Good morning!

I'm a little bleary-eyed today, as my flight home last night after the Northamber (LON:NAR) AGM was delayed (please note that I no longer have a position in NAR).

Today, I will provisionally cover:

There was a power outage at my office building, while I was writing up Bilby, and I am now aiming for a 5pm finish.

5.30pm: report finished for today, I got as far as XLM.

Cheers,

Graham



Northamber (LON:NAR)

  • Share price: 52.6p (-4%)
  • No. of shares: 27.3 million
  • Market cap: £14 million

Result of AGM

Potential Acquisition

I've written about this IT distributor recently, both here and elsewhere.

It's a classic "cigar butt" investment, with an old and unprofitable business attached to a very rich asset base consisting of cash, property and working capital. It has been unprofitable for nine years. A classic value investment, in other words.

I bought into it recently, at 51p, which I believe represents a discount to its cash balance. I think the shares would be worth 88p at a minimum, possibly 100p or more, from a simple liquidation and disposal exercise.

But before I go any further, let me echo what Paul said yesterday: "it seems crass to be talking about investments when someone has tragically died".

Northamber is a company in mourning, as its founder, Mr. David Phillips, passed away two weeks ago.

AGM Day

I went along to the AGM to understand the thought processes of the current directors. The Northamber office is in an industrial part of Chessington, only two miles from the famous "World of Adventures" (owned by Merlin). I got there via taxi from Gatwick.

The meeting was well attended, by microcap standards, and was much more crowded than the previous ones I attended. I estimate that there were 7 shareholders present, including the son of Mr Phillips (Mr Phillips had a 63% stake). And there were a few spouses and a crying baby, too! We…

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