and currently evaluate NewLook on a 13 times multiple. Some retailers out their on 20 times or more even. The hammering here comes from a currency devaluation (thanks Brexit). So Brait's woe's are thanks to the GBP. Now if we think this will stay weak - so be it, but New Look has rolled out more than 80 stores in China now, with rollouts in Europe progressing too. This must surely start looking like a value play.
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Super Contributor
Honestly though SKAAP, do you like their assets?
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Super Contributor
That came out sounding ironic. It was not intended to be. Nice retail assets... just looking for some input. Bought this at R9 in 2009 - sold for all of R5 profit thinking I would buy it back lower. Avoided looking back due to the pain. Kick, kick,kick
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Well, as a South African investor, you don't get a lot of pure international retail exposure, Brait's New Look is the only one I know. Brait is well capitalised, a good balance sheet - decent enough assets and will have the ability to raise decent finance (like the $500m recently) for acquisitions. So yes, I like them. At these price levels, it is really the pound that is pushing the price down. So if you are betting on a complete collapse of the British economy, then sure, I would say stay out of this. I have held onto brait for a couple of years (I have gotten over my disappointment at the Pepkor offload) - and have seen half my value get eroded - but it is a very small part of my portfolio - so might be looking to bulk up right now.
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Super Contributor
The way I see the charts the pound and BAT are both oversold and due for a rally, but after that I think there's much more pain for both.
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Super Contributor
They also have ICELAND supermarkets (/ettes) with going on 900 stores and VIRGIN ACTIVE all over the world - so plenty of retail presence internationally. Support is around R70 - I would probably take some around there... if it gets there!
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