QED – is TheShareHub Multibagger champion from 2009 after delivering a massive 30 bagger from 8p to 240p.
Like many property companies, it dropped back after a placing/OO to boost cash balance and reduce debt levels. A 2 for 1 share split followed making the 240p high, a 120p high based on the new reformatted chart.
Whilst rents and values have reached a plateau and stayed relatively stable throughout 2010, the sector has been largely ignored after being a prime ‘bounce’ contender in 2009.
Looking at the Credit Suisse purchase, one would suspect that the II’s are starting to see the value in a possible property recovery in next couple of years. Or, the more extreme guess would be that a ‘buyer’ might be sniffing around.
Quintain is an excellent company and the assets are stunning. At 38p they are a bargain but not without risk.
Further placing’s may be required to keep cash balance in check and covenants secure. Research should be done on their bank agreements to help see where their ‘deadlines’ lie. Many property companies have slipped due to the short term nature of their debt refinance agreements in the ambulance chasing days of early 2009. These will need to be reneg’d soon so check out all these aspects on any property company in the sector before making an investment decision.
Quintain could provide a Multibagger opportunity for the long term investor with a 1 to 2 year return view. Current Sp 38p.