Market's view on Epe Special Opp
Published on April 2024
- There are discussions about the value of their LUCE stake, which is believed to be worth around 54 million GBP, surpassing their entire market capitalisation, with an additional 20 million GBP in liquid assets and other investments.
- Concerns are raised about the unclear valuation of the private companies they own, including Whittards.
- The company is noted for its liquidity, with approximately 20 million GBP available, primarily for investment purposes to address the discount issue.
- Observations are made that the company’s growth in value is often overlooked due to low trading volumes, with suggestions to narrow the discount to NAV, possibly through share buybacks.
- Significant growth in LUCE’s value since the last NAV update is noted, proposing potential meaningful impact on the company’s finances.
- There are speculations on potential uplifts from Whittards and hopes for partial exits or distributions to shareholders to manage discount levels.
- The company’s inability to attract short-term traders due to a wide spread between buying and selling prices is mentioned, alongside the opinion that the company might be undervalued.
- A mention of a portfolio update that occurs only with specific news, with the latest significant uplift in value attributed to LUCE.
- General interest in the valuation and performance updates, especially regarding the impact of LUCE’s performance on the company’s NAV.
- Anecdotal evidence points to the popularity of Whittards among certain demographics, hinting at potential for retail success.
- Discussion around the timing for the next NAV update, anticipating increases due to LUCE’s recent performance improvements.