Friday, March 15, 2019

Wessanen buy out offer and intrinsic value

July 2018
In July 2018 I worte: Mr. Market seems to have gotten a bit ahead of himself. The stock price of Wessanen dropped 26% yesterday, but the stock still isn't cheap. Today's price is: €12,8  Dividend: Wessanen paid a dividend of €0,13, which resulted in a 1% dividend yield. At the same time the company sold shares: They took money from shareholders (maybe not a bad idea if the share price is very high compared to intrinsic value). Conclusion: Not a stock for the Graham Defensive Investor. Maybe a buy under 8 EUR. 

After that, the stock dipped to EUR 7,66 (but I didn't buy, I don't have a good alert system set up. Today PAI is offering to buy the company for EUR 11,50 a bit more than 10% UNDER the price last July.

March 2019

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