By HotStockRockets | Friday 10 March 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Investment Company Vela (VELA) has this week announced the sale of some of its shares in TSX.V listed BTL Group generating proceeds of C$277,910 for the Company (equivalent to approximately £169,530 at the prevailing exchange rates). To date Vela has invested a total of approximately £214,300 in BTL.
But hang on, it retains 689,000 shares which are now worth £1.644 million and also warrants which are worth c£60,000. So not only has Vela been shown to be an astute investor but it is now showing that it can and will realise value.
The company's second biggest investment ( a stake in Portr) was worth £1.289 million based on its most recent fund raise and there is a portfolio of other investments worth several hundred thousand pounds.
The company still has some cash at hand from its recent £550,000 bond issue so net assets have got to be £3.5 million +. Knock off the bonds as they are not convertible and you still get a NAV of c£3 million. At 0.19p-0.22p the market cap is £1.2 million. We are now up on our share tip but the shares are still a buy at up to 0.23p with a target of 0.3p+ to sell.
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