PHANTOM SHARES: The Finance Ghost: How investment properties in Joburg’s CBD outperformed London’s West End

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Success on the market is all about what you buy and how much you pay for it.

Would you rather own a property in London’s West End, or an apartment in the Johannesburg or Tshwane CBD? Once you’re done howling with laughter, I’ll point out that the answer isn’t as obvious as you think it is.

The discount to net asset value per share of 57.5% remains enormous. This provides a strong clue that the long-term share price chart isn’t pretty, as some investors must have paid a price close to NAV at some point. Sure enough, Octodec is down 47% over five years. The plan is to raise R500-million through a rights offer and R100-million through a specific issue of shares to Lebashe Investment Group. I’m interested to see who the underwriter of the rights offer will be, as such highly dilutive capital raises are usually only successful if a major new investor comes on to the register by acting as underwriter.

 

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I cant believe you publish this clown Octodec are up because they probably over report rev and under report impairments and expenses

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