Last month we said we were looking to be heavy buyers of Home Entertainment Corp (UK stock code HET) at around 50p.
The reasons were simple -
1) Assets at a discount. Assets by our simple calculations are around £0.95 per share
2) Turnover is £140 million per year and the market capitalisation is just over £11 million!
Well, we now don't think the stock will get that low so have been good buyers over the last week at around 59p. As we see it the opportunity cost of waiting for 50p which may never come is too high.
Better not to penny pinch and just get long. Of course, if it falls further to 50p we'll also be buyers most probably looking to double our position.
Target on this share is over 100p which could well come over the coming year if people start to note the potential in this stock.
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