Secondary Recommendation

London & Associated - Property group trading at deep discount to NAV

August 2009

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Small-cap retail property specialist London & Associated is a prime example of how family controlled firms have an uncanny knack of surviving and prospering even in the toughest of times. While the shares have mirrored the performance of the sector as a whole, rising sharply from 30p in April '03 to peak of 135p in April '07 before re-tracing to the current 38p, the firm is in a better financial position than most. On the basis that it has significant un-drawn borrowing facilities, a low level of voids and no hefty development commitments in the offing, the shares trade at an unjustified 47% discount to current net asset value (NAV) of 71p. London & Associated is controlled by the Heller family (65% shareholding) with chai ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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