City Of London Investment Group (LON:CLIG) - FY Results
Share Price 420p
Mkt Cap £111m
Conflict Disclosure: No Holding
Conclusion With Barry Olliff leaving at the end of December combined with a volatile share the shares are cheap. The company has invested in staff and new teams and I suspect the risks of management change may well turn out to be benefits. The shares could do well, or corporate activity may benefit shareholders
Rosenblatt Group (LON:RBGP) – Acquisition
Share Price 88p
Mkt Cap £71m
Conflict Disclosure: No Holding
Conclusion: Rosenblatt has the lumpiest of the lawyer revenues. Adding another unpredictable corporate transaction based business to create earnings enhancement doesn’t necessarily make a good investment. Finncap have done the same with Cavendish. I can’t help but feel there is a reason these corporate finance boutiques don’t float on their own. And to do this at a time when corporate transaction are being delayed according to Rosenblatt’s 1 August statement has a defensive feel. The maths of earnings enhancement is very different to efficient capital allocation. We can expect a de-rating.