Wolf Money(Far East Orchard Ltd)
The below article is for educational purpose only. Kindly refrain from taking any action. It shouldn’t constitute as an investment advice. Please read the disclaimer . I bought a trial position at Far East Orchard Ltd. The main reason is the share price discount to asset value. The NAV stands at $2.88, which is close to a 67% discount to today’s last done price. The hotel business and student accommodation business are all decent. The undervaluation didn’t happen overnight. It has been ongoing for many years. A company can stay undervalued for a long period if no effort is put forward to extract the value in the company. The PBSA business will be the one with the highest potential. In the words of the management, they are the third largest PBSA operator in the UK. The company is trading at a yield of slightly above 4% or 4c dividend a year and, again, nothing to shout about. I am willing to give it a shot as the shares is trading at close to a 14 years low. Year 2012 was th...