ASTORIA INVESTMENTS LTD Trade Ideas — JSE:ARA

Our opinion on the current state of ASTORIA(ARA)Astoria (ARA) is an investment company that was formed to give investors exposure to an international selection of equities in developed economies. The share trades well below its NAV and has only recently begun trading after being suspended from September 2020 to April 2021. The company benefited from the sale of "non-lethal self-defence" products during the period as a result of the civil unrest. It owns one-third of Outdoor Investment Holdings, a 35.7% stake in Trans Hex, and has sold its stake in CNA. On 19th April 2021, the company announced that following the distribution of 51.15m shares, trading in the company's shares had resumed. In its results for the six months to 30th June 2024, the company reported headline earnings per share (HEPS) of 79.29c compared with a loss of 18.32c in the previous period. The company's net asset value (NAV) rose from 74.76c (US) per share to 77.2c. In an update on the 3 months to 30th September 2024, the company reported headline earnings per share of 70.62c compared with a loss of 7.3c in the previous period. The company's net asset value (NAV) was slightly higher at 1407.67c per share. In a trading statement for the year to 31st December 2024, the company estimated that its NAV would be between 59.6c (US) and 63.58c—a decrease of between 20% and 25%. Volume traded on the share has increased to R131,000 worth of shares per day on average, with some days without any trades. It remains in a downward trend.

Our opinion on the current state of ASTORIA(ARA)Astoria (ARA) is an investment company established to provide investors with exposure to a diverse selection of international equities in developed economies. The share has been trading at a significant discount to its net asset value (NAV) and only recently resumed trading after being suspended from September 2020 to April 2021. The company saw benefits from the sale of "non-lethal self-defense" products during a period marked by civil unrest. Astoria currently owns one-third of Outdoor Investment Holdings, holds a 35.7% stake in Trans Hex, and has divested its stake in CNA. On 19th April 2021, the company announced that trading in its shares had resumed following the distribution of 51.15 million shares. In its results for the six months ending 30th June 2024, the company reported headline earnings per share (HEPS) of 79.29 cents, a significant improvement from a loss of 18.32 cents in the previous period. The company's net asset value (NAV) increased from 74.76 cents (US) per share to 77.2 cents. Trading volume for the share has seen some improvement, with an average of R227,000 worth of shares traded per day, although there are still days with no trades. The share is currently under a cautionary announcement and appears to offer good value at its current levels.

Our opinion on the current state of ASTORIA(ARA)Astoria Investments Ltd. (ARA) is structured as an investment company with the aim of providing investors access to a diverse portfolio of equities primarily located in developed economies. After a period of suspension from September 2020 to April 2021, the company's shares have resumed trading, albeit at a price significantly below its net asset value (NAV), which is a common situation that can offer potential value to investors if the underlying assets are sound. Astoria has benefited from diverse investments, including a noteworthy venture during periods of civil unrest where it profited from the sale of "non-lethal self-defence" products. The company holds substantial stakes in other enterprises, including one third of Outdoor Investment Holdings and 35.7% in Trans Hex, although it has divested its interest in CNA. The resumption of trading on 19th April 2021 followed the distribution of 51.15 million shares, marking a pivotal point in the company's recent history. For the year ending 31st December 2023, Astoria reported an increase in NAV of 3.4% in rand terms, amounting to 1454c per share. The management highlighted significant growth in USD NAV per share since taking over on 1st December 2020, with an impressive compound annual growth rate (CAGR) of 24.8%, translating into a total ZAR return of 137.6% at a CAGR of 32.4%. However, the first quarter of 2024 presented challenges, as reflected in a headline loss per share of 115.26c, albeit an improvement over the previous period's loss of 125.31c. The NAV as of 31st March 2024 stood at 1385.02c per share, indicating a slight decline from the annual figures reported for 2023. This could be indicative of volatile market conditions or specific challenges faced by the assets within the portfolio. One of the notable issues for potential investors is the liquidity of Astoria's shares, with only about R85,000 worth of shares traded per day on average, and frequent days with no trading activity at all. This low volume can pose significant risks when attempting to enter or exit positions and could contribute to price volatility. Currently, the shares are under a cautionary notice, which typically indicates that there may be significant news forthcoming that could affect the stock's value. This status, combined with the share trading below NAV, suggests that Astoria could represent a good value opportunity, assuming the cautionary notice does not foretell negative developments. Investors considering Astoria should weigh the potential for high returns against the risks of low liquidity and the ongoing uncertainty indicated by the cautionary notice. Monitoring the company’s announcements and understanding the nature of its diversified investments will be crucial for those looking to invest in Astoria.

Our opinion on the current state of ARA Astoria (ARA) is an investment company which was formed to give investors exposure to an international selection of equities in developed economies. The share trades well below its NAV and has only recently begun trading after being suspended from September 2020 to April 2021. The company benefited from the sale of "non-lethal self-defence" products during the period as a result of the civil unrest. The company owns one third of Outdoor Investment Holdings, a 35,7% stake in Trans Hex and has sold its stake in CNA. On 19th April 2021, the company announced that following the distribution of 51,15m shares, trading in the company's shares had resumed. In its results for the six months to 30th June 2023 the company reported a headline loss of 18,32c per share compared with a loss of 11,72c in the previous period. The net asset value (NAV) was 1408,49c per share. In a report on the 9 months to 30th September 2023 the company reported an NAV of 1407.67c per share and a headline loss of 7,3c. Volume traded on the share is a potential problem with only R52 000 worth of shares per day on average and many days without any trades. Aside from that, the share is under a cautionary and looks like good value.

ASTORIA INVESTMENTS LTD

ARA trade ideas