Lord Ashcroft's Caribbean Investment Holdings (LON:CIHL) had loitered quietly at around 10-15p, until its awakening toward the end of 2019. Its share price took an astonishing run from 16p up to 61p during August 2020, though has since pared gains following its most recent trading update. At a current price of 41p, Caribbean Investment Holdings (LON:CIHL) offers investors significant upside in the mid-term.
Of particular interest is a series of court judgements made in favour of Caribbean Investment Holdings (LON:CIHL), in its battle to recover some £100m in debts owed to it by the Belizean government. The debt has grown considerably during the years that have passed, whilst the government has attempted to avoid settlement, though consecutive judgements appear to leave it no other option but to pay. The recovery of such a substantial debt would likely be the shot in the arm required to restore CIHL's share price to a minimum fair value of around 80-110p, with 120-130p not unreasonable.
With few shares in circulation- most held by Ashcroft himself- the share price is sensitive on low volume and has a tendency to move sharply. Worth noting is that prior to Belizean elections during November 2020, Ashcroft purchased a further £14m worth of Caribbean Investment Holdings (LON:CIHL) shares at a price of 37p. A vote of confidence and an indication that 37-40p may be a good entry price for those currently watching.
