Eurocastle a "cannibal" ?

Note 2017: "NPL Non Performing Loans in Italy 10% dividend FFO Funds From Operations pretty good, selling at 8,55 which is 7% under Net Asset Value"

The Eurocastle business is outside my circle of competence. (In other words, I don't understand it.) Eurocastle is run by Fortress Investments a hedge fund that was recently bought by Softbank.

Currently, (September 2019) the price is EUR 6,82 which is 28% under Net Asset Value of EUR 9,53. This summer the company made an offer and bought back EUR 40m at EUR 8 per share and is currently buying back EUR 3 million more on the open market. That should increase intrinsic value per share for the remaining shareholders.

A "cannibal" is a cash-rich, undervalued business that is consistently buying back shares, thereby generating tremendous value for shareholders. It is not surprising that Warren Buffett and Charlie Munger's Berkshire Hathaway’s top holdings: Apple, Coca-Cola and American Express are all “consistent cannibals,” i.e. companies that are continuously gobbling up their own shares.

During the past year, Eurocastle paid out EUR 1,9 in dividends and capital per share (not including share repurchases) that is 28% compared to today's price of EUR 6,8.

Conclusion: Eurocastle doesn't seem expensive today, but too complex for the Graham Defensive Investor because of amongst other things partial ownership of doBank.

Do you speak Dutch? If so please opt-in at www.valuemachinesfund.nl Thanks in advance! Comments, questions or E-mails welcome: ajb@valuemachinesfund.nl