RISP
Recycles dryer sheets
- Joined
- Jul 18, 2012
- Messages
- 407
Hi there, I've been following this company for a while now, but it's stock is not behaving as I would expect: DL:EN Amsterdam Stock Quote - Delta Lloyd NV - Bloomberg Markets
Full disclaimer: I have a small position in DL in my gambling account. It is currently down -45%. I guess this tells you all you need to now about my stock picking skills.
But let's focus on the current and future situation: After a lot of turmoil, Delta Lloyd NV, a Dutch insurance company, has recently completed a rights issue. Management feel they are now sufficiently capitalized. There are some issues, but the business is profitable.
Here's the kicker: They published their generally positive half-year figures today, and the stock price rose some 4%. But it still seems dirt-cheap to me! Consider these two figures:
1) The current market cap is ~1.66 billion euros, but shareholders' equity is 3.79 billion euros.
2) If you are looking for income, the (already severely reduced) dividend they announced today is 0.28 euros per share, for a yield of 7.7%.
Is this an opportunity to buy a dollar for 44 cents, or am I overlooking something?
If anybody enjoys this kind of exercise, I would be glad if you shared some insights. You can find the full financial report here: https://www.deltalloyd.com/media/205476/interim-financial-report-half-year-2016.pdf, or a somewhat condensed writeup here: Good progress on capital and cash
Full disclaimer: I have a small position in DL in my gambling account. It is currently down -45%. I guess this tells you all you need to now about my stock picking skills.
But let's focus on the current and future situation: After a lot of turmoil, Delta Lloyd NV, a Dutch insurance company, has recently completed a rights issue. Management feel they are now sufficiently capitalized. There are some issues, but the business is profitable.
Here's the kicker: They published their generally positive half-year figures today, and the stock price rose some 4%. But it still seems dirt-cheap to me! Consider these two figures:
1) The current market cap is ~1.66 billion euros, but shareholders' equity is 3.79 billion euros.
2) If you are looking for income, the (already severely reduced) dividend they announced today is 0.28 euros per share, for a yield of 7.7%.
Is this an opportunity to buy a dollar for 44 cents, or am I overlooking something?
If anybody enjoys this kind of exercise, I would be glad if you shared some insights. You can find the full financial report here: https://www.deltalloyd.com/media/205476/interim-financial-report-half-year-2016.pdf, or a somewhat condensed writeup here: Good progress on capital and cash