I was digging through Hesulin’s trash can, and one paper that came under closer scrutiny was this Saga Furs. I once, a long, long time ago, got burned by this (and lost euros) when an inexperienced investor fell into the traditional value trap. Now, however, the numbers are interesting enough that it deserves a bit more digging. As has been commendably mentioned in this thread as well, there would be substance for an investment case based on the numbers. Unfortunately, the initial enthusiasm quickly died when I glanced at the company’s ownership and board. Most probably already know, but on the board, everyone except one person is a fur farmer, and the ownership list is dominated by industry organizations. A strong déjà vu to listed food companies – are we serving the producers’ interests or the shareholders’ interests?
The whole case also strongly reminds me of another similarly valued case from Helsinki: Ilkka. The assets clearly exceed the market value, but the governance structure is exceptionally convoluted, and power is concentrated in parties whose primary agenda is not maximizing shareholder value. The old core business is also slowly fading (fur auctions vs. regional media), and there is no clear outlook for the future.
Does anyone on the forum have a view on what could unlock value in Saga’s case? Of course, you get about 7% from the dividend, which isn’t bad if it stays at the current level or grows, but I wouldn’t base an investment decision on that.
In the long run, it doesn’t really warm you up that you know you bought two euros for one euro, if the two euros are in a wallet behind glass, and you can either wait for the glass to break someday or immediately sell the two euros for that same one euro.
It would be interesting to get more information about those properties.