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Opinion

Binary bet

Binary bet
October 17, 2013
Binary bet
IC TIP: Buy at 18.5p

Importantly, this particular approach also mitigates risk. That's because if a company is selling off assets in line or above their book value, but the share price is trading on a deep discount to net asset value, then these asset sales highlight the hidden value in a company's accounts to a wider investment community. In turn, this should prompt a re-rating - especially if the cash proceeds are being returned to shareholders.

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