Secondary Recommendation

MWB Group - Property group trading at huge 74% discount to NAV

June 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.

Like many firms with a focus on property, shares in MWB Group (not to be confused with MWB Business Exchange) have been battered from a high of 304p in September '07 to a low of 22p early this April before making a slight recovery. Part of the fall reflects the fact that investors can't get to grips with its hybrid business model, which comprises a chain of boutique hotels and majority stakes in two AIM quoted firms. But while the weakness in property inevitably caused the group's net asset value to fall to174p - versus a share price of 45p - there are now clear signs that the picture is improving. Not only did its recent IMS for the period to 7 May note improved trading conditions in all three divisions but MWB also removed funding unce ...

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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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